Main St not so good, but Wall Street is loving life

[baldgriff]

I can move to a "Stable Asset" type fund. I dont believe that I have any option to hold in "cash/money market" in my employer sponsored 401k plan.

[baldgriff]

Here are my options.... I can reallocate my balances to these:

Asset Class
Fund
GIC/Stable Value
Wells Fargo Stable Value Fund
Bond
Shenkman High Yield Bond Fund
PIMCO Total Return Fund
Balanced
Oakmark Equity & Income Fund
PIMCO Global Multi-Asset Institutional Fund
Lifestyle/Pre-mix
JPMorgan Smart Retirement - Incm
JPMorgan Smart Retirement - 2015
JPMorgan Smart Retirement - 2020
JPMorgan Smart Retirement - 2025
JPMorgan Smart Retirement - 2030
JPMorgan Smart Retirement - 2035
JPMorgan Smart Retirement - 2040
JPMorgan Smart Retirement - 2045
JPMorgan Smart Retirement - 2050
Large U.S. Equity
Vanguard Institutional Index Plus Fund
Dodge & Cox Stock Fund
T Rowe Price Growth Stock Fund
Allianz NFJ Dividend Value Fund
International
Dimensional International Value Fund
Small U.S. Equity
QMA Small Cap Equity Fund

[hacko]

the money I moved was in my 401K and just got reallocated from a Growth Fund to Stable Asset. it took about a minute, and I think it will be effective tomorrow.

I just did the same with all my 401 k. Let it sit in the stable fund for a while. I know I lost a pretty good chunk of change on the last big adjustment. Good news is I got it all back and then some. Better news is that is when the ex - wife decided to move out so I got to show exactly what was in my fund during that period. In the end in the divorce with that big hit she ended up not getting 1 penny of my 401 k.

[revo]

This is a great lineup of funds. I love the JP Morgan Smart retirement target date funds, and you have a lot of other great funds here (Dodge & Cox Stock, Allianz NFJ Dividend)

The Wells Fargo Stable Value Fund is your GIC/Money Market fund, which is your "cash" option. If you feel a market correction coming on, then exchange all of your funds into this one and make sure you change your future contributions to this one.

[Judge Jude]

lol

Am curious if all the gloom and doom about SEQUESTRATION (which could still come to pass down the road) led anyone who buys into that argument to cash out for that reason - and when.

Again, I'm making a modest adjustment against the current highs sustaining myself, but if one greatly feared the S word, wouldn't it make sense to have bailed before the (not yet realized) tidal wave?

I understand that economists were less "sky is falling the day after S Day" then liberal politicians were, but I guess the question is whether political arguments sway personal retirement plan decisions.

This one doesn't really hit the right as much, I think, because I'm assuming no one thought that S word would create a monster bull market, would they (well, maybe they think longterm it will?). I imagine they just held their ground.

[revo]

lol

Am curious if all the gloom and doom about SEQUESTRATION (which could still come to pass down the road) led anyone who buys into that argument to cash out for that reason - and when.

Again, I'm making a modest adjustment against the current highs sustaining myself, but if one greatly feared the S word, wouldn't it make sense to have bailed before the (not yet realized) tidal wave?

I understand that economists were less "sky is falling the day after S Day" then liberal politicians were, but I guess the question is whether political arguments sway personal retirement plan decisions.

This one doesn't really hit the right as much, I think, because I'm assuming no one thought that S word would create a monster bull market, would they (well, maybe they think longterm it will?). I imagine they just held their ground.

You can't use qualified plan assets (without penalty) until at least age 59 1/2. It's seems pretty silly in the long run to get out of the market over a miniscule blip and potentially miss out if you don't (or fail) to get back in. These amateur market timers do far more harm than good to themselves.

[Judge Jude]

Thanks, Revo, I think that as well, obviously.
But couldn't they have moved their 401Ks out of the 'risky stuff' and into Stable stuff a few weeks back?

It's not a big deal financially either way so far; I just am asking from a philosophical perspective. If you buy 'sky is falling,' isn't it sensible to back away and play it safe, if that's your mindset? I thnk Hacko has done that, basically, and I get it. Same as he gets me making only a minor shift.

I'm just wondering if people say they buy into political rhetoric yet don't shift their portfolios.
I do see from your comment that maybe longterm buyers expected a big hit quickly, but figure it will work out in the end - and they could be right on the overall scope even if missing their perceived short-term hit.

Trying to learn how people make these calls - I move my numbers pretty minimally and rarely, but I'm a boring moderate anyway (and I have a lifelong buddy who is a CFP who gut-checks the rough pcts for common sense).

It has not occurred to me before whether diehards on left or right do (or should) move their money to match their expectations based on politics....

[revo]

In the last six months alone, we've had the Sequester; the debt ceiling; the fiscal cliff; and the actual election itself. All four events were reasons for some (read: conservatives) to fear being in the market. All four passed by with nothing more than a hiccup. If you exited the market on any of those occasions (or all), you blew it. Royally. If you're not a pro, don't be a market timer.

I did a seminar last week in midtown, and a woman I'm meeting with on Friday told me she was "scared" about the election and exited the market. I told her if she felt the same in '08, she missed out on a 100% gain under Obama. "Oh yeah" she said.

People get influenced by their political idealogues, who are usually out to only get ratings. It's pretty sad, actually.