Nervous about market. Want to liquidate 25%
Most of the index funds and my 401k is very heavily skewed towards a few big players like aaple, Microsoft and nvidia and one or two names. Is it a bad idea to change 25% of my 401k to cash for a while? I don’t want to liquidate the whole thing obviously. I am looking for risk free 3-5% growth names where I can park 25% of my 401k money.
Passive investing outperforms active investing in the long run. Just set it and forget.
Don't liquidate. Your time horizon is very long for a 401k, so don't think in short terms. Index funds like VOO or VTI are sufficiently diversified.
I’ve been thinking about this a lot as well
If the tech stocks go down a lot then the bonds, including treasuries, are gonna tank too. CDs, HYSAs and to some extent the money market funds are better protectors. The better way for one to think is this way. What are the possible scenarios that my portfolio can go down? If you think high reliance of the sp500 on few tech companies are a problem then why not buy equal weighted sp500 ETF or even sectoral ETFs? If you can't properly answer these questions then you are better safe with 60:40 investing.
Your portfolio needs proper diversification. It seems to be highly cincentrated and is at risk. You need a fee only financial advisor.
Don’t try to time things. I’ve tried to do this so many tomes in the last 15yrs and it has done nothing but burn me leaving more cash. Just DCA in more slowly moving forward. Alternatively you could look at real estate options
Go ahead and liquidate a portion and put in SGOV. You may sleep better at night.
You’re being an emotional idiot and need to stop opening your app and looking at your account. A dead person would make more money than you at this point.
Just time the market perfectly. Sell at its highest point and then wait until it drops to its lowest point and rebuy. Easy peasy and live on your own Caribbean island. Buy good insurance though for the hurricanes.
Not investment advice. Any money market funds available in 401k where you can have your cash at least get 4-6%?
Is money market the best option? I suppose alternatives are CDs, bonds, bond funds.
Yes, but 401ks often don’t have CDs (at least from my experience). That is more of a banking product. If bonds or money markets start to “fail” then we are all in trouble. Any of those are fine for safer investments