401K

dkennedy

Senior Member
When is everyone moving their 401K money to a safe option? Selling off their other investments, paying the taxes on the gains? Then riding the storm out, with the money on the sideline to reinvest after the crash?
 

The Original Rooster

Mayor of Spring Hill
When is everyone moving their 401K money to a safe option? Selling off their other investments, paying the taxes on the gains? Then riding the storm out, with the money on the sideline to reinvest after the crash?
When I retire about 10-12 years from now. I'm just going to have to ride it out.
If you're concerned about taxes, you can convert your 401k to a Roth 401k (in some plans) but you'll have to pay the taxes on that conversion. Anything it gains after that is tax free.
 

shdw633

Senior Member
At this point I have pulled all my cash from the market and am on the sidelines looking for opportunity. My 401k's are still a bit on the aggressive side as the market is still waiting for Joe's stimulus package to come out and I don't think we will see any big shift in markets until around his first 100 days so I feel I still have some time to get a little more before shifting them to much more conservative holdings.
 

dkennedy

Senior Member
At this point I have pulled all my cash from the market and am on the sidelines looking for opportunity. My 401k's are still a bit on the aggressive side as the market is still waiting for Joe's stimulus package to come out and I don't think we will see any big shift in markets until around his first 100 days so I feel I still have some time to get a little more before shifting them to much more conservative holdings.


This was kind of my thought process. Sell off the mutual funds and pay the taxes and hold that cash for future investing or use it to pay off the house.
 

AceOfTheBase

Senior Member
Just don't leave it in cash - make it grow somehow..
medical REITs maybe, but not mall REITs, not CDs, not bonds.

pay off the house is good too, assuming the neighborhood isn't going downhill.
 

Milkman

Deer Farmer Moderator
Staff member
I’m not contributing anymore. Taking monthly distributions from both. I moved 5 years worth of distributions amount into stable/cash.
 

tr21

Senior Member
buy gas and oil stocks. with the dem's in control it will go up. i just bought $50k of cvx (chevron)
 

The Original Rooster

Mayor of Spring Hill
I’m not contributing anymore. Taking monthly distributions from both. I moved 5 years worth of distributions amount into stable/cash.
That is certainly one advantage that age gives you. When you're still 10-12 years from retirement trying to maximize growth like me, it's hard to bring yourself to move it from stocks to money market/bonds/etc.
 

tr21

Senior Member
been selling out of the money options on my winners for some income. worst case i get called out with a bigger profit
 

AceOfTheBase

Senior Member
been selling out of the money options on my winners for some income. worst case i get called out with a bigger profit
That's a clever way to do it.
Back in the day, I was friends with a stock broker that specialized in income from covered calls. Course he made commission on both sides, that made him happy.
 

Buford_Dawg

Senior Member
There is really no reason to move your 401k money from stocks, unless you are close to retirement. Even if the market turns down, you will be buying low and reap the benefits once it goes back up. It is cyclical as we know, heck we've seen a huge down/up cycle in 2020 alone. Even at my age, late 50s, you have got to continue to invest a certain % is stocks or something that will grow your 401k so it will meet your retirement needs. Make sure your portfolio is diverse and has a nice mixture of stable and growth per your age bracket and let it ride. As you move closer to your retirment age, then most of your contributing and portfolio should lean to the stable side, but still got to have some growth there. Unless your portfolio is large enough already to meet all your retirement financial needs, then stabilize it all.
 

Milkman

Deer Farmer Moderator
Staff member
I would suggest considering target date funds. Example target date 2030 for someone planning to retire in 10 years.

The managers of these funds adjust the funds as needed to proper amounts of stock/bond/cash for an investor in that age group.
 

jicard3

Senior Member
I've got a ways to go before retirement. My portfolio is diverse and I plan to keep pouring it in there. Right now I don't see downturns as a bad thing, I see them as opportunities to acquire more shares on the cheap and establish a new "bottom". It'll make the upturn that much better for me.
 

tr21

Senior Member
I would suggest considering target date funds. Example target date 2030 for someone planning to retire in 10 years.

The managers of these funds adjust the funds as needed to proper amounts of stock/bond/cash for an investor in that age group.
yep, thats what i tell people who dont understand the market
 

tr21

Senior Member
That's a clever way to do it.
Back in the day, I was friends with a stock broker that specialized in income from covered calls. Course he made commission on both sides, that made him happy.
i am retired but a gambler. you can leave you money in your 401k after you retire to avoid taxes on it. now days commissions even on options is almost nothing, i'm with fidelity and its like $10-20 a contract. i own good stocks now like nvda ($540 a share) 300 shares and sold feb 19 $565 calls on it today for 14.50 which made me $4150. my cost on the shares is $523. so even if i get called out on them i do good. if you know options and own good stocks its a smart play right now !!! and the total commission on it was $2
 
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Milkman

Deer Farmer Moderator
Staff member
yep, thats what i tell people who dont understand the market

Agreed. I neither understand the market or have any desire to learn.
I retired last year and will probably leave my funds in Target 2020 accounts as long as they exist.
 
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