Home > General Topics > Trading > 401k / retirement account

401k / retirement account

  1. Last friday 2/2/18, I saw something bad with the technicals and moved all my money in my 401k in both my vanguard and fidelity account which is in a target date mutual fund and s&p etf into money market account. I plan to remain in cash until I see a signal to buy back. It could be days, months or year. So far I saved myself the 10% drop from its high, where as my work colleague just told me he is down $100k from his retirement account since last week.

    so just getting opinions on what you guys are planning to do with your retirement account/401k since the market correction and a possible of a bear market?
     
  2. History shows if you are at least 10 years away from retirement (or need to use the $), you should stay put.

    The problem is you never know when is a good time to get back in the market. Google some research about timing the market and moving in and out of the market. The statistics is against you.
     
  3. man save your mumbo jumbo warren buffet "buy and hold" strategy for someone else. I gave up fundamental last year when I learn TA and swing trading. Beside my 401k, I have 3 separate account: traditional ira, roth ira, and regular. Who said you can't time the market? I time the market all the time and I would say I'm successful at it. I have sold off all my mutual funds in those 3 accounts and trade stocks and etf now. I do day trade and swing trade in all those account in US equities. I'm in mostly cash now since last week.

    I trade based on my signal, chart, price action, momentum, following trend, support and resistance line. I don't use moving averages, or other indicators. I don't do penny stocks, options, cryptocurrency, derivatives, margin account. I don't listen to news, follow any gurus, follow anyone from chatroom or forum etc. I'm an independent trader and profitable now.
     
  4. Hello vincentnyc,

    That is tuff question to answer cause it really depends on your age. If you are young, there is not need to do anything. If you are older and near retirement, it makes a little sense to get out the market and be safe, I guess. But if older you should not be invested that much in stocks anyway. IMO

    If your 401K is in Vanguard Target Fund, there is no need to panic or do anything because the Fund is already asset allocated per your age and require risk.

    There is no reason to move assets around in 401K if you are properly allocated.
     
  5. You already saved yourself a 10% loss, well done.
    You should put some back in soon (maybe 20%) tomorrow/Monday and then piece back in as you wish, unless you really think another 1987 day or 2008 year is coming.
    But the previous poster was right. If you try to time the markets you will ultimately underperform.

    BTW- I went 100% cash second week of December. Felt like a jackass for a month or so. I’m going to start adding small next few days just to get something back in.
     
  6. To vincentnyc,

    Note that my statement says statistics is against you.

    Maybe you are one of those geniuses who defy statistics. That definitely happens, as clearly shown in the Market Wizards.

    I am a layman and my buy and hold strategy served me well. My 401k account dropped over 40% or higher during 2008 crash, but I stayed in the market and continued to contribute to my 401k at 100% stocks (S&P 500). Hey, stocks were dirt cheap at 50% discount.

    Now you know what happened afterwards. To this day I still couldn’t believe my 401k balance. :) And the beauty of it is I didn’t kill a single brain cell to achieve this. ;)
     
  7. who said I will remain in cash forever? I will put my money back into etf/mutual fund when I see a signal to buy based on my criteria.
     
  8. vincentnyc,

    Most people do not trade their 401K, they just average in whenever they get paid. If you do, do at your own risk.

    It seems like you already know what do with your 401K, just follow your signals to buy and sell your 401K as you see fit.

    I am not doing nothing with my 401K, I haven't even check it in 2 years for a re balance. I want be retiring until 26 years from now. lol
     
  9. I haven't touch my vanguard/fidelity since the last 10 years also. But since i learn ta and swing trading last year. I will put it to good use. No way I'm holding this time like back in 2008 where the market went down 50%. No way this time. F the wall street guys. They ain't taking my money this time.
     
  10. EXACTLY, well done!!! There is nothing to do with a 401K if the market rise or fall except buy more cheap stock assets and this take about 5 minutes in 401, then go back and watch TV or back to trading.

    I have no idea why anyone would waste their time trying to time the market with their 401K. Too much risk for so little returns just to save 10%, then have sleepiness nights trying to decide when to get back in. I am not playing with my retirement money. Just doesn't makes sense. Buy and hold and keep on buying and holding.
     
  11. s&p ytd 28%. last week and this , s&p drop 10%. it took 1 whole year for s&p to go up 28% and within 2 week it drop 10%. for ppl that has large amount in their retirement like my colleague. that is alot of moola.
     

  12. If you simply held through it you would’ve doubled your money anyway since 2008. You only lose 50% if you cashed out at the bottom and chased the way back up.

    I’d look to start averaging in if we keep going down myself if I was cashed out.

    Depending on how close you are to needing the funds.
     
  13. To those who say you can't time the market. If we're talking about a free market without government / central bank intervention, I completely agree. However, we don't have that. If QE and crazy low / unnatural interest rates made the market go up, won't quantitative tightening and higher interest rates make the market go down? I agree with Jeff Gundlach.
     
  14. Sorry, but I don't understand you. You ask others for what they would do with their retirement fund. Someone replies and gives his opinion. You respond by burning that person to the ground for voicing an opinion which is different from your own.
    If you don't want to hear opinions which differ from your own, why even bother to open this topic?
     
  15. I’d rather go cash in a 401, but this will bounce for a bit on the decline.
    It always has and always will, it’s a staggered decline. You can’t scare retail like the past few days and keep them in the market. It will bounce, but I warn you... they are going to get their money.
    It’s your choice to catch the falling knife.
    I wouldn’t do it.

    I’m loaded on my directional positions shorting indices, and I do have a few bond trades in there. Not hard to see where it’s gonna go.

    But.....what do I know?
     
  16. Thank you, my thoughts exactly. The OP does not want opinions, he wants to debate his belief. OP seriously need to take his question to boglehead forum where 401k is discussed allllllll day. They can help much more then we can.

    Put the poll up there, everybody will say Doing Nothing.
     
  17. ha! Bogglehead is full of investor that follow buffet buy and hold strategy. Obviously they got brainwash into following the so call value investing. I don’t believe in none of that crap. I’m a trader. That’s why I post it here.
     
  18. Buy and hold investing and value investing are two different things. One could buy&hold growth fund and ETF's too