Salamo Alykom everyone
I have a 401k with my employer although they invest in haram things and I wanna avoid that
I need a replacement that performs similar to the vanguard plan they choose for me. I.e. I need to choose etfs or sp500 that halal and contains short term investment and the plan changes overtime to more stable investments like any halal bonds or similar stuff that have stable return. For example in the first 10 years it is more stocks than halal bonds then 2nd 10years equal then final 10years more hala bonds than stocks.
Any suggestions from the community will be very appreciated as I do not want haram money.
Please if you could not understand my explanation let me know to try to rephrase my question again.
As-salamu Alaykum,
Halal bonds aren’t really a thing, we do have SUKUK which are halal alternatives to bonds.
It’s hard to say what you have on offer with your employer and vanguard.
The most I can say, and I’m not a US person - you’ll need someone more knowledgeable, is to take a look at either two or three funds.
One halal index or halal world ETF/Fund
Or two halal funds (US and World or World and EU, etc)
And one SUKUK Fund, if you search your provider for SUKUK you should see maybe two:
PNB Paribas
Franklin Templeton
You can keep your asset allocation simple with what you have or look at some famous ones through a quick Google search.
Primarily, younger you are the more stocks you want and the older you get the more fixed income you want.
My personal recommendation, as a 25 year old, is:
95% stock, 5% fixed or stable (Gold or SUKUK)
Slowly reduce risk exposure as I get older with less stocks and more fixed or stable income.
Jazakhalla khairan,
Maheen
1 Like