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Lots of talk about another major market downturn in 2010 but it all seems to point to after Nov elections. I've heard the best thing to do is put the money in banks, FDIC insured @100K accounts. I tried to manage my 401K during the last downturn but still ended -28% down after the bottom ended. So how does one protect their 401K investment, meaning that my company's available selections are either company stock and a handful of funds and one government backed bond? Can't take the money out, fear of leaving it in. The politics in this so called recovery is taunting for a beginner investor.
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Hi rmurphy003,

Can't you roll over your 401K (or most of it) to another financial institution? I know the plan at my employer allows me to do that. You can set up an IRA retirement account at Fidelity or some other brokerage institution which will allow you to choose from many investment options. May be worth a look.

The downside to this is that most employer plans allow you to take a loan out against the principle and you pay yourself back with interest credited to your account. You cannot do that with a self-directed IRA.

'38Packard
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Many 401K funds offer guaranteed income funds or money markets among their list of investment choices. If you are convinced the equity markets will crash, those fixed income funds offer you the best defensive position.

Last time treasury bonds proved safest. Your govt backed bond could be best.

But frankly I hope you are wrong. These days the media do a great job of hyping every story. Most of the claims are exxagerated--often by a lot.

Let's hope the US learns to reduce its deficits before the grim reaper comes to visit (forcing policy changes a la Greece on the treat of economic calamity). Economic recovery is slow to arrive, but I am still optimistic eventually it will get here, and when it does, that will do a lot for our deficits.
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Put your money in money-market or stable funds or bonds. Not stocks.
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Hey Folks, If this isn't my first post here, it's been years since my first and worth saying Hello to All, again.

We have a new 401(k) facilitator, if that is the correct term. Blackrock bought Barclays. So, am re-balancing late this year as I review available funds.

Firstly, does anyone have personal (or otherwise) insight into Blackrock? Their Target Funds performed well last year, tho' my skeptical side wonders which fund managers didn't, eh?

Secondly, a few tidbits for thought. Between the present and November 2010 leaves plenty of time for equities to provide another 7-8% return before a possible post-election down-turn carrying into 2011.

Perhaps stimulus liquidity will be sopped-up somewhat, FED rate hikes might finally begin to loom (markets forward-look ~6-months into first half of 2011), inflation (vs. deflation) might begin to make TIPS a better play among fixed-income, and if investing for long-term -- what's wrong with dollar-cost-averaging down during latter 2010, throughout 2011 and ... beyond?

These are just a couple of things I'm considering as I look to re-balance now and then again at the end of the year.

lookin' forward,
duey
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