401k and mutual funds, during these times should I move my money to safer funds?

Question

I am 47 years old, and I have inest in equal portions to these 3 funds:

Templeton, Fedility Contra, and Vanguard life Strategies.

Answer 1

If you an inexperienced investor, the best thing to do is to do nothing.  The stock market is volatile but it always goes up overall in the long run.  Think big picture and you will do fine in the end.

Answer 2

I would not suggest investing more conservatively because you are nervous right now.  The stock market will always have up and down periods.  If you move your money into safer investments you risk missing the upswing.  Nobody can time the market.  

You should focus are being diversified and having the right mix of assets.  Please keep in mind that the day you retire you will not spend every dollar that day, you need this money to last as long as you do (which could be another 30 years if you're 65).  With inflation at 4.1% in 2007 you need your money to grow just to keep up.

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Answer 3

If you mean these economic times, it doesnt matter what the economy is doing now.  What matters is your personal situation.  Your risk profile, how long you have until retirement, your other assets and income   If you're close to retirement you should be in safer investments.  If you're young you can take more risk and handle the ups and downs of the market.  Retirement is a long term investment.  Dont invest for the longterm with a short term view.

Answer 4

Now is a good time top assess your risk tolerance and make sure your asset allocation matches your risk tolerance.

Do you have bond funds? International funds? Do you even know your current asset allocation and why you chose it?

If not, go here:

http://www.saveyournestegg.com/diy.html

When you have a well thought out investment plan you never have to worry about what the market is doing.

Answer 5

What funds are you invested in now?

Answer 6

Scary times, but if you've held these funds for awhile , I'm sure you've seen this before... you still have plenty of time to recover from any " dips".

Contrafund is nice base for you....hold that for sure...

" Templeton" is a company that has hundreds of funds...so I don't know what to say about that..

The " life-cycle" fund is probably very conservative, so you should be fine there, also...

13 years to go...it's a long time... you could still put a tiny percentage of your holdings ( 5% or so ) into something " international" for a few years ... they are the kinds of things that double in 4 years or so...just a nice " kick" for the run to the finish line... and then get cautious at 55 or so...

... but you do it any way you want...it'll still work out... just remember : you are doing a better job looking out for your future than years and years of different politicians who came up with the very faulty Social Security plan.( ...but I bet THEY all retired with great plans !! )

Good luck.