DH’s employer merged recently which resulted in a bit of a bump to the 401k. He’s still a few years from retirement and can keep working if needed.

But it would suck to lose a bunch of it.

I still have about 11 years to go before I retire but I have a pension. My 457 isn’t as big as his 401k but again it’d suck to watch a bunch of it evaporate.

We are aware of the potential drop but we aren’t budging at this point.

Met with our advisor and made some adjustments. Made some of our own decisions too. A chunk of it is in an aged based fund since part of the goal is to maintain part of it.

Usually called something like a lifepath fund with a number (year) by it that represents the year you intend to retire. As you get closer to that year, the fund automatically shifts its investments to “safer” mixes (for instance more bonds than stocks.)

I retired in 2010. At the present time 8 years after retirement it has about 40% in stocks and 60%
in fixed income. Eventually the allocation goes to 30% stocks and 70% fixe income. I started investing in it back in the 90s and it has done well for me. You pick the year you will retire 2020, 2030, 2040 and so on as you get older the fund invests more conservatively.
I also have a group of Vanguard funds in another IRA that I manage myself to give a similar asset allocation as the T. Rowe Price Fund.

I've squirreled away quite the retirement pile, but a good piece of it is in a thing called 2020. I'm actually retiring at the end of this year, but the funds were all numbers ending in zero. They didn't have a 17 or 18 or 19 fund. 2020, 2030, etc.

This fund, however, is a stacked series of other funds, so they're automatically moving money from fund to fund within the 2020 grouping to help maximize returns while reducing risk. The entire collection has been increasing at around 5.86% the last two years.

Selling off bits of my riskier funds and mining into bond funds. I expect a significant correction this year.

and it will have a temporary blip in the market - but not a crash. Who knows. Wish I had a crystal ball.

I have just been lucky enough ?- but mine has grown 40% since January. But I know it will soon end and I don't want to lose it all again.

Odd turn of events...spike in market juxtaposed with a leader who I despise to the core of my being

Bonds will go down if interest rates start going up

Did well...but think things have changed

Holy Wow Wow!!! 40% in 25 calendar days (18 trading days). A really hot stock?

On Edit - by comparison, the S&P 500 is up only 6.2% in January (through Thursday Jan 25's close)

On 2nd Edit - if you meant "since January 2017":
The S&P 500 is up 26.8% since end of 2016, and up 24.6% since the end of January 2017.

Three different apps that buy mutual funds or ETFs, a Roth IRA, and my siblings and I are working on converting our deceased mother's 401K into inherited IRAs. I'm not much of an investor so would hate to lose what little I have.

What does it take to have a guy who can instantly move things to cash?

TlalocW

Anyone would be on call to liquidate if you arrange ahead...but geez...how do you know when? It's like you have to have a crystal ball to know....they are hauling trump away in a paddy wagon tomorrow at 10 am. Like I said...some say that the market will take a dive if trump hauled off...but it will be temporary.

So Sorry about your mom!!!

Realize theres fear of losing what you have, but if you move it to cash you will have to pay taxes on any gains.

We would never "instantly" move any of our investments.

That makes you not want it to ever happen again.

...no investor has continual gains. We invest for the long term.

otherwise it’s just fluctuations in the market. I had friends that cashed in their 401k’s when the market dropped to 10,000 during the mortgage crisis to start investing in property instead.
Very bad move, THEY lost money. I increased my contribution to 20% of my income at that time, and have done very well.

If the market goes down, you new investments result in more shares.

If you lost so much in 2002 that you still haven't gotten it all back, you must have had everything in tech and internet stocks.

I lost a lot then, but it came back. Lost again in 2008. But my investments have come roaring back. I took out some extra cash last year, and may do so again soon. Meanwhile, I'm farther ahead than ever.

Trying to time the market is a fool's game. Re-balance, shift investments around in various ways. If you're concerned about income, buy stocks that pay dividends.

Spent about 6 months between assignments day trading back then. Fun then...but as you get older u don't want to risk as much.

Timing the market to when trump will be hauled off is being played by millions of people right now.

A balanced, diversified portfolio should weather most market gyrations.

Our portfolio has survived the crash of 87, the dot com bust and the 2008 GFC. Our portfolio lost about 25-30% in 2008-09, when the Dow lost 50%, and regained it within about a year. Our money has nearly doubled since then. (We did move to a slightly more conservative position around late 2010).

The market is overdue for a 10-20% correction. Despite the unpredictability of the "very stable genius", things for investors don't look too bad. Of course, if DJT starts WWIII, your 401k will be the least of your worries.

