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moved my 401k from stock funds into bond funds...thoughts?
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Date: March 23rd, 2014 1:19 PM Author: Self-centered Passionate Idiot hedging against a downturn in the overall stock market...what was surprising was that the bond fund has the same expense ratio as the money market fund available under my 401k plan, even though the bond fund will pay comparatively significant interest. any better way to play this out for now? (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243760) |
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Date: March 23rd, 2014 1:21 PM Author: Indecent Coral Patrolman Volcanic Crater how old are you?
this is nuts. interest rates will rise, and you're gonna be fucked. just make sure you're diversified among equities (small/mid/large, significant international exposure, etc.) |
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Date: March 23rd, 2014 1:26 PM Author: Self-centered Passionate Idiot have about $160k in stocks in a non-401k brokerage account. just worried about the 401k money sitting there and getting eaten by fees while the market moves sideways or, worse, down. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243788) |
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Date: March 23rd, 2014 1:28 PM Author: multi-colored station corn cake you've got it backwards. you should be more aggressive with your 401k than your non-401k because that's money you definitely don't need for decades. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243795) |
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Date: October 14th, 2014 11:46 PM Author: bateful magical principal's office This is my thought process since I have an extremely long time horizon for my retirement accounts. I have a 5-10 yr time horizon for my taxable accounts to buy a house. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26518385) |
Date: March 23rd, 2014 1:19 PM Author: slate location You will be fucked in the A when interest rates rise. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243763) |
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Date: March 23rd, 2014 1:20 PM Author: Dashing Misunderstood Digit Ratio what? this would be good for someone holding bonds (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243766) |
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Date: March 23rd, 2014 1:21 PM Author: Indecent Coral Patrolman Volcanic Crater lol (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243770) |
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Date: March 23rd, 2014 1:22 PM Author: Dashing Misunderstood Digit Ratio :) (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243777) |
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Date: March 23rd, 2014 1:22 PM Author: slate location https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/relationship-between-bond-prices-and-interest-rates (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243779) |
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Date: December 23rd, 2014 2:51 PM Author: razzle mood Posting Khan Academy videos to demolish a poaster should be more widespread. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26987080) |
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Date: October 14th, 2014 10:00 PM Author: Vigorous lime telephone (xo poa (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517709) |
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Date: October 14th, 2014 11:07 PM Author: sepia queen of the night (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26518122) |
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Date: October 14th, 2014 10:03 PM Author: razzle mood key word: HOLDING (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517727) |
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Date: October 14th, 2014 10:05 PM Author: Vigorous lime telephone also key: he's not even holding bonds, he's holding a bond fund (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517734) |
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Date: March 23rd, 2014 1:20 PM Author: multi-colored station corn cake are you a shitboomer retiring in 5 yrs? (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243767) |
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Date: March 23rd, 2014 1:24 PM Author: Self-centered Passionate Idiot no....decades from retirement. just fearful of where the market will go. most of the stock funds in the plan have expense ratios greater than 1%. have about $60k in the plan..what kind of fund would you keep it in right now>? (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243783) |
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Date: March 23rd, 2014 1:27 PM Author: multi-colored station corn cake the market will beat your shitty bond funds by the time you're old. do you have a cheap fund or any sort of index fund? (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243791) |
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Date: March 23rd, 2014 1:30 PM Author: Self-centered Passionate Idiot i agree, breh. i will move back into the 401k's stock funds whenever depending on what happens in the market in the short term (if it ever corrects, ect). the only cheap (expense ratio less than a half-percent) stock fund in the 401k plan is an sp500 index, which i dont think i want to be into right now. see above re my equity holdings outside the 401k (which include about 20k of vanguard international stock index fund). (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243802) |
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Date: March 23rd, 2014 1:34 PM Author: multi-colored station corn cake " i will move back into the 401k's stock funds whenever depending on what happens in the market in the short term (if it ever corrects, ect)."
dont play games like this. what if it keeps appreciating? you might lose 5-10% more gains. and then you're going to buy back at even higher? you're not going to time the market.
