401k — stocks or money fund?
don’t feel safe about having my 401 in stock market. Friends have recommended moving it to money market fund ,i value your opinion. Please send me response.
Terry Says
Gosh, I’ve never been good at calling market direction. I know that over the long run — at least a 20 year period — you’ve always come out ahead investing in a diversified stock market portfolio like the S&P 500 stock index (fund) with dividends reinvested. That’s true for every 20-year period since 1926.
But that doesn’t do you any good if you have a heart attack watching the market crash sometime WITHIN that 20 year period!
So I suggest “selling down to the sleeping point” — which depends on your age, your financial situation, and your self-discipline. Maybe 50/50 — stocks and money market fund?? Thaqt way you’ll always be glad you did what you did — in hindsight!
