OK. I didn’t go all cash, but I just made the biggest shift I’ve ever made in my 401K.
I went from 15% stable to 40% stable.
My reasoning is this:
– That is about where the Vanguard retirement planning mutual funds say I should be at my age
– I’m over 40% up from where I had projected I would be right now. I made those projections 3, 4 and 5 years ago.
– Most major market corrections happen in the July-October time frame
– I’ve always waited just a few weeks too long to move money out in the past and I don’t want to miss the boat again.
– I may miss out on some of the future up movements, but at least I’ve locked in the 40% upside I already have.
Those of you younger probably shouldn’t make such a drastic move yourself. But at my age, it is the right thing to do. Now maybe my 401K account will stop sending me nastygrams saying I’m investing too aggressive for my age!