"the only cheap (expense ratio less than a half-percent) stock fund in the 401k plan is an sp500 index, which i dont think i want to be into right now. "
well, it's better than anything else in your 401k. get back in that and let it do what it do. |
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Date: March 23rd, 2014 1:41 PM Author: Mint disturbing legal warrant cr (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243860) |
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Date: March 23rd, 2014 1:41 PM Author: razzle mood Are you seriously 30 years from retirement and churning your portfolio 100 percent between bonds and equities? (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243855) |
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Date: March 23rd, 2014 1:45 PM Author: Self-centered Passionate Idiot just churnign the 401k breh...when i started it i did the target date fund and then started to think more expenses (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243878) |
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Date: March 23rd, 2014 1:49 PM Author: multi-colored station corn cake churn into the s&p (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243893) |
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Date: March 23rd, 2014 1:52 PM Author: razzle mood Well, the expenses are an important factor. What is the expense ratio in the target date funds?
But market timing is insane for a non-professional. You may be incurring fees too for moving around like that. You should set up automatic balancing and be in the S&P index fund at least 50 percent.
If you're worried about a market drop just accumulate cash. Churning like this is a bad idea. |
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Date: March 23rd, 2014 1:57 PM Author: Self-centered Passionate Idiot exp ratio for target date fund is almost three-quarters percent (3 times the bond fund)...that would be inaddition to the expenses of the underlying funds held in the target date fund, i would think. afaik there are no extra costs for getting into and out of these particular funds in the 401k...some of the actively managed funds do have transaction fees and lockout periods but those funds have 1%+ expense rations so i've never considered them seriously. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243933) |
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Date: March 23rd, 2014 1:24 PM Author: trip field hominid Well, maybe not the best move, but I can never complain too much about someone who sells high. The absolutely inexplicable morons are the people who sell low after the market has crashed. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243780) |
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Date: December 23rd, 2014 8:03 PM Author: Greedy Flushed Electric Furnace guy who thinks you can tell high and low at the time (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26988674) |
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Date: March 23rd, 2014 1:27 PM Author: Mint disturbing legal warrant If you think you can properly time a stock downturn and rising interest rates, go for it. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243792) |
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Date: March 23rd, 2014 1:32 PM Author: Self-centered Passionate Idiot well, not saying i can time shit, but keeping $ in the more expensive stock funds available under my 401k plan while the overall market stagnates is going to result in lower net returns by virtue of the significant spread in fund expenses (>1% for most of the stock funds vs. the bond fund) (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243811) |
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Date: March 23rd, 2014 1:30 PM Author: Cerise Reading Party CR if you are in your 50's (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243803) |
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Date: March 23rd, 2014 1:31 PM Author: Canary range see, this is where bond funds suck donkey ass.
You could put your money into a basket of short term bonds if you knew what you were doing (even though its a difficult task and is risky for unlearned investors)and gotten the principal back in one or two years after they mature and hopefully you would have been able to ride out a period of extreme volitility.
but with the bond funds its a little more risky. |
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Date: March 23rd, 2014 2:02 PM Author: Self-centered Passionate Idiot initially my idea was just to move most of the 401k into cash equivalent -- money market fund -- but i realized that the MM had the same damn expenses (with virtually no interest) as the bond fund. seems like the collective xo wisdom is just to get it back into the least expensive stock fund in the plan, which is an s&p index, and let it do what it do. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25243964) |
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Date: March 23rd, 2014 2:20 PM Author: fishy mad-dog skullcap weed whacker the stock market drop you expect would be because interest rates rise. so no. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#25244065) |
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Date: October 14th, 2014 9:25 PM Author: Self-centered Passionate Idiot with the recent dump in equities, i moved some money out of the bond fund into the S&P500 index fubnd. guess i'm where i would have been if i had put everything in the index fund in march (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517469) |
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Date: October 14th, 2014 9:55 PM Author: Walnut cerebral foreskin rehab Since 3/23/14:
BLV +8.58% VTI -1.37% |
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Date: October 14th, 2014 9:57 PM Author: Self-centered Passionate Idiot i'm not a bond master man, but aren't long term bonds the ones most likely to get fucked when rates go back up? (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517688) |
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Date: October 14th, 2014 10:19 PM Author: Walnut cerebral foreskin rehab Yes (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517787) |
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Date: October 14th, 2014 10:17 PM Author: judgmental garnet affirmative action filthpig You are literally doing everything wrong. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517779) |
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Date: October 14th, 2014 10:45 PM Author: Self-centered Passionate Idiot you mean, by trying to time the market? (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26517969) |
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Date: October 14th, 2014 11:09 PM Author: Anal Milk Resort Buy oil stocks. $85 oil wont last. This shit is bubble flame.
