No. of Recommendations: 1
I would not worry about bankruptcy of stocks in your mutual fund per se. Few companies sink into bankruptcy by surprise. Most sink into declining earnings and begin reporting losses before they finally deplete their resources and go bankrupt.

So your fund manager should be investing in solid investment grade stocks with most of your assets. They should be playing risky stocks (like banks and auto companies now) only with limited funds and only if they know what they are doing. So your exposure to this, even if they pick badly, should be limited.

Of course if your funds are invested in a hedge fund, or a "short" fund, or other high risk vehicles, the answer changes. But why would you take such risks with your retirement money?
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.