Should I get my money out of Stockmarket?

[Chasstev365]

I don't want to lose my nest egg and I got a bad feeling about the uncertainty of the world right now. Thoughts?

[Kirk Lover]

1. How old are you?

[Chasstev365]

2. Mid 50's

[Kirk Lover]

3. How many years from now will you retire?

[Chasstev365]

4. Approximately 6-7

[Kirk Lover]

8. How risk tolerant are you? You could invest in conservative funds if you are concerned.

There is also the target date funds that are supposed to be diversified and balanced and they get more conservative as you approach your desired retirement age. At 7 years out...I'd still keep it in the market...but that's me. I've asked a few preliminary questions to get the ball rolling with your inquiry and I hope someone with more investment knowledge will come on along.

[Best_man23]

19. Agree with assessing Risk tolerance

After November 8, 2016, my wife and I looked at our investments through our respective levels of risk tolerance. We mutually decided to reduce our exposure in the markets. Yes we did miss out on some potential gains, but we did not have the stomach (read Risk Tolerance) for what was the unknown at that time. We kept some holdings in no-load mutual funds that pay regular dividends, bond funds, stock funds with holdings outside the US, defensive stocks (consumer staple) like Kraft that pay strong dividends, and the Gold ETF (GLD).

I am nervous about what will happen to the markets if/when the tax cut fails to pass. I still think much of the run-up in the markets since last November is exuberance over a possible massive tax cut for corporations and the 1%. I'm not sure the Russpublicans have the votes in the Senate right now to pass either version, and if Doug Jones wins the AL Senate race, the margin gets even tighter.

[tazkcmo]

5. Not a stock market person

I did stay in a Holiday Inn Express last night and if you're looking for something with good long-term growth potential I would look into the possibility of solar Investments. I do know that even in downturns not everything goes down. Definitely talk to a professional you trust.

[unblock]

6. take online investment advice for what it's worth...

that said, personally, i'm starting to back off my normally very enthusiastic stock market exposure.

i think there could be a very big reaction to the tax bill, whether it passes or not.

[GP6971]

7. Thinking the same thing

I'm up 10% and weighing whether to cash out now or right after the 1st of the year. I think I'm going to gamble and cash out after the 1st.....tax implications for this year as I'm retiring next year.

[Kirk Lover]

9. Move the money to the interest account or general account. n/t

[Laura PourMeADrink]

29. I am gambling until Dec 1st. No one knows

When this will end. Could be next year could be tomorrow. My portfolio has grown 25 percent since Jan....want to convert to cash now ..at least the gain...then diversify with bonds. Lost so much in crash on 2002? Not gonna happen to me ever again

[panader0]

10. I'm no expert, and own no stock, but I can't believe this

market won't have a big "adjustment" soon. I can't really understand the
confidence in the future. I sense that many sharks are feeding right now,
and that the bubble will burst soon.

[Thor_MN]

11. I'm in the same boat with you and have no idea what to do...

I have two 401Ks with plans from former employers that are probably too stock heavy. I'm currently looking for my next job thanks to a new manager coming in and ditching me and others in the process of scape-goating management errors.

Fortunately, I got a decent separation amount (after having to fight for it) and I only owe $2000 on my house, so I'm in no immediate danger, but I don't trust Dolt45 not to crash the economy the way Bush did.

[roamer65]

12. Depends on if its an after tax account or a 401k.

Each one is very different.

[PoindexterOglethorpe]

13. The most important thing

is to have a very diversified portfolio.

Trying to time the market never works. At least some people here said they were getting completely out of the market as soon as Trump was elected. Since then the Dow gone up over 5,000 points.

You do have a long enough timeline to hang in there, but if it will make you better able to sleep at night, do some selling. Have somewhat more cash than your normally would.

Perhaps shift your investments into ones that pay good dividends.

[Hoyt]

14. Who knows. Many pundits predicted the stock market would decline, perhaps crash, if Trump was

elected. Our society may have declined, but the market didn't crash (probably because Obama's Admin set a good foundation for the economy coming out of a deep recession).

