When your 401k Fund Manager says it's best to do nothing, it's time to do something. ( conspiracy )

submitted by dontwatchtv

--The rule of thumb for 401(k) plans during market volatility is to, in fact, do nothing. As this best practices guide from T. Rowe Price explains.

Many of us have just seen our 401k claw back to what they were pre-2008 crash. The crash that is unfolding will be deeper and longer than our previous recession.

It's time to cash out.

401k Funds have been a dumping ground of bad stocks for their respective institutions. There is a reason why 401k funds seem to crash harder and take longer to recover. They know that 90% will do nothing as the market declines.

Drenki

I cashed out back in Aug.

Sciency

Good timing.

forgetmyname

The bubble was at its peak late 2014, you should have cashed out then. Now you might as well keep it there, unless you think the economy could get worse.

Sciency

Personally, I expect things will get worse. Not trying to be a downer, I'm just not a believer in the stock market.

arrggg

That is exactly what they said to me in 2007... I transferred it to a self managed fund right after that grand advice.

tragicwhale

I have an old 401k with not too much in it. How do I transfer it to a self managed fund (what is a self managed fund?)

dontwatchtv

Maybe you can roll it into your own IRA.

tragicwhale

I had thought of that too just didn't know if that also meant self managed.

arrggg

First you have to find a brokerage account that will take it, like ETrade\Scottrade and setup an account so you have the # to transfer it to. If its an old one not managed by your employer then it should be easy, just tell them to roll it over to the new account. If it is managed by your employer, then you have to read the fine print in your plan, and take that to your HR or 401k people at work and tell them you want to roll it over. I had to argue with them for weeks about it, finally showing them the fine print that says it is allowable worked.

Once you have it in your own self managed account, you can buy and sell the market bounces. (or just sell and hold it in cash if everything is crashing)

tragicwhale

Sweet, thanks for the advice aarrgg!

arrggg

You're welcome, good luck trading.