mutual funds going down, should I move the riskier funds to stable value funds? (invested, stock market)

[hueimo]

I'm not contributing anymore money to my previous employer's mutual fund plan, but the riskier funds are going down big time, should I move these funds to stable value funds or leave it as is, since I don't need to use this money right now anyways? just wait it out till I retire which will be 30 something years..? I heard that when the funds go down, there's no need to change the contribution in fact, it's good to buy the funds at a low price, but in my situation, these are existing money in there, should I move them to the stable value when the stock market isn't doing too well? thanks for your input.

[HappyTexan]

That's a hard call. On one hand you have time on your side to recover. On the other hand if you don't have the stomach for a bear market then a stable fund will give you some peace of mind.

If you do decide to get out..then do it on a day the market has a rally, towards the end of the day but before the cutoff time for your fund to take the order.

At least that way you can recoup some of your loses.

But, it's really your call to get out or not. Sometimes you just have to bit the bullet and take a loss.

[davidt1]

Originally Posted by hueimo

I'm not contributing anymore money to my previous employer's mutual fund plan, but the riskier funds are going down big time, should I move these funds to stable value funds or leave it as is, since I don't need to use this money right now anyways? just wait it out till I retire which will be 30 something years..? I heard that when the funds go down, there's no need to change the contribution in fact, it's good to buy the funds at a low price, but in my situation, these are existing money in there, should I move them to the stable value when the stock market isn't doing too well? thanks for your input.

What are the funds you invested in?

[adshook]

You're in the same boat we are. You need to look at what funds your invested in and consider your losses if you pull out. It usually pays to ride out the bear especially if your looking at 30yrs.

[skytrekker]

If under 40 years od age- I would not unduly worry- but would still shift some money into some more prudent less risky funds- its always best to have a diverse portfolio. I do not see returns in the future matching those of the 1980s or 1990's. There is going to be more regulation going forward- the demographics in the next 20 years are against another stock market boom, plus taxes are going up- and the country is politically turning from A right wing mindset to a more leftist political & economic idealogy; These cycles last 30-35 years on average. That said once this crises is over returns should match easily those of the post WW II period ;1950s to early 60s- around 5-7% a year tops. Picking the right funds or stocks may yield more.