Changing investments now-- what should I do ??

[spunky]

I have a real crappy retirement plan through work. I have only 8 choices. 6 are blended stock/cash/bond funds , 1 bond only fund and , 1 foregin stock only fund ( I am in that one now) .

What do you think ??? Just go with the bond fund till we get some direction, or mabye the high grade US blue chip stocks ???

I am covered in bonars and PMs, allready


regards
:confused:

[Finster]

Re: Changing investments now-- what should I do ??

I have a real crappy retirement plan through work. I have only 8 choices. 6 are blended stock/cash/bond funds , 1 bond only fund and , 1 foregin stock only fund ( I am in that one now) .

What do you think ??? Just go with the bond fund till we get some direction, or mabye the high grade US blue chip stocks ???

I am covered in bonars and PMs, allready


regards
:confused:

Join the club, Spunky. Definitely hard to say what to do since we don't know what's going to happen next. My thoughts would be perhaps pare back on the stock funds in favor of bonds, but not to go 100%. This is what I've done, anyway. Good that you have some assets in an outside non-captive portfolio so you can get some exposure to something other than just stocks, bonds and cash. Investing is always a probablistic adventure, so I prefer to have at least some exposure in each of the major asset classes at all times. But my sense is that this week marked a shift in the liquidity cycle and it seems prudent to emphasize Treasuries and hard money at least somewhat more than usual. Bonds that involve credit risk (non-sovereign debt) would also be something I wouldn't want a lot of exposure to.

[jk]

Re: Changing investments now-- what should I do ??

one consideration is the duration of the bond fund, and whether there are limitations to how frequently you can change your fund choice. personally, i'd prefer a shorter duration fund. how about cash? do you have a money market option?

the other thought is that you need to step back and view all your investments as a whole. this account is only one piece of the puzzle, and you want your whole portfolio to be weighted in a probabilistic fashion.