And if so, will the drop last more than a week or month? And when will you get back into the market? (A market timing decision is really two decisions -- when to get out, and when to get back in).

I think Pence will be as good for investors (in the short-run anyway, and as bad for ordinary working and middle-class Americans) as Trump.

I can understand trying to time the markets (although virtually no professionals have been successful at it consistently, at least I haven't heard of one, excepting those investment newsletter claims, and I doubt DUers are any different despite unverifiable claims to the contrary), but trying to fine-tune it to a particular event, especially one like this, is, well, pretty out there. If you think the market is way overvalued, then I don't think you should wait for some event, start easing out now.

But I do think this market has less than a year left in it.

For my 401K, I'll probably move things to a little more conservative positions soon.

Most concerned about my daughters college fund. It's been doing very well, and she's a sophmore in HS right now. I'd love to squeeze out what I can for her, but also can't afford a huge hit to that fund in the next two years. I'll probably move that to bonds later this year.

stock market. I totally understand what you are saying - wanting to squeeze as much out as possible - and move to conservative at the right point.

... but I do not.

Can it be risky? Sure. But I tend to invest in index funds, or more balanced funds. Realistically, I'd never be able to retire if I didn't get the kind of returns I get from the market. I'll be honest.... I've had excellent returns since 2009. I know it won't last forever, but it really just takes a modicum of prudence.

There does seem to be that filling bubbling up again. This is a fairly conservative guy, but certainly not risk-averse. He's done very, very well, and obviously knows his stuff. When he starts to get jittery we figure we'd do well to listen.

Move to safety at lower return - and potentially miss out on strong gains for, say, hypothetically, months. Lose either way....now til a crash or at the crash.

Atman, what impact do you think there would be if Trump found totally guilty of collusion/money laundering. Others have said minimal since Pence and repukes would continue same monetary policies. Maybe I should just forget about that - it's what I have obsessed about.

My guess would be a short-term deep fall in the markets if Trump was somehow found guilty. How that happens is another matter, but let's say Mueller recommends impeachment. I think the traders and his stock market buddies would cash out, fearing the loss of their cash cow in Trump. But it would probably turn around pretty quickly as they realized the GOP will do nothing to prosecute Trump, and even if they did, Pence would still be in charge. Now, if the Democrats re-took the House and/or Senate, it could be a whole other story. The richie-riches would be in panic mode. Or not...because even they know that the market always does better under Democratic leadership.

The thing is, I think it about far more than Trump. The whole market is due for another "correction." There is a lot of money being made now, and it's not sustainable. There are lots of very wealthy men moving money around without producing anything. Just wealth for themselves. When the stocks get too expensive, with they're money safely squirreled away overseas and hidden, lots of cash on hand, they'll cause another crash so they start scooping up things back up for pennies on the dollars, while everyone else loses their savings and homes. We're inconsequential. Collateral damage.

So, to your initial question; cash out now or wait. Personally, I think there are still some months to go. Probably too early to take the money and run now. But it deserves paying very close attention. That said, how will you know? When the dot.com bubble burst, I was on a plane to LA to, ironically enough, do a pitch to investors for a dot com I was starting. Our plane had news tickers on every seat, and we watched helplessly as the market went down, down, down, down. We got off the plane feeling like we'd been kicked in the balls. Amazingly, we still got our funding, and the dot com is still in business today.

I guess the moral of the story is just what everyone else is saying...you gotta be in it for the long term. But pay close attention to the short term.

for a reason to move out of the market? Nobody in finance that I have heard is saying to get out now, 401k’s are up, the economy is strong, and the immediate outlook is positive.

I took heavy losses in 2002 and 2007, but I'm definitely ahead.

It all depends on what funds or stocks your 401k is invested in.

assignments and day traded every day during tech boom. Gained over 100% in 6 months. Then, called the stupid ass broker and said I wanted to move to cash. He talked me out of it. it then fell precipitously and I waited too long to unload. Still way short of what I had in 2001.

DOW will hit 30K this year. Silly to pull out now. The corporate tax cuts have most definitely made companies more valuable.

A reckoning will come, but it could be years off. Have to be all in th market right now.

I think there is an unreasonable exuberance in the markets right now, and I expect a significant correction. When? I can't guess. But at least a couple of my investments are reaching a maturity where stability will be more important than a few thousand bucks extra.

We've had a bull market for almost a decade, it's unprecedented. I agree it will go down.

