401k adjustment into bonds?
I am 64 and will be retiring in 5 1/2 years. My husband is not currently working. We do not have any debts but will only have SS and my 401k to live on. I have about $210,000 in my 401k in Fidelity Freedom 2025 K fund (FSNPX). I heard you this morning on WGN and am thinking I need to do something to protect my fund. I could move 50% into a bond fund available in the 401k. They have Fidelity Total Bond (FTBFX) or Loomis Strategic Income Fund Class N (NEZNX). Does this sound like a good move to protect myself from this market loss? Would 50% be enough?
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Terry Says
At this point, stick with your current investment choices. It is likely the most conservative one in your plan, unless there is a money fund alternative. Bond funds will have their own problems. Go to my website and read my recent column: Beware of Bonds. I hope you have some other savings outside your plan, and you might want to plan to work longer.
