So, with 401k and 403b mutual fund investments, where does one move the money?
I’m not comfortable with bonds any more and money market funds will not be immune to a 50% drop.
Does Fidelity have a cash position with tax-sheltered funds?
Convert some of your cash to another currency.
Where you put your 401k and 403b money, depends on which funds your employer has made available to you under your plan.
I have gradually moved out of bonds the past couple years. With interest rates near zero, there is only one way for them to go. The Fed can’t keep the interest rate artificially low forever, and when interest rates begin rising again, the share prices of your bond funds will tank.
You can move more money into cash (your plan’s “money market” fund), although under the current interest-rate environment, you lose there also with the dollar devaluation and inflation.
You might have an “inflation-linked” bond fund, but these are susceptible also to the inevitable rise in interest rates. Moreover, the inflation rate is defined by the BLS CPI, which is bogus, as it does not include energy and food prices (”Too volatile.” LOL).
Your plan should have some international funds. You could diversify and hedge against a dollar collapse by investing in those, although many foreign central banks are printing money like crazy also.
If your plan has a real-estate fund, you can hedge against inflation that way. These have been doing well the past couple years, but much of the recovery in real estate prices has been due to the Fed’s easy-credit policies (read: another RE bubble brewing).
If you’re lucky, your plan will have a precious metals fund or something like that, although I’ve yet to see a 401k/403b plan with that option.
All this to say, I have no idea what you should do with your 401k/403b money. The best advice is probably to diversify as best as your plan allows.
Good luck! Hopefully when SHTF, you won’t lose too much of your principal, so that when Obama confiscates our retirement funds, you’ll have a nice little nest egg there just waiting for him to gobble up.
Past happenings don't guarantee future outcomes. That said, Fidelity and and Vanguard money market funds didn't break the buck during the last stock market melt down..
Look at bond funds.
Mine are doing better than the market.
Back in December I made changes to my 401K and am currently weighted 70% money market and 30% stock funds. I’m second guessing myself a little, but my gut tells me the market is really overvalued right now. It’s been torture watching the market climb while sitting on the sideline.
I’m the furthest thing from an expert, but I went with my gut during the last crash and did the same thing when the DOW was around 12000; jumped back in when it came back to around 8000 and did really well. I have no idea what to do right now.
About a year ago, I left my IRAs with the same funds, but had them moved into the Money Market accounts. It's a low (almost zero) interest deal, but if the market tanks the money stays the same (like your bank accounts). I took the 2 previous hits and even when things got back to the "same" levels, I was not only below where I started, but substantially below where I expected to be - can't take a 3rd hit like that at this time of our lives.