I moved my 401K type plan into bonds today

[underpants]

I was in a 2030 plan that was 67% in stocks. Returns suck across the board.

Talking to our retirement rep today I figured bonds would be safer.
50% in a Retirement portfolio that’s 65% bonds
50% in an Inflation protection plan that 97% bonds and then cash.

Not a huge balance. Sort of a cash in the backyard thing for me to dip into when I retire (about 10 - 15 years from now). Maybe a couple trips or some unexpected car repair or something like that. I have Soc. Security* and a defined benefit pension.

* 🤞

[gab13by13]

1. DOW futures are down 2.7%

[Ellipsis]

2. Smart man.

[gab13by13]

3. People are worried about stagflation

I’m thinking maybe deflationary. With massive unemployment who will have money?

[WarGamer]

4. I didn't touch our portfolio...

I invest in the long term and think the next "all time high" will be within the next 12 months.

Go long.

[central scrutinizer]

10. Ditto

I’ve never tinkered with my investments. I bought into a socially responsible mutual fund thirty years ago and it’s averaged 10% over that time.

[WarGamer]

11. In fact... I might even add-in to our port if we see discount prices in the next few months.

[Bernardo de La Paz]

16. What a strategy: catch a falling knife. . . . . nt

[Ms. Toad]

26. I tinker with mine, occasionally -

when the growth has been uneven and I need to rebalance the portfolio. By occasionally, I mean once every few years.

[Bernardo de La Paz]

15. Because everything is normal & normal indicators apply & normal patterns apply?

Most on DU have noticed that the situation is very abnormal with contractionary pressures in labour, government spending, and tariffs are all operating simultaneously.

Good luck If you have any wisdom for why you think stocks will make a new high within twelve months, I'm all ears. You think business will shrug off a little bit of tariffs and contract cancellations and invest heavily in new plant here because of tRump's tariff? You buy tRump's statement that manufacturing will increase dramatically in the US very very soon? You buy his claim there will be no pain (or on other days he says little pain)?

I can't advise anybody, but I can say I got completely out of stocks early January.

[Ms. Toad]

25. Agreed.

Anyone who sells low because of panic, when they aren't withdrawing the cash because they need the cash in the short term - or because of Required Minimum Distribution, probably doesn't have the risk tolerance to be in the stock market in the first place.

[anciano]

5. I am currently doing a government money market fund

and a high yield savings account. At my age (77) I no longer have the proverbial "long run" to ride out the market ups and downs.
Good luck and best wishes.

[MLAA]

6. I moved a large percent into 3 and 5 year funds with guaranteed 4.5 and 5% respectively in Dec and late Jan.

[PoindexterOglethorpe]

7. My financial advisor has done pretty much the

same thing for me this past year. I'm still taking out 4%, and the money is growing.

I need to have a conversation with him about spending down as much as possible while I am alive. My one son, known here as My Son The Astronomer has had the wonderful good fortune to have been gifted money by his wealthy paternal grandparents. He's also inherited from at least two relatives who have passed away themselves.

I often joke that someone should go after him for his money.

[Meowmee]

8. I was just talking to people at one account today

And will be doing something similar this week. I made a contribution to my roth ira and put it in a federal money market account with 4% returns, instead of the mutual fund, and I will be changing the balance after talking to a bond adviser tomorrow to 50% /50%. If you're really worried you can put all the money into a federal money market account as it will be safe there. But they told me even bonds will not be totally safe. This account has recouped some of the loss in December. The other one I need to do that soon too. 10% loss so far in both accounts.

I wanted to buy into a Canadian Government bond fund but they did not have that and I don't know if US government bonds are safe now. For some reason in the first account I never diversified it to some bonds which I should have done.

[Bernardo de La Paz]

17. Royal Bank Canada and BMO (Bank of Montreal) have Canadian funds available in US dollars, and US operations

If you invest or want to invest, you can talk to their advisors too.