My money is not subject to my political leanings, the corporate tax cuts are an absolute massive boost to the value of corporations. Massive tax liabilities removed means the company is worth more, period. Corporate tax cuts were honestly needed, but they also needed to eliminate more loopholes. Middle class tax cuts were needed too. Tax cuts for the lower middle class needed to be bigger. Tax cuts for the rich weren't needed at all and blow a hole in the budget, and that's what will ultimately lead to bad things for the economy. The Reps will cut programs and spending as a result and it will spell doom for the economy. But this could all be years away. Make the money in the market while you can.

I laughed at the Righties pulling their money out when Obama took office, they missed out on the best bull run in history. I laugh at the Liberals pulling their money out now, this market is not close to its peak.

is doing fabulous

into the 'conservative' area of the investment choices and hope he doesn't wreck it........

Goes out the window to me when we are living with a maniac unpredictable "leader". Makes me sick to think about how he achieved wealth and think about the story I read about how he just refused flat out to pay his new Jersey casino taxes. His mo was..."let them take me to court and I will drag it out until I bleed them dry with legal fees". And it works...NJ eventually dropped it...guess at breakeven

Nder obama it seemed the markets looked for any reason not to take off. Something in china or europe or the price of oil caused markets to hesitate. Every 3 months the fed would talk interest rates and that would cause the market to stumble. Now the sitting president talks nuclear buttons and the markets dont bat an eye.

My feeling is we are in a mania phase where avg people get stock fever causing the market to be artificially inflated. The minute it tumbles it will correct alot as those people panic.

Cautious...never boastful...always including caveats about how we are still not there yet. I love this about him...but doesn't create tons of market exuberance.

It's not nearly as interesting as sports betting but picking just one winner in Apple more than overwhelmed all the sports betting profit.

Now I also have lots of index funds and one boring bond fund. I hate the bond fund even though it's a very low percentage of the portfolio.

Bond funds don't do anything. It's like making a wager and getting a push.

I want a sharp decision either way. That's why I love biotech funds and the wild ride. Last couple of weeks have been up.

I had 500 shares which split twice before some idiot Republican investment guru who was overseeing my account back in the States said the stock was wobbly and should be sold if it dipped to under $190. This must have been ten years ago or so. It dipped to $189, and they sold it for me. It them went up to over $700, split 7 for one, and that little $19,000 investment I made in 1998 or whenever it was would have been worth about $2 million today if I had told those idiots to not touch my account. Take out capital gains taxes, and it still would have left me with a net $1.4 million. Easy come, easier go.

When Jobs returned. My dad helped me do it. I had no idea what I was doing. He helped set up a Roth IRA and also a brokerage account for me.

I wish it had been $19,000, like your investment. I could have afforded that much in those years. But it was coming out of my sports betting bankroll and naturally that seemed like a priority at the time.

I remember I had $58,000 sports betting bankroll in '96 when I invested the first $3000 in Apple. Obviously I've done the math toward what the $58,000 could have become if I'd dumped the whole thing in Apple and left it there.

But that was never even a remote consideration. It sounds cute now. I remember I spent about $5000 on new furniture and home stuff at the same time I invested in Apple. Too bad it wasn't reversed -- $5000 in Apple and $3000 in furniture. At least I still have the furniture. Good quality.

I sold some Apple in spring 2001 when I had a sudden financial need after a friend ripped me off. Fortunately I got back on track and reinvested in 2002, and then bumped it up some in 2003, largely because some guy with a froggy user name on this site persisted in ripping Apple and it ticked me off. I was convinced he was wrong.

My Roth is in really great shape. Kind of bizarre given how little I invested in it. These days I contribute the maximum $6500 every year and kind of screw around where I put it. I like risk so I have aggressive biotech and technology funds.

The brokerage account is the problem because my cost basis is so low on Apple. I have made some major purchases, like a townhouse when the housing market was at bottom. The appraisal has now doubled in value so that was a good choice. I am renting it out to a nice lady who never complains about anything. But wow do I get hit with the tax rate when I sell those old shares.

watch a football game so we went to sports bar in Venetian. Holy cow -
ended up spending whole day there since it was a hot time in college
football. From a simple bet to win to overs-unders - it was exciting
and seemed like such a better chance of winning than anything else
in casino.

From early 1984 to late 2008. I worked as sportsbook supervisor at the Horseshoe. I also worked with major betting groups. We would pool money and go around town searching for bargain lines on everything. One guy would be at home on the computer while a few of us circulated from sportsbook to sportsbook. It was a math oriented approach. Instead of picking winners we would essentially reverse the house edge in our favor, by collecting favorable numbers. That was '95 to '98 at heyday and it was the primary reason I had extra money to invest in Apple.

