Also in this playlist...
This transcript is automatically generated
About what to do with your 41 K we've got you covered.
In our segment 401K Friday here to help answer your questions today from Boston if the endometrial he's mayflower advisors managing partner -- -- Hey Steve.
How are you well -- well -- and of course everybody is traumatized by what happened to their 401 k.s including a -- We have good ones there happens but right now but I'm right there with you I don't viewers are emailing us we want to give them some sense of what they should be thinking.
-- an outlook for here's a question.
Up from Brandon I am 55.
-- boy and was up part of but downsizing last may after thirty I'm in the company.
My 401K is now down to 500000.
Dollars after all the time the company what should I do with it.
If he's if he's now been downsized unfortunately now is definitely not the time to be taking any risk with.
With no income coming in.
The big thing is to make sure you have that principle there to get you through these tough times while he's.
While -- it's going to be out of work so I would tend to say that he should stay.
Invested don't try to make up background by getting into the market because is no guarantee that the markets the stock market's going to deliver -- over the short.
And 500000 is not -- Paul from Cary, North Carolina chimes and I'm 56.
And I want to retire when I'm sixty in four years my daughter starts college in the fall I have about 370000.
Dollars in my 41 Qaeda very stable fund.
Is it try to put some of this in mutual funds and what other kinds of investments should I look into what about the mutual funds.
Short while I think the key part of that question is is saying that he only has four years to -- And with only four years now's not the time to get too wild and crazy I think certainly if you're in a stable value fund.
The risk is that.
You know you do retiring for years and you live another twenty or thirty years you don't necessarily want to stay just and that's stable value.
I would definitely go to increase the exposure to bonds and in a variety of bonds to increase that income.
A bit and give a little bit of exposure to stocks but not too much maybe 30% tops and I would stay.
Focus more on the equity are on the dividend paying stocks equity income type funds.
That are going to give you a little bit more surety our consistency of returns and a little bit better surety of -- -- is not.
A lot of time let's go to -- in Houston Texas how safe.
Are our 401K and IRA money market funds -- that's the problem Steve you know somebody's money market funds absolutely broke the buck in September.
Meaning that they didn't have the assets that we people -- -- it's ridiculous some people are still yet it.
It's definitely scary and got the good news is that there -- the government renewed.
Some of the guarantees that they -- put on in -- in the last quarter of last year those are going -- last.
Through this year I do think that the ball go of things to worry about are really behind us in that market place.
Mutual fund companies have been and banks have been very aggressive in shoring up.
Those money markets.
They're definitely bigger things to worry about.
I I do think we're pretty much in the clear moving forward with the money market all right and Steve this is a more general question I've got about five years until retirement.
What can I rely on to propel my 41 KR any any sort of general ideas here.
Yeah absolutely I mean first again a similar to -- it's -- the other question five years is.
Not a lot of time to be relying on the stock market to propel your retirement.
I do think you want some exposure there again maybe 3035%.
But -- especially in today's environment.
Really putting -- nice array of bonds core corporate bonds high quality.
-- -- mixed with some high -- maybe even some form bonds to increase that yield but with only five years ago.
On the stock market.
Is probably not a safe bet the -- to -- trio of mayflower advisors thank you for revising our viewers we appreciate -- this is the very good weekend if it.
Take very well how low.
Filter by section