401K question on the default

[underpants]

Should I move it to bonds or what?

[cantbeserious]

1. Good Question - I Wish I Could Advise

eom

[Paulie]

2. Moving to Bonds would be a worse thing to do.

Unless they are short duration like a year or less.

If you're time horizon is more than 10 years your best option is to don't do something just stand there.

[napi21]

3. I moved all of mine to cash (or money market), whatever your fund offers.

That way there is no charge for making the move, and when (or if) things settle down, you can move it back to a growth, growth & income, or whatever you choose. You won't make any money because interest rates are so low, but you won't lose any either.

[elleng]

4. Hold, imo.

Among other reasons, 401Ks are managed, aren't they?

Buy low, sell high, and bond market will be totally messed up, so hold what you have.
(I'm not a professional at this stuff, just a person.)

[underpants]

6. Thanks

I just hung up the phone with American Funds.

[elleng]

7. Good. We'll all hold our breaths together.

[NRaleighLiberal]

5. Hold if you are in it for the long run....it is folly to move and time the market - my take, anyway.

this too shall pass - prices may drop, but then come back - each of the funds should have decent money managers involved - they want to make money too....

The only people who should move to fixed return/cash are those who will be needing the money nearly immediately and can see values drop if things go south.

[tammywammy]

8. Hold.

If the market drops you're just buying cheap, and will have more shares when the market rebounds.

And don't check your balance every day, especially if the market starts to sputter in the next couple of days.

[PoliticAverse]

9. Do you have a spare mattress?

BTW if interest rates go up bonds go down.

[GOPGoindown]

10. Always

Hold

[jberryhill]

11. I put everything into dried food and ammunition

[roamer65]

12. Move it to a money market fund if you are worried.

The Federal Reserve acts very quickly to keep the money markets liquid. That was their first act in the 2008 panic.