Ask Experts Questions for FREE Help !
    Unclefester57's Avatar
    Unclefester57 Posts: 1, Reputation: 1
    New Member

    Sep 21, 2014, 01:11 PM
    My 401k
    I'm 57 years old, I have a financial adviser that recommended I put 1/2 of my investments in Bonds, so I moved 40% to Vanguard Tax -Free Municipal bonds. After the beating I took in 2008 he said this would be a safer option for now.
    The other 60% is spread out in Large-cap and Small-cap mutual funds.

    My returns are much lower than when I had most of them in stocks. All of the funds have <1% expense ratio. Is this the price I have to pay for safety.

    Any second opinions?
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
    Uber Member

    Sep 21, 2014, 01:31 PM
    High returns come with a high risk, meaning high volatility. Being close to retirement you can't take a chance of a dive in the market not recovering to a point higher than before , when retirement age comes around...

    Historically in the long haul... its alwauys been on a upswing... however at 57, you aren't looking 10+ years out... you are looking at a much shorter time frame which HAS proven to be far more volitile.
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
    Uber Member

    Sep 21, 2014, 05:26 PM
    Yes, yield is opposite safety. I would only be in Muni's if I was in a very high tax bracket. GNMA would pay more. If you had have just left everything alone, you would be way ahead, Dow and S&P 500 just hit new highs. Why not a targeted fund, Vanguard 2020 retirement fund for example? Since 2006 it has averaged almost 7% return per year. That way you don't even have to manage anything.
    CalculatingReti's Avatar
    CalculatingReti Posts: 1, Reputation: 1
    New Member

    Sep 22, 2014, 05:19 PM
    Hi! My 1st post on this board. I'm 55 (right behind you), and I truly believe that we are headed for both a Stock and Bond market collapse - we are in bubble territory on both, and it is just a matter of time (I believe), before the roof caves in on both. That said, it is very rough sledding finding investments that garner yield, but mitigate risk at our age. What I've adopted is a modified 7Twelve portfolio (Google the book that describes this method; sold at Amazon), which allocates money equally into 12 different asset classes. Given my age, I have modified the core tenor of this book, to put more into Cash (even though it pays virtually Zero %). Forget these Financial Advisor types who just follow the herd; take more control of your own portfolio, and check out this method; best I've found. Good luck!

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

401k [ 2 Answers ]

I left a job on 07/27/2012 last Thursday. I am 100% vested in my 401k. The person that handles my 401k Stated that she was not going to give Mass Mutual my term date until the end of August, she stated that since my last paycheck went into August that I have to wait until the end of August for a...

I work tax exempt. 401k or roth 401k [ 4 Answers ]

I am a US citizen and work overseas. I have the tax exempt status up to $85,000. This being said, should I invest in a 401k(which is before taxes) or a Roth 401K since I really don't have to pay taxes on the income I have. Regards, Garf

Is there an example of a 401K waiver that is read to 401K plan participants [ 0 Answers ]

Is there an example of a 401K waiver that is read to 401k plan participants, when they are processing a distribution from their plan with the recordkeeper over the phone.

401k loan and pulling momey out of a 401k to pay the loan off [ 2 Answers ]

I have just turned 591/2 and have a 5,000 dollar loan from my 401k... can I withdraw monies to pay this loan off... and how much will I be taxed if I do? Mickey Huddleston

401K or Roth 401K [ 3 Answers ]

Hai, I am an Indian, presently working for a USA company. I will be in US for next 2-3 years and then I will return back to my country. My employer gave the option to enroll for 401K plan or Roth 401k or a combination of both. And the employer matches my contribution at the rate of 50cents on a...

View more questions Search