Is it time to lock in 401k gains?

Discussion in 'UPS Retirement Topics' started by brownmonster, Mar 10, 2011.

  1. brownmonster

    brownmonster Man of Great Wisdom

    With all of the turmoil in the Middle East, rising oil prices, and other issues would it be wise to lock in retirement money for a while to ride out the storm? I know you shouldn't try to time the market but at age 50 I don't know if I can stomach losing another pile of money.
     
  2. Jones

    Jones fILE A GRIEVE! Staff Member

    You've still got 9 1/2 years before you can make withdrawals without a penalty, so my advice would be to let it ride. I don't know what your retirement financial plan involves but keep in mind that you don't lose any money until you sell and that you don't have to make any withdrawals until age 70, so technically you still have 20 years to ride out any downturns.
     
  3. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    You can get out of stocks and move it into a Money Market Fund.
    Trying to time the market is something that no one has ever been able to do successfully.
    However, it's not worth getting ulcers over.
    Perhaps you could move 30 -40 % over to Money Market and then move 5% more ever month one way or the other.

    But like Jones said - don't pull it out of the 401k. That's a loser move.
     
  4. brownmonster

    brownmonster Man of Great Wisdom

    That's what I was thinking. Slide my balance into a fixed rate fund and when the market dumps 30 or 40% I can by back in. I'm 100% aggressive right now.
     
  5. satellitedriver

    satellitedriver Moderator Staff Member

    First off, do not take my advice, as financial advice.
    If you are willing to play in the market you must be willing to lose 50% of what you have invested.
    That is a real harsh reality.
    If any of the money you have will be needed in the next 5 to 7yrs, it should not be in the open market.
    When others are selling, it is the perfect time to buy.
    Presently, my portfolio is 65% invested in the market and 35% in fluid money waiting on buying opportunities.
    Always have a 6 month cash reserve before investing.
    All the financial stuff aside, spend some money on improving and enjoying your daily life, within measure.
    Rich, or poor, everyman takes the same amount of money into his grave.

     
  6. brownmonster

    brownmonster Man of Great Wisdom

    I chose to do nothing. The market went on a nice roll.
     
  7. Jones

    Jones fILE A GRIEVE! Staff Member

    Smart play.
     
  8. bigblu 2 you

    bigblu 2 you Active Member

    can you only make one transfer per month?
     
  9. brownmonster

    brownmonster Man of Great Wisdom

    Looking back it seems staying the course was a solid option. Now is it time to lock in gains?
     
  10. Guess it depends on your time horizon. If you need to start taking withdrawal's in the next year or two. Maybe lock in some gains.
     
  11. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    We are certainly due for a correction.
     
  12. Might be a good time to rebalance. Maybe your target was 70/30 mix when the market crashed.. With all the gains the past 6 years you might be at 85/15?
     
  13. oldngray

    oldngray nowhere special

    I wouldn't make any big changes now but it would be a good time to adjust things.
     
  14. That's what I said!!^^^^^^^^^^√^^^^↑
     
  15. The Driver

    The Driver Active Member

    I have just started my 401k about 9 months ago and it's set for my target retirement date. Think someone like me should rebalance or move assets until the next crash?
     
  16. No stay the course.
     
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  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    No.
     
  18. That's what I said ^^↑^^^^^^^
     
  19. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Still staying away from bonds for now.
    Wait for Fed to make their move before moving any more into bonds.
    I went for a mix of Intl versus US.
    Russell has performed well and still maintaining position.
    S&P 500 still trucking along with almost 50% of my investments there.
    Looking at McDonalds very closely. Underperform and closing 200 stores with a revamp.
    I have had MCD for years but now I cannot buy and may be a sell.
     
  20. No bonds for me either. The Fed is forcing people into the market.