[Nichole]

Looking for some advice. I moved all of my retirement savings into cash last week before the market started going down (I did not pull it out of the IRA, just pulled it out of the fund it was in).

I don’t want to keep it in cash, but while I suspect that the market is going to continue to go down due to the economic strategy of this administration, I want to put it somewhere that is more stable for the next few months, until the market swings upward.

I’m not a day trader, so I’m not interested in moving money in and out, I just am worried about this particular period of volatility, since it is such a vastly different approach to the economy than before.

Please do not comment with political opinions, that is not what my question is about.

I am interested to learn what options I have to put my retirement savings somewhere it can earn modest, nonvolatile interest for the next few months.

I have my retirement with Fidelity if that makes a difference in your suggestions. I would also like the flexibility to move it out quickly to catch the next upswing.

Thanks!

[David]

TLT is where I’m mostly at right now. It should run up soon.
And metals

[Daniel]

“Not interested in moving money in and out”
says the person moving money in and out

[Christi]

We did the same thing.
My husband‘s choices are limited in his 401(k), so we just went to the most stable options available and in mine in Fidelity I just sold and let it sit for now in the account.

I believe that’s like a money market usually is earning about 4%.

I’m guessing that that’s where you have yours at right now. To me in this market, I’m happy to sit and make 4% for a while.

I’m not sure there is any better option. That’s not gonna have more risk.

We left some in the market, but we are happy to miss out on possible gains for a little while if it means avoiding the large drop we expect to see.

I understand all the people saying you can’t time the market, but that means they are looking at the current scenario as being something we have precedent for, and I don’t believe that to be so.

And for what it’s worth, I will be thrilled, utterly thrilled, if I’m wrong.

[Ryan]

You believe the economic strategy of this administration is to tank the market?

Does Fidelity have people to speak to so you can understand their product offerings?

[Allison]

Wait. Last week was “bad”? How long have you been watching the market? There have been worse weeks and months in the previous 4 years than just last week.

Blaming administration for a down week is … an interesting theory

[Ralph]

Schwab or Fidelity in their cash funds are paying the same or better than a lot oh HYSA accounts.

If they are your brokerage account just leave it there and then it is ready to get back in the game when you want to.

[Lynet]

My only comment.
Time in the market” refers to the strategy of staying invested in the market for a long period of time, rather than trying to actively buy and sell at the perfect moment (“market timing”), allowing your investments to benefit from compounding returns over the long term, even through market fluctuations; essentially, the longer you stay invested, the more potential for your money to grow through market upswings.

[Corey]

Wow, I don’t like your strategy to be honest. Hopefully, you bought back in early this morning, it was a great time to buy.

Timing the market is a fool’s errand to a large degree. Here’s what I do.

When I have positions approach all-time high’s I trim them. I also keep a good chunk in income-producing ETF’s.

This allows me to keep a small portion in cash in my Fidelity money market for dips in the market. So far I’ve outperformed the S&P in my Roth and matched it in my IRA.

The politics are largely irrelevant.

I can tell you this though, we’re definitely looking at a stronger dollar under this admin.

[Aaron]

It’s behavior like this that makes retail investors so drastically underperform the benchmarks that they’re invested in.

[Marco]

Not even warren buffet can time the market, to answer your question you could buy bonds, gold or fix deposits but just to be clear: what you are doing is the typical way non sophisticated investors sabotage themself..

if u aren’t comfortable staying invested with the previous portfolio is understandable but don’t re invest in it few months down the line (and possibly panic again) may be find a different portfolio, something u can stick with it, something perceived safer

[Allen]

Did you pay taxes on your gains?
Timing the market is a losers game. You have to be right twice, entrance and exit.

Easier said than done, otherwise everyone would be rich.

No offense, but if you are asking for advice online from strangers, not a game you have the skill to play

[Kostya]

Pulling money out due to economic policies of administration lol. I suggest you invest in China.

[Mark]

Great time to do ROTH Conversion if the market goes down!!!
Market timers ….

[Herbert]

Why would you take financial advice from strangers. Learn financial literacy. No one cares about your money more than you.

FIRE class of 2019.

[Franc]

Look into VIRT. They are a market maker. Days like today are good for their bottom line. They dream of volatility.

I have about a 72% unrealized gain in their shares. Pays me a huge dividend also.

[Franc]

You can’t really predict a bottom, black swan or a false alarm so if you see a good deal, keep buying a little of what you’re confident about long term.

[Steve]

Don’t try to time the market. Studies have shown that doing it successfully and consistently is impossible.

What signal would you look for to decide when to move all $$$ back into the market?

[Tonya]

Invest appropriately for your age and leave it alone. Timing the market is not a good strategy.

[Anthony]

Stash it in us treasury bonds yielding 4.25~
It’s going to be hard to time the market.

But for a few months this is were the scared or possibly smart money is flowing.

[David]

IMO, you’re playing a dangerous game. I put 20% of my 401k into cash years ago because of what I thought the market was going to do.

I missed out on a lot of gains. I’m just glad I didn’t do that with the entire portfolio.

Again, I say this a lot, dollar cost average (contribute every payday) into low cost index funds and don’t look back.

[Dan]

Find an asset allocation you can live with and just live with it. How do you know when to get back in?

You need exposure to stocks to keep up with inflation over the long term.

[Michael]

This is genuinely insane. Hopefully retirement is in just a couple of years for you. Stop watching the market altogether if you think it’s bad now.

Go back and look over the ups and downs the past 5 years. This is nothing. A blip on the map.

Usually if you meet with a financial planner from fidelity they can advise you on how to best reallocate your investments to focus on a safer asset distribution like bonds.

But honestly, I don’t know what news you’re watching, but I think it’s scaring you a bit too much.

This is a forum for how to retire wealthy, and what you’re doing, making these decisions with your emotion, will not get you there.

[Thai]

I don’t suggest you do any of this, ignore the mass hysteria, and be more forward looking.

Don’t look into the next few months, but the next 5 decades, and have the humility to understand you cannot predict the future.

There can be any number of geopolitical events aside from the election of a US president that’ll affect your investments, imho don’t let it scare you away from investing.

[Raffaele]

Not political, just numbers since you mentioned this administration, which is the same as before Biden and did pretty well for the markets.

During Trump’s first term: SPY +70%, QQQ +161%, NDAQ (I think) +90%, VFIAX +74%

Biden’s: SPY +56%, QQQ I think 66%, VFIAX 55%
2nd Trump admin: SPY -0.82% , QQQ -1.4% (it’s too early so they don’t even count)

All this in spite of COVID.
The numbers should tell you that the administration doesn’t really make the market to go down as bad as you think

[Author]

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