Was anyone that is leaving going to rely on some 401k money. I have not looked but from the current market, it's safe to say its tanking badly. I know advisors are saying no worries, but some older ones that are leaving wanted to ride out some 401k until official retirement.
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Then there are those who forwent the big "get rich quick" funds, and simply piled money into VZ stock for the last 25+yrs... Never saw giant moves, or made big one year gains. They just plugged along and learned to live with 100-200k swings in the total 401k balance in a single month, (sometimes a day)... they cared not... Why.??? Well because every 3 months another DIV arrived. After retirement they can just sit back and have that $15k deposited into their bank every 3 months. Secure in the knowledge that every year the payment will increase another 2%. Meanwhile they still have the same number of shares... Until they turn 70 1/2 and the Gov forces them to sell it. The daily balance is meaningless. Note that when the stock spikes to 60 for little reason, you can always sell. Then move it all the MM account and collect 2% interest within Fidelity, while you wait to buy back more VZ shares than you had before when it drops back to say 55. (You will get a "Please do not do this", letter from Fidelity... but who cares, you now have even more shares) If it then drops to back to the high 40's for awhile... so what, the DIV $$ still arrives Feb, May, Aug, Nov like clockwork. FYI the DIV never stopped when the market crashed in 2009... stock went briefly to $26 but came right back... DIV even increased during that time. Just be ready to pull the plug if the company (VZ) does something really stupid. But for some... VZ is not a bad place to be during a bear market. There are much worse places to be. (Like emerging markets, REIT funds, or Bonds when rates are rising)
Go to the Fidelity site or call them, time is money. Don't wait any longer, I moved mine a month ago to money market. When the Dow drops 400 pts it's not sending me in a panic anymore.
How did you "get out" and move all 401k into a money market?
Don't wait till you get hammered even more ,i got out 2 months ago all in money market,while i watch other cry about their 401k and i told them,its still not to late to go to the side lines ,just take your losses and wait and as the market tumbles in a couple of months then you get back in and you will make up your losses as the market cycles up,but its going be a rough ride down down down first
Great advice to a point, not everyone is on the same timeline with their four o ones. No one knows how long equites will need to recover, historically stocks and fixed income take a hit when brother gives a quarter. A macro view might compute into a prudent move by the Fed, for the individual equity holder, it s---s.
Agreed that Donald needs to stay out of the tariff business, but it’s hard to compete when China subsidizes its exports.
No p0litics.
Your stupidity is showing
Best bet is to run wh--es. People always need to get laid.
Conventional wisdom with 401k is to ride out the bad market so that your portfolio recovers when the market does. You can dump what you have now if you really need immediate cash in hand or are convinced that there's a much deeper drop ahead, but that's usually the wrong long term move.
Of course the Fed raised rates. The economy has been growing at a predictable rate. Inflation is stable. The unemployment rate continues to be low. That information was already priced into the market because everyone who does this for a living expected it. You raise rates in times like these so that you have the option of stimulating the economy by lowering them when times aren't. Just because Trump is addicted to stimulants sniff doesn't make it a good thing for the economy to be.
Trump tweeted that we should "Feel the market, don’t just go by meaningless numbers." Maybe if he cared about the numbers, he wouldn't have lost his shirt on everything from airlines to c-sinos (who loses money running a c-sino?) to the point of having to launder money for the Russians because no reputable financial institution will trust him with credit anymore. He knows a lot about feeling p--n stars and playboy models, but all that touchy-feely doesn't apply to financial markets.
You know what wasn't priced into the market? An extended partial Federal government shutdown and an unpredictable President who thinks tariffs are the answer to everything and that trade wars are easy to win. We've got an executive branch with no Defense Secretary, Chief of Staff, or Attorney General being led by a habitual liar and apparent felon who appears to be spiraling out of control as the slow grind of the criminal justice system tightens around his pink, fat neck. That represents RISK, and markets HATE risk.
OP, talk to a lot of people and get good advice. Good luck with what I'm sure is a difficult decision.
In this instance it is the Federal Reserve Board who is destroying accumulated wealth.
@enm rational people laugh at you
The only thing that's good right now short term is money market, some are almost 2.5% right now. So I would take a bunch of that VSP money and at least dump it there.
So what have you and your advisers done?
Around August I moved five years of living expenses into T-bills.
That gives me 5 years to recover. My VSP will be stay in cash to live on until I tap 401K and IRA funds.
You should adjust you stock investment strategy as you age.
Trump's market ? No, its the Feds who keep raising interest rates that have caused the tanking we all see happening right now. These same a*hles never raised the rates when Obummer was president. They're suffering the same Trump Derangement syndrome that the MSM has, and just want to make Trump look bad. Trump's economy was having a very positive effect on the market before these Fed monkeys started raising the interest rates.
You will lose the value of your VSP in your 401k under Trump's market. Adjust accordingly.
The market BEAR is in,take your losses before you even lose more ,lose 50k - 100k in your 401k already,stay in and you will be crying in a couple of months,markets are unstable dow,s&p,nas all below the 200 day moving averg,get out before its too late then ypu will have to wait another 8-10 years to make up your losses,stay in and you will see..just look at the charts