Took my balance in my 401K program out of all stocks, bonds

Thread starter rhody
Start date Jul 21, 2011
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Balance Bonds Program Stocks

AI Thread Summary

Concerns about economic instability and potential government default have led several individuals to shift their 401(k) investments from stocks and bonds into fixed income funds. This decision is driven by fears of a significant market downturn, similar to past financial crises, and a belief that safety in fixed assets is preferable during uncertain times. Participants in the discussion express anxiety about the current political climate in Washington, fearing that entrenched positions may prevent effective solutions to the debt ceiling crisis. Some individuals report that colleagues at work are also making similar moves to protect their investments, indicating a broader trend of risk aversion among investors. The conversation touches on the implications of a potential default, including the impact on the U.S. bond rating and the broader economy, with many expressing skepticism about the government's ability to manage the situation effectively. Overall, the discussion reflects a collective apprehension about financial security in light of political dysfunction and economic volatility.

Jan 30, 2012

#101

turbo

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Saving for retirement can be "interesting". I have lots of pre-tax funds rolled over into an IRA, but I can't continue contributing to that IRA. I have to start another IRA with taxed money. Instead, I opted to build a substantial money-market account that the Fed has scuttled by shoveling free short-term money at Wall Street, so my interest rate is almost zero, and is far outpaced by inflation. Our government is bought and paid for, and they are driving wealth to the wealthy at a staggering rate.

My wife and I get weekly (at least) come-ons from big banks wanting us to take on credit-cards. The same banks pay less than 1/2% interest on your deposits, and will gladly dun you for 20-30% or more interest on CC balances.

"A man with a briefcase can steal more money than any man with a gun" - Don Henley