should I move my money fron stable to high risks
Should I move my money from my 457K from Stable to High risk?
Answers
3943 points
MNSL answered 5 months ago …
I think it is better if you focus on some sectors rather than high risk in all sectors.
I think policy makers; fund managers should introduce sector-based retirement’s funds now.
Accordingly, we can avoid sectors that going to underperform market in the future specially in the next 10 years. In addition, account holders can avoid unethical sectors and non-productive sectors. Instead, they can go for sustainable sectors.
This is time to introduce sector based retirement funds to investors. Failure to do so will make many account holders poor during next 10 years.
Can you believe annual return for some of growth retirement fund is less than 3%.
Many people with less knowledge are making retirement mistake now.
2082 points
alanj answered 5 months ago …
Stay away from high risk unless you are OK with possibly losing your entire investment in the high risk investment. Stay away from Pink Sheet stocks, companies in bankruptcy, low volume stocks. Avoid the Ultra series ETF's ( they are margined), unless you are an experienced trader and can time a trend change or you are a day trader or swing trader.
You should be OK by taking a small portion of your 457k and putting it in a medium-high risk fund. Such as a sector fund (Real estate or financial sector). When the market turns into a bull market these two sectors should do extremely well, because they have lost so much. Regular ETF's are OK.
If you want something low risk but more than stable consider an index fund such as SPY or QQQQ or a small caps fund.
However, leave your stable funds where they are for now. The markets are over bought. Wait until they are over sold again. Probably, in a couple of months would be a better time to buy. There's little reason why the markets should be in an up trend. Very little good economic news to support the current trend. This is simply a correction. Often called in the current bear market as a bear market rally. Long term we are still in a bear market. This market is going to turn south again. Possibly testing the low back in March.
Whatever you decide, (medium or low risk), being willing to wait and hold. Be patient. The market will eventually turn into a bull market again. Historically, pick any 20 year time frame, the last year of that time frame has always been higher than the 1st year of that time frame.
896 points
jillybeansisme answered 5 months ago …
My question to you is how long a time frame before you need the money? If it is within three years then absolutely do not go into high risk. Nobody should ever have 100% of their funds in high risk investments. If you feel we are at or near the end of a bear market, and you want to regain some of the losses most investors have experienced, then take a PORTION of your portfolio and put it into higher risk (not necessarily high risk, just a higher risk investment from what you currently hold).
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