Shifting my 401K investments based on new administration?

[Duwop]

Am thinking markets may take a hit based on what we've read. What are you all thinking of doing?

 

[+ purplekow]

Yes.  Initial euphoria followed by buyer's remorse

[+ Vegas_Millennial]

5 hours ago, Duwop said:

Am thinking markets may take a hit based on what we've read. What are you all thinking of doing?

 

I'm maintaining my same financial plan that I've had in place for the past decade.  I check my portfolio once a month and transfer 10% from sectors that overperformed by 20%, moving half the profits into sectors that underperformed.  This strategy has allowed me to both routinely "buy low, sell high" as well as "ride the wave" of sectors that are outperforming until they are near the end of their wave of outperformance.

Nothing in the news affects my ability to buy groceries this week or pay my rent.  Stop worrying!  If someone is depending on certain stock performance to buy groceries or pay rent, then he shouldn't be invested in the stock market with that money, regardless how he feels about a politician's personality.

[Duwop]

1 hour ago, Vegas_Millennial said:

 regardless how he feels about a politician's personality.

Don't give a fig about personality, do care about policies, and what various bankers and economists have written about them.

Like your process, wish I'd been using that,

[moonlight]

Don't time the market.

"Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” - Peter Lynch

It's basically a cardinal rule for anyone who manages their own money, though most sabotage themselves by not following it and not understanding why it's important.

[Bokomaru]

I’d say a risk here is not rebalancing one’s portfolio. There’s a temptation to assume for instance that with current corporate tax policies likely to be extended, that the market might have a further run up, so riding the wave feels appealing. 
Maybe. 
Don’t trust feelings. 
Unpredictability unsettles markets.

Don’t get complacent nor greedy. Rather than shift strategy, re-balance if you haven’t done so already in recent times. And when doing so, consider whether your risk tolerance has gone up or down since the election results. Opinions will differ. 

[+ Vegas_Millennial]

On 11/9/2024 at 1:05 PM, Duwop said:

Am thinking markets may take a hit based on what we've read. What are you all thinking of doing?

 

Regardless of how you are invested for long term, think about your tax situation.  If you haven't already converted your 401K to a Roth 401K (if allowed by your company's plan), the next few years may be the time to do it, especially if the existing 2017 tax cuts are extended past 2025.

[BuffaloKyle]

If you're not close to retirement just leave it be. If you're closer to retirement most of your funds should be in low risk bonds anyway regardless of who's in charge.

[Thelatin]

My Vanguard advisor rebalances it once a year for me as I age.  I’m on track to die wealthy lol.  Don’t quite understand the point of it.

[TonyDown]

I recall coworkers exited stocks in the past, based on a new administration.  That strategy did not follow what my financial advisor taught me.  I stayed invested appropriately and benefited for it.

That said, rebalancing asset classes to fit with your risk tolerance, already mentioned above, is a recommended strategy.

[marylander1940]

18 hours ago, Thelatin said:

My Vanguard advisor rebalances it once a year for me as I age.  I’m on track to die wealthy lol.  Don’t quite understand the point of it.

Most Americans don't even have $400 in the bank for an emergency. Consider yourself lucky if you're on track to die rich, I guess you are already upper middle class.

 

[marylander1940]

It's time to buy gold? 

 

 

[Thelatin]

48 minutes ago, marylander1940 said:

I guess you are already upper middle class.

I would guess most people on this site do pretty well - this is not an inexpensive hobby.

[marylander1940]

1 hour ago, Thelatin said:

I would guess most people on this site do pretty well - this is not an inexpensive hobby.

To be honest with you it's hard to tell who hires and how often for real. 

Yes it's an expensive hobby but I wouldn't be surprised if some members have given up on hiring because of money, age, circumstances, etc.

There was an old thread about reverse mortgage for escorts. 

Hopefully we didn't drag this out of subject

[Thelatin]

I’m 13-15 years away from retiring, or at least partially retiring.  I do figure this hobby into my finances lol.  

[+ augustus]

The market does well over a long-time frame.  What I'm worried about is the out-of-control National Debt and the possible consequences for all manner of investments.  Both sides are profligate.

[Thelatin]

I’m not very educated on this, but have heard the national debt in comparison to gdp isn’t that bad, or unusual? 

[fancyboot]

I have a 403(b)presently through my job. Can that be converted to a Roth plan of some sort ? 

[+ FrankR]

4 minutes ago, fancyboot said:

I have a 403(b)presently through my job. Can that be converted to a Roth plan of some sort ? 

Most 403(b) plans offer a Roth option - you can start by channeling new contributions into a Roth part of the 403(b) that way.  Some 403(b) plans allow in service distributions/withdrawels before age 59 and a half - you can use that to shift funds into an IRA and then do a Roth conversion of those funds. Be prepared to pay taxes on any funds shifted out of your 403(b).  I highly recommend that you speak to a professional before making any of these moves - it can get complicates and messy if not done correctly and with appropriate planning.

[+ Pensant]

On 11/10/2024 at 5:09 PM, BuffaloKyle said:

If you're closer to retirement most of your funds should be in low risk bonds anyway regardless of who's in charge.

Although one would have lost a 30% increase in equities over that past year. I have a broadly diversified portfolio of real estate, bonds, equities and private equity which consistently returns great increases. I also love small regional banks and energy/royalty plays. Great dividends.

[+ Vegas_Millennial]

On 11/12/2024 at 8:34 PM, fancyboot said:

I have a 403(b)presently through my job. Can that be converted to a Roth plan of some sort ? 

In addition to asking your employer's plan manager if they offer a Roth 403(b), consider opening a Roth IRA outside of your workplace as well.