[USER]

My asset allocation on my 401K is aggressive and 90% in domestic stock.

With all the stocks at all time high and AI there are a lot of rumors of significant market downside in coming months, Is it a good idea to remove the fund allocation and leave it as a Cash only 401K account?

Looking for good vs bad, suggestions, downsides, fee involved and thoughts as well.

[Jared]

The market hits all time high after all time high so how do you know what all time high you should sell? The answer is you don’t.

If you’re close to retirement carve out 20% that’s safer.

If not, then just keep going.

[Rebecca]

I never try to compete with the market because it’s against people that all know a lot more than me. I always go by time in market over timing the market.

It takes less energy and I do better. (Unrelated — I also think the only number Donald Trump knows or cares about is how the stock market is doing and if it starts tanking he’s going to try to take whatever steps he needs to to bring it back.)

[Jonathan]

Nothing wrong with 60% positions and 40% cash. Markets are very toppy IMO.

[Rhodell]

it depends on your time horizon. if you’re 5 yrs to retirement you might consider re allocating to more conservative portfolio but if your are 15yrs or more to retirement it’s better to stay on your current asset allocation.

Attempting to predict market movements often leads to missed opportunities.

consistent investing is typically produced more returns than jumping in n’ out the market.

[Scott]

The nice thing about predicting a down turn is that eventually you’ll be right. Historically, we are overdue for a correction, but who’s to say when, and how much gains will you miss out on if you pull early or stay on the sidelines too long?

No one can consistently call the market.

That said, if you are within 5 yrs of needing the money, you may want to reposition to more conservative assets.

But do it for that reason, not because what people are saying.

The market always reaches all time highs. That’s why it’s so great over the long term.

[Mark]

The hardest thing to do is to do nothing different when u “think” u need too. Why make changes based on “rumors’.

If u have a 10 to 15 yr outlook u should do nothing different.

Re visit ur investment plan. U hope there is a “downside”. U get stocks on sale and u make more money

[Brian]

Your current age and time until you need those funds is a critical component. On top of that, I would suggest a reallocation rather than sweeping everything to cash.

In general, you should stay invested and just keep contributing

[Matt]

Sounds like you need a comprehensive financial plan if asking this question. I suggest a professional not Crapbook even though lots of smart people here in this group.

One of the first lessons in investing is time in the market, not timing the market.

That is made clear here daily.

[Laura]

If you are a long way off from retirement then don’t touch it. You can’t predict the market.

It may go down but will go back up.

[Zach]

Depending how close to retirement you are sometimes you gotta talk yourself off the ledge and let it ride.

[George]

Your asset allocation strategy should have nothing to do with the current market condition.

I aligned mine in IRA accounts with 75% domestic & 25% international

[Sid]

As others have said, it is difficult to time the market. I am not an investment professional, but I would suggest, perhaps getting into stuff. That is a little less aggressive.

A number of years ago when the market tanked, I was very aggressive, and those seem to fall the furthest very quickly.

Some of this depends on your age and how long you have for it to bounce back.

Usually the market does come back.

[John]

The biggest downside is that you have to be right twice with timing.

[Jonathan]

Other than my emergency fund I’m 100% in stocks across all my investing retirement/brokerage/etc.

[Riotto]

Time in the market outperforms trying to time the market. No one has a crystal ball to predict whether it will rise or fall.

[David]

AI is poised to help all markets. You are placing a large bet in what historically has been an excellent return but there are no guarantees that will continue and now looks pricey compared to alot of international.

Do what you’re comfortable with and live with it.

I like to ask…how can I most screw this up.

[Author]

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