at what point do you move your 401K/403B into all bonds?

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[ARCHIVED THREAD] - at what point do you move your 401K/403B into all bonds?

Posted: 3/16/2020 8:01:51 PM EDT

Title asks the questions.

Is this a valid thing to do in a declining market?

I've always favored bonds, and some of them get fair returns - nothing of course like the stock market has done lately. But is there a place, to move retirement to mostly bonds - I'm not talking about when you are close to retiring, but rather, when you see that the market is going down and might lose more. Of course, you may lose gains if it goes right back up, but that is a risk. You can always move it back.

Posted: 3/16/2020 8:10:25 PM EDT

[#1]

It's too late now. Hold fast and ride it out.

If you have a solid and well diversified portfolio, eventually things will be back to normal.

Unless you are still heavily in stocks and plan on retiring soon. That is a problem.

Posted: 3/16/2020 8:12:37 PM EDT

[#2]

If you touch it you have lost it all. Let it ride.

Posted: 3/16/2020 8:25:29 PM EDT

[#3]

Quote History

Quoted:
If you touch it you have lost it all. Let it ride.

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Why is this? I understand about letting it ride, and eventually most markets will swing back up and recover, even if this takes years. But why would it be wrong to actively manage your own holdings. Is this b/c most folks wouldn't end up transferring back over to stocks when the market starts to head back up?

Posted: 3/16/2020 8:32:56 PM EDT

[#4]

Quote History

Quoted:
If you touch it you have lost it all. Let it ride.

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It's not the ups and downs that hurt you when riding a Rollercoaster, it's when you try to jump out.

Market is down. It will likely recover. Why would you move everything over now (sell low) and then move everything back later (buy high)?

Posted: 3/16/2020 8:38:49 PM EDT

[#5]

Quote History

Quoted:
It's not the ups and downs that hurt you when riding a Rollercoaster, it's when you try to jump out.

Market is down. It will likely recover. Why would you move everything over now (sell low) and then move everything back later (buy high)?

View Quote View All Quotes

View All Quotes

Quote History

Quoted:

Quoted:
If you touch it you have lost it all. Let it ride.

It's not the ups and downs that hurt you when riding a Rollercoaster, it's when you try to jump out.

Market is down. It will likely recover. Why would you move everything over now (sell low) and then move everything back later (buy high)?

Gotcha - So if you could do it near the top (already passed now) it would have been ok.

And of course you wouldn't have to do it all, maybe a percentage. I think my 403b already has a decent percentage in bonds anyway.

Posted: 3/16/2020 8:56:56 PM EDT

[#6]

I think the saying is something like "buy low, sell high". It's not rocket psychiatry.

Posted: 3/16/2020 9:21:31 PM EDT

[#7]

About two months ago.

Posted: 3/16/2020 9:58:12 PM EDT

[#8]

Depends on when you plan on retiring. You should be shifting out of stocks 15 years before retirement. At 10 years you should be about 50% stock and at 5 you should be 25%. Look at extended business cycles and you'll get an idea of a better timeline. Bonds aren't perfect, there is risk. I got completely screwed by the feds with GM. Munis are easy but even cities file bankruptcy on occasion.

Posted: 3/17/2020 3:00:31 PM EDT

[#9]

Depends on when you begin to need cashflow. If you have other sources of income and don't need the interest cash payments right away then you can hold off and take the stock growth. Convert on a slower timetable.

As for munis, I only invest in large universities like Michigan and Michigan State. They aren't going away and their endowments are stuffed to the max. I also try to look at bonds below par so when then are called in it's at full par price.

Posted: 3/19/2020 12:48:04 AM EDT

[#10]

I can't remember who said it, but it goes like this "If you don't know what to do, don't do anything." This statement was made concerning investing.

Unless you think things are going to go way down further than they are right now and you want to preserve what is left, the answer is yes. If you are somewhat confident like most people are that it will eventually recover, then don't do anything.

I just retired last month while the market was peaking and I moved into maintenance mode meaning low risk, but low yield in order to maintain what I have built up over the last few decades. I am so glad that I did because instead of losing about 30% I've only lost about 7% so far.

Posted: 3/19/2020 1:04:17 AM EDT

[#11]

The Obama economy was shit and would have likely stayed that way with another leftist to take his place. Your optimism that a full recovery will occur are awfully cute.

Posted: 3/19/2020 1:30:47 AM EDT

[#12]

Quote History

Quoted:
The Obama economy was shit and would have likely stayed that way with another leftist to take his place. Your optimism that a full recovery will occur are awfully cute.

View Quote

Go pull a historical chart of the market and show us that a full recovery and growth isn't 100% likely.

Don't worry. We'll wait.

Hint. You can't. Its never happened. It always recovers and goes up. Unless you don't believe in the fundamental stability of the country. In which case, why the hell are you here instead of your fallout shelter.

[ARCHIVED THREAD] - at what point do you move your 401K/403B into all bonds?

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