401K Stocks vs Bonds In This Volatile Russian / Ukraine Market
Hi Terry, I am 55 celebrating my 36th year with my company and have a work Fidelity 401K account. I’ve always been an aggressive 70% stocks / 30% bonds portfolio. I really wish with all the world issues in Russia / Ukraine, and now worried about China invading Taiwan I would have considered being not as aggressive with my age and 3-5 years before considering taking money out.. Should I consider being less aggressive, or is it too late and ride this Bear Market out? Again, I am 3-5 years from considering taking 401k .
Thank You in advance for your advice…
Terry Says
Well, if you’re still working for your company, you don’t have the choice of taking the money “out” — either in cash or as part of a rollover. What you must do is look at the most conservative choices WITHIN your 40l(k) as long as you are still working there. Hint: the Target Date fund might NOT be the most conservative. Yet there are few conservative choices, such as a money market fund inside these plans because they are designed for people to work and grow their money over the long run.
So do the best you can to diversify inside your plan given the choices they offer. And remember, you have at least a 30+ year life expectancy, so you need exposure to stocks to offset inflation in the long run.