I especially love the idea that oil is off because of Libyan production. That country is imploding they will hit 300k barrels before they ever hit a million. |
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Date: December 23rd, 2014 2:26 PM Author: Supple dopamine Grow a beard (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26986933) |
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Date: December 23rd, 2014 4:22 PM Author: aggressive lavender windowlicker lol (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26987580) |
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Date: December 23rd, 2014 5:47 PM Author: razzle mood (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26987984) |
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Date: December 23rd, 2014 7:53 PM Author: deranged national exhibit 394b, you're honor. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26988612) |
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Date: December 29th, 2014 4:46 PM Author: provocative maniacal meetinghouse Just lol!!!!! (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27018520) |
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Date: December 23rd, 2014 2:18 PM Author: big brunch striped hyena ROFL (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26986915) |
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Date: December 23rd, 2014 2:25 PM Author: Claret school cafeteria Nice bump. Lots of stupidity ITT.
If you want low risk/moderate returns, buy high dividend ETFs. Going into bonds when prime is 0.XX% is suicide. |
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Date: December 23rd, 2014 2:52 PM Author: razzle mood 180. S&P tacked on another 12 percent since this post. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26987087) |
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Date: December 23rd, 2014 4:03 PM Author: big brunch striped hyena No problem, I'm sure his SHITBONDS did better. LOL (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26987471) |
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Date: December 23rd, 2014 6:13 PM Author: big brunch striped hyena (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#26988187) |
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Date: December 26th, 2014 2:16 PM Author: demanding state lol at this turkey. (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27000476) |
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Date: December 26th, 2014 2:48 PM Author: Rusted therapy jfc (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27000643) |
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Date: December 28th, 2014 5:48 PM Author: Self-centered Passionate Idiot OP here-- my 401k is now about 50k in a bond fund and 30k in the S&P500 index fund. i churned back into the S&P on dips. yes i would have been better off just putting it all in the S&P earlier this year. i still think there was some reasonable basis to treat the bond fund in the 401k as a place to store dry powder in the event of a major decline in the equities markets. i concede that if interest rates go up that may trigger declines in stocks and bonds, but there could be scenarios where equities decline and bonds are steady or increase in value, aren't there? |
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Date: December 28th, 2014 5:49 PM Author: big brunch striped hyena ROFL (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27012366) |
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Date: December 29th, 2014 4:51 PM Author: Greedy Flushed Electric Furnace dude, there are always reasons to choose bonds over stocks. the market is very efficient when it comes to valuations of these things, particularly in aggregate. had you been correct, you'd feel a lot smarter than you should (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27018534) |
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Date: February 5th, 2015 3:28 PM Author: big brunch striped hyena (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27255687) |
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Date: April 5th, 2015 8:58 PM Author: big brunch striped hyena (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27627261) |
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Date: April 7th, 2015 8:49 PM Author: Self-centered Passionate Idiot (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27643916) |
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Date: April 7th, 2015 8:59 PM Author: sepia queen of the night (http://www.autoadmit.com/thread.php?thread_id=2525167&forum_id=2#27643993) |