Strategy for Economic Downturn
I heard that your advice for babyboomers (in or close to retirement) is to move their investments to less risky instruments to avoid the pending downturn in the economy.
What should we do?
My wife and I are in our early 40’s. We have a 12 and 7 year old. We would like to be able to pay for college at a 4 year university.
We earn $115,000/ year and we have rental properties that net an additional $24,000/ year.
* $50,000 in a savings account
* $24,000 in a 529 plan
*$204, 000 in Retirement accounts (mostly Roth)
Should we ride the cycle down or move a percentage of our funds to bonds/ gold?
I hope this is enough info for you to provide an answer.
Terry Says
You gave me a lot of information, but I still don’t know enough about your situation to give you good long-term advice. You’re doing a great job of saving on your income, and of investing. I believe in America over the long run, and I believe that long before you are going to need your retirement funds the market will rebound and move to new highs.
So I would stay the curse, and keep making regular investments in your retirement plan. Over the long run, at least 20 years, you should come out far ahead.(I can’t say the same to retirees, who are needing to withdraw now and in coming years, and can’t afford losses.) just promise me not to panic and sell at the “bottom” — panic selling is what MAKES bottoms!
But you might want to make the most conservative choices in your 529 account now — since you will need that money in about 5 or 6 years.
