Just seems like it’s built on a house of cards right now. Manufacturing ended the year in a recession, feds pumping money into the banks to keep the flow going, and now this pandemic talk spooked me. I’ll let it ride for a few months in a more conservative fund and see where it goes from there. But guessing the market is a fools game and my luck is shit anyway....
If you've got 20 years why not just leave it in either an appropriate target date or equities? Sure it'll dip but it'll always rise higher than bonds.
this is great. thanks. the future taxes have always got me confused. think i’m going to keep doing the majority in traditional but throw a little into the roth. are you planning on moving your whole balance from the 2040 fund to the 2015 fund or just your future contributions?
planning on both, I don’t know a whole fucking lot about the market but 2020 has me spooked. I’d hate to lose the nest egg I’ve made over the last 10 years because I know how long it took me to get back where I was after 2008. I can’t imagine losing a 1/3 again....
The 2015 fund still has a 30/70 blend of stocks to bonds, the 2040 has something like 70/30 stocks to bonds. So I’ll still be in the market but at a lot lower risk.
assuming 2040 is close to your actual target retirement date, you’re wanting to forgo the appropriate allocation for someone your age for the appropriate allocation of a retiree.
Yes because the allocation of the current retiree is a more low risk option. My retirement date will actually be 2033 so rolling with a 2040 was probably over doing it and I should have went with a 2035 but I made pretty good returns on it.
The allocation for your age takes the risk of a severe downturn into account. I understand the desire to market time, it’s natural. It could work out for you, but the odds aren’t in your favor.
Yeah I fear you’re probably right, this was off the advice of a financial guy my co workers talked to about a week ago so we’ll see :fingers crossed:
Who is the 401k with? If it's with Vanguard, I'd consider looking at the Wellesley fund instead. It's a similar stock/bond ratio, but is an active fund with better performance and a similar expense ratio. Or Wellington is a 66%/33% split and also an active fund.
I’m sure I could google this but is there like a “schedule” to show when target retirement plans start moving to more conservative ratios? I wanna say I’m in like 2055 target, but just curious.
Fidelity and I think we’re stuck with them through my company. Can’t remember who we were with when I hired in 23 years ago but I think it was T Rowe price and they gave us many more options.
I've got Fidelity too, but at least we have Brokeragelink so I can pick any fund/ETF/stock I want to use.
Market timing! Good luck! A simple read on why this is a bad idea: https://www.thesimpledollar.com/inv...best-stock-market-days-can-tank-your-returns/
Take a look at that and let us know if you have any questions. Obviously the glide path will be specific to your particular fund family. https://www.jhinvestments.com/viewp...-date-fund-glide-path--and-how-does-it-work--
I personally like the idea of having 20-25% of my tax advantaged funds in a Roth for some flexibility in retirement. I'm only around 18% now so I'm putting all my contributions to the Roth 401k for now. I'll switch it back to traditional down the road when I get the Roth % higher.
Think we need to open up a Wall Street bets thread for some of the activity that’s being discussed here.
PENN is moving again. Portnoy said he’s going to make sure it gets over 100 per share, so naturally I’m just going to hold until it does that or tanks.
Now I just need to decide what to do with my 171% return on my sale yesterday. Should’ve bought when it was down in the 200s, but oh well.
I don’t think there’s a rule of thumb at all because all in all they’re still reasonably new on the scene and people use them in different ways. Ours allows for three cash “hurdles” to choose from... 1, 2, and $3,000. Personally, I set that at $3,000 because if you’re going to need the money it’s almost always an emergency and now you should have less concern about if it’s a bad time to access the markets for more cash. I take the rest and am about 70/30 with it. More conservative than a 401k, but again... you have to think about the purpose of the money and the likelihood of withdrawal. When you need the money from an HSA you NEED IT. Never fun to take money out of an account that’s down 20% and feel bad about that and been in bad shape health wise as well.
That makes sense. I was thinking keeping it somewhat conservative for the fact it’s an emergency use type situation, but would be nice to get even 2-3% return back on it compared to the like 0.2% you get from the actual savings account.
I’ve seen people build them in stages like building blocks...build the $3,000 hurdle first...then build the next say $5,000 with a balanced fund or maybe even a short duration bond fund, then the rest into a couple of stock funds or indexes once the “base” is built.