Common trend at my work is people just putting their whole 401k into cash… Curious if others are seeing the same thing?
It almost seems a tad too late don’t you think?
Can I use that as a indication as we are close to bottom??
Better than suffer another 20-30% drop. It is better miss a 10% rally than suffer another 20% drop.
Two words: Asset allocation.
ws Wrote: ------------------------------------------------------- > Two words: Asset allocation. has anyone started a brokerage account within their 401k? specifically Fidelity? I’d like to get access to some ETFs but we only have like 10-15 mutual fund options in our choices. Looked at the website, and couldn’t figure it out.
Your company need to ask fidelity to establish a “brokerage link” for etf investing in your 401k My company said they don’t do it to “protect us”. What crap…They rather us down 36% then give us choices. The Dow and S&P 500 were at record highs nearly one year ago. Respectively, they are currently down 34% and 36% from those highs.
yeah under my investment options, brokeragelink is listed but when i tried to transfer money from a mutual fund, it was listed as an excluded account that I couldnt choose to transfer into. not sure if this means my company doesnt actually give us the option, or i havent set it up right. I should probably just call them
PtrainerNY Wrote: ------------------------------------------------------- > > The Dow and S&P 500 were at record highs nearly > one year ago. Respectively, they are currently > down 34% and 36% from those highs. Actually the high for the Dow was 1 yr ago today
Very dumb unless they are retiring next year.
At least you guys have brokerage option under your 401K plan, I am stuck with MF, little hard to build a diversified portfolio.
Brokerage link can mean a company allows stock, etf, mutual fund. It could be one or all 3.
What exactly is the brokerage link for the 401k plans through fidelity?
Brokerage link is a must. How can you possibly put together a portoflio with the a la carte BS mutual funds offered by most companies. I would not work for a firm without a borkerage link option. I love brokerage link.
I’m too young be to moving into cash in any large capacity. I’ve actually positioned a large portion of my allocation a PIMCO fund, but I’m down bigtime. I’m contemplating shifting assets from the bond fund to more aggressive sectors since everything has taken such a beating. Over a horizon is 40 yrs, I’m sure it’ll be worth more than it will today…
equity_analyst Wrote: ------------------------------------------------------- > Brokerage link is a must. How can you possibly put > together a portoflio with the a la carte BS mutual > funds offered by most companies. I would not work > for a firm without a borkerage link option. I love > brokerage link. how can you tell for sure if you have the option? under Investment Choices and Research it says : Other Investments BROKERAGELINK N/A N/A N/A N/A N/A N/A When Clicked: Fidelity BrokerageLink®: A brokerage account within your workplace savings plan that has been set up to offer a broader range of investment options. You can transfer assets between your standard plan options and BrokerageLink, as permitted under your plan. I can’t find anything about actually activating this or setting it up. Does that mean I don’t really have it?
Are you sure you are in the right program? If I pay 3000 today and get 3500 in 30 year, sure it’s up. But their is a time value of money… It’s also important to look at the fundamentals. It’s up to you what you do. But do it based on the fundamental and time value. Doubling down without considering all cases can be very good or very bad. ymmt Wrote: ------------------------------------------------------- Over a > horizon is 40 yrs, I’m sure it’ll be worth more > than it will today…
You still have to open the borkerage account and sign the paper work. I would call Fidelity directly, you could have this setup rather quickly. I direct all my contributions to go into my brokerage sweep. It’s nice to average in a 100% return with your losses every month!
The argument for cash is that if you can miss a further drop to the bottom, you can preserve your capital better and then re-enter when things start to move up. That assumes two things 1) you know that there is a further drop, and 2) you can identify the bottom a) after it happens and b) before the market recovers to the point where you sold. If you’re confident of 1) and 2) then it makes sense to go to cash. Also, if you’re mostly confident of 1) and 2) an alternative is to increase your cash allocation rather than go all or nothing. Item 2) is trickier than item 1), I suspect. The further down you fall, the more likely another fall may appear (brain chemistry at work). The argument for staying in is that a very large portion of long term gains (and losses) are concentrated in only a few daily outliers in the historical time series. If you miss these large outliers, your long term gains/losses are going to be substantially lower. Here there are two points 1) when you’re in cash, you are more likely to miss key upswings, and 2) volatility clustering suggests that these large outliers will tend to follow large outliers in the opposite direction, so you will probably get the biggest upbounce after a large downfall. So going to cash immediately after a large drop is probably not a good idea. Increasing your cash allocation (but not go all or nothing) might make some sense until you feel that some key indicator of turnaround has happened (decide on your indicator very soon, though). In my book, going all cash really only makes sense if you are truly clairvoyant, or you think the chances of a large run on banks is going to make cash actually disappear if you’re not first out the door.
equity_analyst Wrote: ------------------------------------------------------- > You still have to open the borkerage account and > sign the paper work. I would call Fidelity > directly, you could have this setup rather > quickly. I direct all my contributions to go into > my brokerage sweep. It’s nice to average in a 100% > return with your losses every month! thanks, figured i’d have to call, any idea how quick is quick? could i have it set up by Monday if I called tonight?