Safest 401k investment options
Is anyone planning to change or have changed their 401k investments options to play safe in case of slow down? Currently all of my 401k is in fidelity large cap index fund. Has worked out for me till now. Any suggestions on that too?
What is Fideliy large cap index fund? S&P 500 or something else? I'm all in on S&P 500 index. I don't try to predict the market because in 40 years of trying to, I've been wrong.
It's FID 500 INDEX. It's mostly large cap as mentioned in category. Predicting market is not the best way to make money from stocks. I recommend reading a book. I didn't lose much but realized pretty early this isn't for me. Reading didn't made me any better but I understood why most people lose when trading.
Cash
401k investments should be long term. I wouldn’t change it up to time the market. Since its tax free growth I tend to try to allocate a bunch of it to tax inefficient investments like REITS and high dividend yield index funds. And mix in some large cap and emerging market funds too.
If all your investments are in large cap stock then you should be investing with the understanding that you have enough time to ride the waves of the market. Otherwise your investment strategy is too risky for your situation.
What do you recommend?