[Meowmee]

20. Yes I know thanks 😁

We are going to do that too. Some is already there from my father but it hasn't been probated yet. I have to start that. It is not easy to do and we had to wait for the US probate first for 2-3 years. The lawyer was crazy, delayed everything, and was disbarred towards the end, then he became very ill. There is still so much to do. When that is done that will go right back into those same bonds.
But this fund here is American and he said they have no Canadian bond funds... I will ask again when I talk to the specialist tomorrow.

Kicking myself for many reasons over hiring him instead of a lawyer a friend recommended who would have got it done quickly and a lot cheaper etc.

[beaglelover]

9. If I had that long before retirement I would have stayed invested in stocks, esp dividend paying stocks.

[Ms. Toad]

27. Yup.

Even the 30% drop in 2008 recovered in around 5 years.

[bucolic_frolic]

12. Smart move. Will be a rough 3-4 months for any Krasnov portfolio.

I may bail on a few things, but I'm ok.

[Earthrise]

13. I moved them into Money Market not long ago.

I remember coworkers nearing retirement who saw their retirement account drop by 1/3 during Bush’s recession.

[cliffside]

14. You're lucky to have a defined pension plan, they mostly did away with those years ago ...

if one has enough gains hiding out for a bit is not a bad idea. I lucked out in late 1999/early 2000 and started reading about markets, technical analysis, bought the Edwards and Magee book, patterns of accumulation and distribution etc. I remember the day vividly, 3/31/2000, end of quarter window dressing when I sold our entire IRA account and closed the computer with a smile on my face. The market had already gone up 20% for a few years, not normal in historical terms, then waited for 2+ years to reinvest. Lost lots of sleep, we did not have a defined pension plan, so it was a wild ride.

'Investing for the long term' depends on where one is in their life cycle, how much they have saved/gained. During that time Peter Lynch, of the Magellan fund, and maybe others, told people to hang in there. My thoughts went to those who were nearing retirement. If you are young the market will go up eventually and you are averaging down if contributing on a regular basis, if one is older and has nice gains then pay more attention.

Best of luck!

[MichMan]

23. Defined Pension Plans are also invested heavily into stocks

They are also facing significant losses. If they are for government employees and teachers, the taxpayers will be required to make up the difference which will likely mean cuts in schools and programs

[cliffside]

24. True and probably should have said that professional money managers might have taken a more defensive ...

position. Many individuals do not have the time or training to do so managing their own retirement accounts.

[LudwigPastorius]

18. I'm not too far from retirement age, so I've got significant exposure to bonds, and I'll tell you...

I worry that Trump, being the complete moron and Putin agent he is, will order the Treasury to default on bond payments. That way, in his twisted mind, he'll screw foreign debt holders and "erase" the deficit.

https://www.project-syndicate.org/commentary/trump-second-term-less-risk-averse-could-try-to-default-on-us-debt-by-william-l-silber-2024-04

[exboyfil]

30. Been thinking about that as well

[radius777]

19. Probably a good move.

The market 'always going up' was based upon a post WWII global order that Trump is dismantling. Especially the post 2008/post GFC order. What Trump is doing is at odds with the recommendations of most economists on both the left and right. Safe haven assets like treasuries, money markets and gold etf's are probably the best bet at this point.

[cliffside]

21. Longer term charts SPX and consolidation periods ...

not making any predictions, but over history the markets do go up, but there are also long periods of consolidation and drawdowns that should be respected. Moving past the 1929 period, just look at the periods of the late 60's- early 80's and then 2000 high to low in 2009. The SPX did not reach the 2000 high until January 2013. Looking at historical charts help.

https://www.tradingview.com/x/daaedugc/

https://www.tradingview.com/x/lOfRYoTs/

[CountAllVotes]

28. 4.2% IRA CD

For another couple of years.

Not a whole lot but insured and safe in a credit union.

[exboyfil]

29. My primary IRA was 70% Bond 30% stock

That is about 90% of my retirement money (12x current annual salary). Dumped 7% that was equity to cash early on (wife's IRA and current 401k). Got another 3% in cash in HSA. If it drops another 5 to 10%, then that 10% goes to equities. Think I am about a 1/3rd of my annual salary down. My bigger concern is losing my job which happened to me last year. My current job pays about 65% of my previous job.