I moved my 401K type plan into bonds today
I was in a 2030 plan that was 67% in stocks. Returns suck across the board.
Talking to our retirement rep today I figured bonds would be safer.
50% in a Retirement portfolio that’s 65% bonds
50% in an Inflation protection plan that 97% bonds and then cash.
Not a huge balance. Sort of a cash in the backyard thing for me to dip into when I retire (about 10 - 15 years from now). Maybe a couple trips or some unexpected car repair or something like that. I have Soc. Security* and a defined benefit pension.
* 🤞
= new reply since forum marked as read
Most on DU have noticed that the situation is very abnormal with contractionary pressures in labour, government spending, and tariffs are all operating simultaneously.
Good luck
If you have any wisdom for why you think stocks will make a new high within twelve months, I'm all ears. You think business will shrug off a little bit of tariffs and contract cancellations and invest heavily in new plant here because of tRump's tariff? You buy tRump's statement that manufacturing will increase dramatically in the US very very soon? You buy his claim there will be no pain (or on other days he says little pain)?
I can't advise anybody, but I can say I got completely out of stocks early January.
and a high yield savings account. At my age (77) I no longer have the proverbial "long run" to ride out the market ups and downs.
Good luck and best wishes.
I remember coworkers nearing retirement who saw their retirement account drop by 1/3 during Bush’s recession.
if one has enough gains hiding out for a bit is not a bad idea. I lucked out in late 1999/early 2000 and started reading about markets, technical analysis, bought the Edwards and Magee book, patterns of accumulation and distribution etc. I remember the day vividly, 3/31/2000, end of quarter window dressing when I sold our entire IRA account and closed the computer with a smile on my face. The market had already gone up 20% for a few years, not normal in historical terms, then waited for 2+ years to reinvest. Lost lots of sleep, we did not have a defined pension plan, so it was a wild ride.
'Investing for the long term' depends on where one is in their life cycle, how much they have saved/gained. During that time Peter Lynch, of the Magellan fund, and maybe others, told people to hang in there. My thoughts went to those who were nearing retirement. If you are young the market will go up eventually and you are averaging down if contributing on a regular basis, if one is older and has nice gains then pay more attention.
Best of luck!
