Could use some advice.
- Thread starter kathy88
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DrCap
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diversify.
This is a crazy market so you should probably just put some money in each pot and hope to not get too badly burned. You could also hedge your bets by buying shorts on the side, outside of your retirement accounts (such as short ETF's) I did that so basically at least some of my portfolio was protected whether it goes up or down (of course you don't make any money, you just come out even, and you lose after the expense ratios).
This is a crazy market so you should probably just put some money in each pot and hope to not get too badly burned. You could also hedge your bets by buying shorts on the side, outside of your retirement accounts (such as short ETF's) I did that so basically at least some of my portfolio was protected whether it goes up or down (of course you don't make any money, you just come out even, and you lose after the expense ratios).
C
Chester Copperpot
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Things that people need. Food. People always need food.. NO matter how bad things get, people will still be going to mcdonalds and shopping at the supermarket...
Also while people may not splurge on big ticket items, they will get things repaired... so any type of companies that repair, fix cars, etc...
Clothes is also something people use .. etc..
kathy88
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I'd GTFO, but then... the market seems to be totally irrational.
Check out Gold...... SERIOUSLY; What the f----
Yes, I already plan to put some of it into metals... that came out wrong.
Conza88
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Ah was more referring to the price... like dropped to $800. Doesn't seem rational to me, what with increased demand and inflation going up.
jaybone
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Being in a very restrictive retirement plan myself, I can understand the predicament.
If a stable value fund is available, I would put 30-50% in there, you will not break even with inflation but principle will be as safe as possible. And IMO the loss in purchasing power will be worth preserving principal; if you do not LOSE money then if and when a crash occurs you may be able to shift back into the market at much lower prices.
The rest I would split between large cap value, large cap growth and bond funds.
Everybody's plan is different, so without knowing your choices is is hard to say.
Some plans allow you to take a loan from it, depending on the terms of the loan it may be a good way to get some out of the system to deploy into metals/commodities, short funds, etc. In my plan one can take a loan for up to 50% of portfolio value, then the payment is taken right out of the paycheck, we pay 5.5% interest back into the plan, so you are ostensibly paying yourself interest. This is a non-taxable event.
If a stable value fund is available, I would put 30-50% in there, you will not break even with inflation but principle will be as safe as possible. And IMO the loss in purchasing power will be worth preserving principal; if you do not LOSE money then if and when a crash occurs you may be able to shift back into the market at much lower prices.
The rest I would split between large cap value, large cap growth and bond funds.
Everybody's plan is different, so without knowing your choices is is hard to say.
Some plans allow you to take a loan from it, depending on the terms of the loan it may be a good way to get some out of the system to deploy into metals/commodities, short funds, etc. In my plan one can take a loan for up to 50% of portfolio value, then the payment is taken right out of the paycheck, we pay 5.5% interest back into the plan, so you are ostensibly paying yourself interest. This is a non-taxable event.
cash could be king
I've been very happy being in cash over a year. You may want to take a chunk and put it in the cash account in the fund and just sit out for awhile until this storm blows over. If you think there is a better than 50% chance that the market goes down in the next 6-12 months rather than up then capital preservation is most important.
I've been very happy being in cash over a year. You may want to take a chunk and put it in the cash account in the fund and just sit out for awhile until this storm blows over. If you think there is a better than 50% chance that the market goes down in the next 6-12 months rather than up then capital preservation is most important.
jonahtrainer
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This is probably the best.
The principle is: remove the most layers of risk between you and your purchasing power as possible.
Most pension funds are going to go poof. The real crash will be almost instantaneous as we are now in the Information Age. Protect yourself while you still can. If you can cash it out that would probably be the best route. Then hold dollars, gold or some other currency in an off-shore bank. This Winter is going to get really cold.
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