I'm about to start at 401k at work. Keeping in mind pic related chart, how much should I put into actual stocks and how much should I put into a 401k "savings account" that will be unaffected by a market crash? Or instead of savings account should I pick bonds, or can even bonds crash? Putting 5% in plus 3% that I get for free, how do you guys suggest I divide these percentages?
401k thread
Ayden Ross
Lincoln Young
Maybe 4% bonds 4% stocks? What do you say Jow Forums?
Liam Parker
Depends on when you want to retire. If retirement is far out like over 10 years, then there is no reason not be risky. Most aggressive investors to 100% stock or 80/20 stock/bond. Pick index funds that are with low expense ratios.
Keep in mind to not panic about the market go down. People tend to panic and time the market which is a usually a poor decision.
Levi Roberts
If you plan to retire in 20+ years I would put it in the highest risk/reward mutual fund/etf that your company offers with some going to international and some in US.
I would only consider changing to something safer if you are closer to retirement. The market has never been worth less after 20 years.
Austin Martinez
I'm 25 and started my 401k back in sept
So far I had 1200 but have lost 20% since
But that's okay, unless the entire fabric of western society collapses it will eventually go back up.
Wyatt Reed
3/3 stock bond, hold 2 in cash in the account.
Not sure if you have that much control with a 401 but with a SIPP I'd be keeping back some cash for the next 2 years.
Chase Jones
Wait until the recession it's over, in the meanwhile keep AAA+ bonds or just cash
Joseph Cook
Just put it all in the Vanguard target retirement 2060 fund and forget about it
Dylan Martin
>But that's okay, unless the entire fabric of western society collapses it will eventually go back up.
Should I tell him guys?
Zachary Rivera
Dude we’re about to head into a shit storm of a recession. If you are disciplined take what you would put into the 401k and put it into an Ally bank account or into rolling CDs and make 2-3% that is safe and FDIC insured. Don’t touch the money for 3-4 years.
In before “muh inflation”. The recession in the next year will flip that. And you won’t lose any money from the market shitting itself.
In the long run you have to ask yourself if it’s safe to put money into an account every two weeks, where cokehead Wall Street asshats get to gamble it and make profits now, and you have to wait 30+ years to touch it. I really think 401ks are a middle/upper class wealth destroyer. You take 10% of your income, they offer a measly corporate match, you pray to Baal that you don’t retire during a recession, you pray the tax rates don’t change, and you have to wait until your balls have fallen below your knees to touch it. It’s a scam. If you are disciplined and you don’t want to be a wage slave for the rest of your life you need to focus on building revenue generating assets now. So you get income and wealth now, not in 30 years when your dick falls off from a tumor.
Gabriel Price
Nope don’t do this.
Connor Young
How old are you? 100% stock is going to be fine. Unless they really ramp up the rate hikes 80 stock/20 bonds will be acceptable. I personally avoid international.
Xavier Williams
Don't put a single dime right now, shit is about to implode any moment
Christian Kelly
Bro, just invest in the target retirement 2020 fund. That way he can retire in just 2 years!
Samuel Ross
Every 401k has a money market fund. Even if he follows your advice he should be doing the 401k contributions.
Landon Long
It don't matter. The whole point of 401 is that it's your retirement account. The crash is temporary, the market will recover in few years, then go up, then crash in 10 years again, and again and again. Stock market crash is a problem only when you're planning to retire. If I was a boomer planning to retire in the next few years I'd pull the money out now.
Cameron Sanchez
Don't invest in that shit, buy crypto you fucking retard.
Carter Nelson
It makes no sense to defer 10-12% of your income and have to wait 4 decades to touch it. I can get MM rates on CDs right now without the time/withdrawal penalties.
If people have any sort of discipline they can build wealth now. Why associate your retirement with the idea of locking yourself in the corporate circut for 30-40 years. You don’t have to do that, even if you are given some carrots to do it.
Christian Diaz
you can roll it over to ROTH IRA retard
Angel Long
>Self-justification
But that's okay... :)
Benjamin Cox
This
Jaxon Johnson
This is usually a good strategy, but not right before a potential crash.
Seriously, just read the news: marketwatch.com
Brody Lee
He's getting a 3% match, which is a 60% bonus on top of 5% contribution. So even if he went full retard and pulled it out early he would be up after the early withdrawal penalty.
But he doesn't need to, since he can either convert to a roth and withdraw it after 5 years.
Brayden Williams
He still has to settle taxes in the roll over. And has to wait 5 years. He has to judge if the 3% is worth the 5 years.
OP here’s an article on roll overs: rothira.com
Judge for yourself what is best. There are pros and cons for any option. There restrictions and limitations with any route you go. Figure out what life style you want and what your discipline level is and judge accordingly.
What this guy is suggesting is fine. My suggestion is to be in cash for the next 3-4 years, before you consider putting into any MM or 401k program. You can always contribute to a Roth or MM after the 3-4 years. Or you might take a different route (real estate, business, etc). Right now be safe and be ready for opportunities.
Nolan Morris
I started a 401k in august (my company doesn't match). A third is going into cash, a third into bonds. The last third is Pimco short fund. No way this chart doesn't shit itself within the next year, 2 years max. Absolutely we will see lower. Will start injecting into targeted funds once the dow is down a good 30+ percent.