Message Font: Serif | Sans-Serif
No. of Recommendations: 0

My wife has her 401k with Fidelity through her work. We were both worried last year when the markets began to turn. But based on all that I had read we decided to keep the funds where they were and try to ride out the market.

This was very difficult to do when we were looking at -26% YTD rate of return average.

I guess my question is...was this the right thing to do? We lost about 10K from the account, and given that this year is looking just as bad, should we keep our diversification in the same funds and not move them to the bond funds that are at least seeing small gains?

All the projections that Fidelity shows for it's funds are negative for the whole year.

Would it be better to transfer all our funds into those safer funds and watch and wait for the market to turn around and then transfer them back into the more aggressive funds?

I realize that doing this we would basically "eat" last years loss...but I'm worried about another year of the same. We only have 19K left in the account.(it was @ 27K)

We still have about 15-20 years till we would consider retiring, but even with that time table I hate to see us lose this kind of money.

Any advice or suggestions would be more than welcome!


Print the post  


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.