If the tax plan fails, or something else happens, the market might go down. Then again, that might already be factored in. I cannot believe smart investors aren't concerned Trump will set off a world trade war at best.

Might be a good time to lighten up on stocks, particularly risky ones, if you are concerned.

[pansypoo53219]

15. i would. can you say 1929?

or move to bonds. ultra safe.

[onecaliberal]

16. Last time we were in this predicament we lost nearly 30% in two days.

We’re out.

[dembotoz]

17. As much. As I admire the brilliance of folks here...

Please do not use du as the final word on ur financial decisions...

[Chasstev365]

18. No, I know. I'm just trying to get a gauge.

[cbdo2007]

20. Definitely!!!

Or maybe not.

[Chasstev365]

21. Gee: Thanks!

[cbdo2007]

24. Honestly though you should always keep your money in the stock market...

it will always come back. Make sure you are in an index fund or something with lots of different companies.

The only people who lost money in 2008 were those who took their money out. Even if you are planning on retiring in 5-7 years, you should only be taking out a small amount each year so it will have much longer to recover.

[Yonnie3]

22. I have an allocation between bonds and stocks and will continue to do so.

Long term investing is not an all or nothing thing. It should be a blend of diversified investments which you are comfortable with. I like index funds because they are diversified and can have very have low fees.

As the stock market went up, I exchanged enough stock mutual funds to bond mutual funds to maintain that allocation. As I get older, my allocation has been moving towards a higher percentage of bonds for less risk.

When the market went down significantly (2008), I gritted my teeth and moved bond funds to stock funds to get my allocation back on track. This meant I bought low and now I'm selling high.

I make these adjustments about twice a year and also by withdrawing selectively now that I'm dipping into the IRA.

The only thing we know with certainty about the markets is that they will fluctuate. After 45 "won" the presidency, there were DUers who said they were going to pull everything out because there would be a crash or a war or whatever. Those who did missed a nice run up. It is impossible to guess what is going to happen and time the market so as to make the maximum and also never loose.

[mopinko]

23. i got a good chunk of change in my divorce.

in a 401k, but boy do i hate wall street. paid a big hit to the tax man, but took it out and put it into real estate.
other reasons to want the property, and have resources to actively manage that property.
but yeah, i will get a monthly check, and when i get sick of dealing w it, i can sell, get my whole investment plus back.

[Calculating]

25. Honestly nobody knows at this point

I'd expect a moderate correction if the tax plan fails, but nothing totally crazy. Short of a world war or something ridiculous I think you should be fine. Overall it's almost always better to just keep your money in the market assuming you're well diversified and not holding super risky stuff. In the long run you always gain. The key is to DIVERSIFY, and not have more than 5% of your money in any particular holding.

[GulfCoast66]

26. 401k has been very good to the wife and I

I got out of stocks and into bonds and cash in late 07. No genius but common sense told me that when mid level managers can’t afford a house things are out of whack. Missed most of the last crash. Got back in with a vengeance when President Obama was elected and have done well.

Moving back to bonds and cash later this week.

[TlalocW]

27. I've had several advisors tell me

That there is no 12 year period in the stock market where it didn't finish higher than when it started. So if you stayed in it, and tomorrow it plunged and then went up and down in a crazy pattern befitting Trump's thinking process, in twelve years you would finish higher. So if you can hold on that long, history would seem to say stay in. However, if you're going to need the money before then, you might want to get out. I'll probably be in for a few more decades where I won't touch anything, and if things do go to shit, then hopefully precious metals will go up. Mom and dad owned a grocery store back in the 50s and 60s, and mom would save all the silver coins that came through to divide them up amongst the kids. Silver's been lagging around $17 a gram, but just a few years ago, it was up around $45.

But what the hell do I know?

TlalocW

[Laura PourMeADrink]

30. Hmm...I lost 50 percent in 2002 and still havent

Gained it all back...so not sure I believe your advisors

[secondwind]

38. The market is up 117% since 2008

[Laura PourMeADrink]

42. Doesn't matter if you are starting from behind..my loss

Was between 2002 crash and 2008

[spooky3]

28. Be sure to consider tax consequences if they are not in retirement

accounts such as 401ks. If you have gains and move funds to different investments, you’ll have to pay income tax on the previously unrealized gains.

