When do I put retirement $ out of stock market and into something w/less risk? Want to retire in about 12 years
Hi Terry. I hope you are doing well. Im 53 and have about $400k with Vanguard. $50k in META and the rest mainly with Vanguard total stock market. I will work until at least age 65. Divorced with 3 kids. I have a mortgage and owe about $400k on it. When should I move some of my retirement out of the S&P and into what please? I don’t have other assets and need my
retirement in older age. I don’t have chicken $ either. I’m a self employed attorney. Thank you and I hope you are having a wonderful day!
Terry Says
Ok, you have asked the $9 trillion dollar question! That is the amount of assets in 401(k) plans.
I can assure you that no one wants tolose a penny!
Over the long run — at least 20 years — there has never been a losing period for the stock market — a broadly diversified S&P 500 stock index fund with dividends reinvested.
And you do have a 20 year time horizon until you must start withdrawing. So based on that, someone might advise you to stay fully invested in stocks.
BUT, that’s easier said than done — especially when the market is falling. Human nature says you will panic and sell out just at the wrong time!
In fact, that’s what makes market bottoms!
So I suggest you move about 30% of your 401k into the most conservative choices the plan offers — such as a short term, very short-term, bond fund.
AND you should immediately start building up a lot of money outside your retirement plan in CDs or a money market account. That will help keep you from selling ina panic.
This is broad based advice. If you want to find someone you can trust — a true FIDUCIARY— to review your investments and retirement planning, please read this:
https://www.terrysavage.com/pam-krueger-wealthramp//
