Posted on 08/06/2009 9:32:49 AM PDT by Oshkalaboomboom
I have a 401k in a Vanguard stock fund that I would really like to get out of. I rode it up over 12,000, rode it down all year and now I'd like to cut my losses before it takes another dump. What other Vanguard funds are safer, or even a money market? I can't just cash it in or the government would slaughter me at tax time. What's a safe haven to ride the coming depression out?
Bank of Sealy .... no I am not kidding ...
precious metals...mainly gold.
Oh boy, this is gonna be a good thread...pass the popcorn and kool aid.
I’d second that.
I know a very rich person who has cash stashed in lots of foreign countries - 100k here...100k there....a bunch of it.
Not that this would work for a 401k but I thought it was an interesting view of what something thinks about our current state here in the US.
Selling now before the market tanks big-time is a good idea, but if the Vanguard fund is in a 401k there is no tax event until you start withdrawing from the 401k.
Stick 8% of it in an ultrashort ETF, such as SMN
(disclaimer: I have an exposure to SMN.)
Depends on your age, how the money is invested and what your plans are for it.
Fear is not an investment plan.
Suggestions: A little in a precious metals funds would be prudent as a hedge against inflation; an equity income fund with strong stocks sporting good balance sheets and dividends; a short-term bond fund due to inflation fears.
My experience with fear is, generally, a good signal to buy instead of sell.
Don’t worry, be happy. :)
You’re in luck, FRiend!
I just started a mutual fund this morning! You can be my first investor. Our investment strategy is... oh hey, why bore you with that financial hocus-pocus. You’re gonna do great. Plus, due to the return on your investment, your income taxes will be REALLY LOW.
Just send me a check and we’ll get started.
Fertile land.
bump
Diversify as much as possible. Most 401Ks give you many engines to put your money in. Split what you have among bond funds, stocks, cash value funds, commodity funds, etc.
Gold, Silver, Foreign Stocks, Foreign Bonds.
Again, I post her PURELY for political purposes, and not to advertise!
Where Should I Put My 401k Money?
Ammunition.
I’d go with a money market fund.
Precious metals such as lead and brass.
If you believe we are heading into a depression, look at government bonds, both domestic and foreign.
If you believe the economy will recover at a sluggish rate look at TIP bond funds.
Whatever you decide don't buy and forget. We are in a volatile financial environment period. Keep your financial sneakers on at all times.
at the current prices the market is probably overvalued. Not crazy to think of selling here, but you have to remember to buy if it does go back to the levels of March. The market was truly cheap then, and very few people managed to buy since they were so scared. (me included)
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