I have several friends who are finance professors and say that research shows that most of us should not try to time the market.

Maybe you could consider putting all of your planned savings for the next x months into very safe investments, and move some of your riskier investments to safe ones slowly, rather than all at once.

[doc03]

31. I think the only reason it is so high now is there is nowhere else

to put money, bonds are in the tank, money markets pay nothing and banks pay nothing. I don't get how
credit card interest can be 20% or more and my bank pays .51% on a 5 year CD. Many said to get out of
the market back when I retired in 2009 at the bottom of the recession. I am sure glad I didn't, my IRA account
balance has more than doubled even after I have been making $12000 withdrawals yearly the last 5 years.

[Yavin4]

33. "I don't get how credit card interest can be 20% or more and my bank pays .51% on a 5 year CD."

That difference (20% on credit cards and .51% on CDs) is the real bail out from the financial crisis.

[doc03]

34. I think you are right, interest rates have been in the tank ever since the recession.

Since the treasury has been inching up the prime rate the last few months the bank CD rates actually have gone down.

[Yavin4]

32. Basically, it comes down to this.

1. What is your timetable to retirement?
2. When will you need the money to live on?
3. If the market were to plunge by 25% or more, how long could you survive on your other assets/income?
4. What are your other financial risks? e.g. healthcare due to a chronic illness? possible job loss?
5. What are your liabilities? Mortgage? car payments? student loans?
6. Do you have dependents?

IOW, your investment decisions depend on answers to these questions and more. My advice is to do your due diligence and talk to a real financial adviser, someone who has no stake in trying to steer you towards any financial decisions. Do your homework and look for a good adviser.

Best of luck.

[alittlelark]

35. Contemplate foreign currency, Everbank is a good choice.

Many options and an FDIC insured bank.

[L. Coyote]

36. Consider instead where the stock you own is located.

If the value of the dollar collapses, you don't want shares in companies that are entirely in the USA. When the stock market numbers are going up, it can be because it takes more dollars to buy the same thing because the dollar is worth less. Pay attention to values of currencies in relation to real things, like commodities, oil, gas, land, and real estate, as well as stocks. Real estate can produce income, land can produce trees and crops. What do your stocks produce? Computers, cars, insurance?

Oh, and don't pay attention to advise from places like this. Talk to an expert.

[Cicada]

37. Fabulous technologies will improve profits

World wide, wealth is rising rapidly. AI, blockchain, others will improve profits. Stocks have risen in the past. So it seems to me profits will keep going up, overall.

But I could be wrong. This smart guy in Greece, Socrates, said that he was the wisest man in Greece because he knew that he knew nothing.

[lastlib]

39. "Buy low, sell high"

Right now, it's high. Might be a good time to take some profits and maybe keep the principal invested until there's a clearer picture of what's coming. Major highs are often followed by major corrections, and if the tax plan fails, I personally expect a sizable correction. But a lot depends on your specific portfolio. I'm personally bearish these days, but haven't taken any $$ out yet.

[DrDan]

40. diversify . . . based on your age

[ProfessorGAC]

41. Unless Your Money Is Packed In One or Two Big Baskets. . .

. . .and one of those baskets are considered growth funds, which generally means more volatility and more risk, long haul wisdom is to leave it alone.

You say you're talking 6 or 7 years to retirement. Still better to leave it there then to cash out and make essentially zero return for 6 or 7 years.

I'm retiring in 398 days (yeah, i've got a day by day count going). My contacts at the investment place that manages 401k and 401a have me in 4 funds that are all fairly steady. Not making 8% a year, but risk is pretty low too.

Besides, since overall productivity in the macroeconomy is pretty strong, this is not a "bubble" like what we saw in real estate 15 years ago, or tech stocks 20 to 25 years ago. The valuation of most of the market is at least rooted in real production and some reasonable return on operating assets. It's not the illusion that the above examples were.

I've got a meeting 1Q18 with my retirement guy and we'll see what happens then, but i'm not moving anything out of very large funds with limited volatility.