Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: donnamacd Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: What do I do now? Date: 3/26/2000 5:13 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I'm approaching 62, and plan on working until I'm 67. My 401K is invested sort of equally over an S&P 500 Index Fund, an International Index Fund, a Small Cap Index Fund, and a General Dynamics Stock Fund (I work for Electric Boat, a GD company). I'm really happy with the way my 401K is earning money, but I'm wondering if I should "protect" some of it by putting it in one of the "safer" (read duller) funds. My other choices are a Balanced Fund, a Fixed Income Fund, and a Bond Index Fund, none of which is really earning squat. If I should move some of the money, when should it move? Where should it move? Am I being too greedy to leave it where it is? Should some of the company stock be spread into the 3 index funds I now hold? Thanks for any help you can give me.
DMacD

Print the post Back To Top
Author: DoktorDi Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3186 of 19483
Subject: Re: What do I do now? Date: 3/26/2000 5:43 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Gosh, Donna, I'm not a finance professional, but it looks like you've got a great port and a great plan. And we're probably near neighbors (Guilford).


Print the post Back To Top
Author: rjm1 Big red star, 1000 posts 10+ Year Anniversary! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3187 of 19483
Subject: Re: What do I do now? Date: 3/26/2000 7:32 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I'm approaching 62, and plan on working until I'm 67. My 401K is invested sort of equally over an S&P 500 Index
Fund, an International Index Fund, a Small Cap Index Fund, and a General Dynamics Stock Fund (I work for Electric
Boat, a GD company). I'm really happy with the way my 401K is earning money, but I'm wondering if I should "protect"
some of it by putting it in one of the "safer" (read duller) funds. My other choices are a Balanced Fund, a Fixed Income
Fund, and a Bond Index Fund, none of which is really earning squat. If I should move some of the money, when should it
move? Where should it move? Am I being too greedy to leave it where it is? Should some of the company stock be
spread into the 3 index funds I now hold? Thanks for any help you can give me.
DMacD


So far so good. You are asking the $64 dollar question.

I think most of us would postpone the decision for another year or two. Guess that is greed.

Maybe put all new money into fixed income type securities to start to building a "cash" fund to cover several years of living expense.

Remember, bond funds have an interest rate risk so you should avoid the funds. You want securities that will mature when you need them. From your 401k choices you might want to build the cash fund outside of the 401k.

I think I would waite two more years, but if the market tanks next year my answer maybe wrong.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: PVFOOL Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3190 of 19483
Subject: Re: What do I do now? Date: 3/26/2000 9:01 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Re: Post 3185. I am 62, also. Your mix sounds fine to me, esp as your time horizon is at least 5 years away. Bond funds are RISKY. If the yield goes up (Lately?), your capital goes down. You can lose a lot of money that way.

Print the post Back To Top
Author: mdorsey One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3192 of 19483
Subject: Re: What do I do now? Date: 3/26/2000 9:28 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Two points. Sounds like you have 25% in one stock and 75% in stock funds. As you approach retirement an allocation of 50/50 stocks/fixed income would lower risk and provide growth. For income bond funds provide diversification and lower risk than stocks.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement