Posted: 1/21/2008 1:57:55 PM EDT
| I am currently investing in my city's 457b retirement plan. I have a separate state retirement plan as well. For several years I have been putting a large portion of my pay check into this 457b weekly. My question is, with current market trends, would I be better off putting less into my 457b and more into my money market until we reach a bottom in the market? When the market begins to turn around I could move the money from my money market into my 457b. I know that there are alot of hypotheticals involved with what I am proposing. Thanks in advance for any advice. |
We're in the same boat Sarge. I've been making some moves in my 457b lately. (Against the advice of our account manager  ) I've moved a big % of my stuff to overseas funds but I'm still socking it in. I'm gambling that what I keep domestic will rebound before I retire in 11 yrs at 50. If not, so be it. The overseas and tangibles will make it on the other side. Ed |
put more of your 457b contributions into equity funds, and less into money market funds. you are not going to get an email one afternoon saying "alert: bear market is over, start buying". in 30 years you will thank me profusely for this advice. ar-jedi |
Unless he's planning to retire in the next 10 years. In that case, now may be a GOOD time to be protecting assests. Hard to say without knowing Sarges age and plans. |
at any age, one should have a gradually sliding asset allocation (equities vs bonds/cash) plan figured out. then, you should stick to this plan. it will assist you buying low/selling high via periodic rebalancing. for more info, read Ferri, "All About Asset Allocation". ar-jedi |
I may only work 4-5 more years in the public sector before I retire and possibly enter the private sector. I would like to see my 457b double in the next 10 years, but I need to push it into more conversative options such as the Vanguard Total Bond Market Index. 
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In other words: you want to stop buying equities when they are cheap, and start again once they start to cost more.  But low, sell high bro. Equities are on sale right now. |