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My 401 K is handled by T Rowe Price. I've posted before on my bearish outlook, and having just readjusted my contributions, I thought I'd run it past the board.

A little context - I'll be leaving the country this summer and no longer contributing to the 401K. Though I have every intention of opening another retirement fund, my income is likely to be less than half of what I'm making now. I have approximately 20 years until retirement. I worry about the dollar devaluing and a long term recession here for the next few years. I have approximately $100,000 saved so far, with $60,000 in this 401K.

The current distribution is as follows: Artisan Int'l (ARTIX) 20%, Balanced Fund (RPBAX) 30%, Equity Income (PRFDX) 20% and Spectrun Income (RPSIX) 30%.

There is no money market/CD option in my plan. (Yes, I'm even thinking about cashing out for a year or so - how bad do you think that could be?) I'll probably be posting further about my other funds.

Thanks!!
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There is no money market/CD option in my plan.

Is there some reason that you can't roll the 401K out to an IRA when you leave your job so you would be able to choose almost any investment you want? Even if you are staying with the same company, you may technically then be an employee of "ACME Widgets of Spain" or whatever.

If things do turn as gloomy as you implied, then diversification might help you more than putting all you money in a US dollar money market fund.

Greg
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The rollover to an IRA is a good idea.

For one thing, you will have more choices at Ameritrade, for instance.

You need to quantify your gloom about the market. At this point there is no reason to think that the market will break the current uptrend. Of course, anything can happen if there is a terrorist attack.
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If you really think we are headed for a recession, then you are likely better off in individual investment grade corp bonds. (as opposed to a bond fund). You also may consider funds that are specifically designed to take advantage of a bear market ( I can't think of any off the top of my head). If we have a recession, it will have as much or more of an impact on many foreign markets and you could see significant loses on both your domestic equity income holdings as well as your foreign stock holdings. I would either be adding to the Spectrum income or simply buy no-callable investment grade bonds.

Even your balanced fund at roughly 50/50 lost over 10% during '01 through '02.

I would not recommend CDs for someone of your investment leanings. The only good CDs these days are 1yr or less and if there really was a recession you would find yourself with a lot of maturing CDs and no where to put the money.
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The only good CDs these days are 1yr or less

Where are you getting that idea?

Check out any of the CD rate lists. You can find CDs at 5% APY out to about 2 years, and then a bit of an increase all the way to 7 years.
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The only good CDs these days are 1yr or less

Actually, Treasury bills are yielding better than CDs on investments less than a year.
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<Where are you getting that idea?>

I use bankrate.com. If you know of a better source, I would be interested in seeing it.
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I use bankrate.com

The baton has shifted from the commercial bank-rating sites (which are funded by the companies they rate and thus are untrustworthy) to user-supported sites. Users do the legwork of tracking down and verifying the rates. Yes you miss out on "site specials" that folks like Bankrate do but there is much wider coverage of banks (BankRate-type places take 'hush money' from their top advertisers to ignore certain banks)

http://www.bestcashcow.com/
http://www.bankbestrates.com/
http://www.fatwallet.com/t/52/320690/
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