The Venetian is one of my favorites. I can't count how many times I dashed across the bridge to Treasure Island. That's when every sportsbook had its own numbers. I'd grab a strange number at Venetian and play it off a standard number at Treasure Island. Or the reverse.

These days the sportsbooks are not independently run any more. For example, those monitors in every Venetian sportsbook seat didn't use to be there. There was nothing in front of you except a blank counter space to hold drinks or paperwork, etc. People watched the games from those seats and had to walk to the counter to make bets. Nowadays that sportsbook is linked to others around the state and wagers can be made smack from the seats.

I realize that is convenient for tourists but it basically ruined matters for local wise guys. Instead of picking off one mistake after another from 45 independent operations, there are standard numbers everywhere in town and only perhaps 10-12 different organizations sensing out those numbers. Corporate mergers and technology ruined sports betting in Las Vegas.

The way I understand it, you can't actually cash in a 401k until you stop working, and since I'm turning 66 this year, that's probably 10 to 15 years away.

I think you are required to start taking it out at 70 1/2 or they penalize you

If that applies to the 401k as well, I have no clue. The Roth IRA requires that the taxes be paid up front, so the government doesn't care how long you wait on that, but the normal IRA requires that it be distributed at or by age 70.

Are you sure that the law concerning the IRA is identical to the one concerning the 401k?

You do have to take them from any other IRA's (Except Roth IRA's) but you do not have to take them from a 401(k).

I converted to the Roth IRA in 2009, when the Bush recession had devastated what stocks I owned in my IRA, paid the taxes due at the time. Now, under U.S. law, the gains I have made are free and clear of further taxes--except that a Roth IRA is not in the Double Taxation Treaty between Germany and the USA (enacted after the treaty was negotiated, and thus not provided for), and the Germans are making noises about wanting to tax it AGAIN, even if it appears illegal to do so. The treaty does say that a US citizen, residing in the USA (I was still a legal resident in 2009), paying taxes on income in the USA, cannot be taxed on it again in Germany. Except when the Germans decide they want to do it anyway, apparently!

You need to begin taking distributions at 70 1/2. You don't have to remove the entire amount.
I believe you can begin taking distributions at 59 1/2. Of course, it's taxable, since it was non-taxable during the year you invested it.

There is a minimum distribution, but it's a small percentage of your account. If you take money out while you're still working, there's a chance that it will be taxed at a higher rate, if it bumps your income into a higher tax bracket.

I'm not an expert, but I have an interest in personal finance and read/listen a lot. People should check out some of the excellent podcasts on retirement.

RMD’s do not apply to a 401(k) if you continue to work

There is an inherent contradiction in being forced to start taking distributions at age 70 and being penalized for still working at age 70. If I get taxed in both the USA and Germany on the same income, that leaves me paying the IRS 39.6% and the Germans 50%. They are already trying to do that with my S-Corp income. For ten percent left over, I'm better off leaving the whole thing to the American Cancer Society.

"Let me tell you how it will be. That's one for you, nineteen for me. 'Cause I'm the taxman."

There were dozens that posted here that were convinced that the stock market was going to plummet the day after the election. Said they & everyone they knew was going to sell and only a fool would stay in

Between that and all those that insist that 401k are a scam, this is the last place I would take investment advice from

someone says "my broker told me..." We were talking about this
last night. I want to do more research on what the specific signs
are that may appear before a crash. Like who is selling. I know,
still a crap shoot but better than blind. I always stop and think
- when a broker recommends an action - what's in it for him/his company.

keep this market afloat, not POTUS elections. There is really no place else to put your money if you want more of a return than 2%. At no time in history have we had a run of such low interest rates as we have had during this run, and it has changed traditional market dynamics in the way we have been taught to think about the stock market.

Beware of a rise in interest rates, savings rates in particular. That’s not to say there won’t be a correction though, at some point, it has to come. The value of businesses is not infinite.

I am all in stocks and it’s been incredible. The problem is, if it keeps going up like this and economy improving, trump may win reelection. Don’t be silly, trump will never get impeached. We all know this. Tax scam is very effeftive in creating a bubble. Move all into fixed income around 2020 and wait for a big crash. Then move eveything back into stocks.

If you lost so much in 2002 you are still behind then you are in things that are too risky. Just pick some mid cap index funds and you would have made multiples of whatever money you had in 2002 by now.

Also when you say you are ready to move it all to cash....that is the exact WRONG thing to do, at any time and pretty much any reputable study on the stock market indicates people are much more successful dollar cost averaging and keeping their money in during crashes than they are trying to time the market and selling out of fear.

in 2002? The market has tripled since then