as many americans forced to run with a 401k because we dont know any better and its the ‘path of least resistance’ to a retirement account… what do we do in the face of a dying democracy and economy?

id love to move it to some ‘foreign’ investments, but is that even a possible option? do i just hope and wait for stability to return at some point in the future or is it hookers and blow time?

  • Nougat@fedia.io
    18·
    9 days ago

    The whole point of having a 401k is to keep plugging away at it, slowly but surely. That way, the ups and downs affect you less, because of dollar cost averaging. If you’re a ways off from retirement, your dollars now buy more shares than they did last year this time.

    The expectation is that the market will rebound, and then you will gain quite a bit on what you have invested today.

    On the other hand, if shit hits the fan, that money wasn’t going to do anything for you anyway.

      • flatbield@beehaw.orgEnglish
        6·
        9 days ago

        Well you have a choice. Either diversified portfolio and that includes international. Or some tilt to it that reflects your values.

        Keep in mind if you had a pension or an annuity they would be doing the same thing so both have portfolios. Just one is more direct and you have more control.

      • Opinionhaver@feddit.ukEnglish
        3·
        8 days ago

        It’s too late to sell now. If you want to move your investments elsewhere, you’ll need to wait until they climb back to all-time highs - which could take at least a year or so. That said, not investing in the U.S. at all would be considered a poor financial decision by most informed investors. You’d be leaving a lot of money on the table, and honestly, kidding yourself too if you think non-U.S. mega corporations are somehow more virtuous.

  • oceanAEnglish
    7·
    9 days ago

    It seems you’re asking a few questions.

    One, a 401k is not your only route for investment. Depending on your income you can also differ to a ROTH 401k with tax benefits.

    You should start your IRA/ROTH IRA if you can invest more than what’s in your 401k which is limited to work.

    I would say if you have cash now is a good time to invest with recent discounts but following Jack Bogle’s ideology, time in the market beats trying to time the market every time. Vanguard has two index funds that are commonly recommended for this strategy, VT and VTI. I forget but I think the latter former is the international fund which allows you to have a balance between American investments and world wide investments.

    The economy will come back in country and out. If it doesn’t I think we will have bigger problems than money.

    Bogleheads site where you can easily find the forum and wiki.

    Here’s a link which has a lot of helpful topics one including preparing for retirement.

    Edit info:

    I was wrong, VT is total world https://finance.yahoo.com/quote/VT?p=VT

    VTI is US https://finance.yahoo.com/quote/VTI?p=VTI

  • flatbield@beehaw.orgEnglish
    6·
    9 days ago

    All about diversification. If your in one of the target date funds, you should already have 30 or 40% foreign stock and maybe 60/40 stock to bond ratio depending on your age. Look at your asset allocation.

      • flatbield@beehaw.orgEnglish
        5·
        9 days ago

        You could go to Vanguards website and look at their funds just as an example. They have funds that are totally international for example. If you look at target date funds theirs are maybe 40% international. Me personally I prefer the 30 to 35% range simply because international has not had the returns of US though hey maybe finally international will out perform US. Who knows.

  • bluGill@fedia.io
    6·
    9 days ago

    When the stock market is having fire sale is not the time to ask questions, it is time to buy. Trump is near 80 - he won’t be alive in a few years. He stastically has a 25% chance of not even finishing his term. Power will shift and shift again ever few years. those who stick to a good plan do fine.

    Even in the worst case you are unlikely to find the better answer ahead of time. Just enjoy the sale and forget about daily movement.

  • GregorGizeh@lemmy.zip
    5·
    9 days ago

    The first rule about asking for financial advice on the internet is: dont follow financial advice on the internet.

  • Rhaedas@fedia.io
    4·
    9 days ago

    It depends on things like how flexible your investment options are with your 401k program, if yours is through work and your employer also contributes a percentage, and the big one, how long have you been investing and how long before you need the money.

    The two best ways to protect yourself from unstable times is through diversification and long range investing. Try to get fast growth in these conditions you’re likely to lose. It might be an idea to actually pay someone to help you look at your financial options, although right now even they might be a bit uncertain as nothing happening makes any sense.

  • oceanAEnglish
    3·
    9 days ago

    or is it hookers and blow time?

    Are you honestly asking for advice with this left field comment?

      • DaGeek247@fedia.io
        4·
        9 days ago

        ‘remove investments, have fun for the short time the world will exist’

        I don’t see this is being a good financial choice unless you honestly believe that nuclear war is about to go down. If the measles gets as serious as covid, it still wouldn’t be a good idea.

      • oceanAEnglish
        1·
        9 days ago

        Oh! I love futurama but did not get this reference :/

        • originalucifer@moist.catsweat.comOP
          4·
          9 days ago

          i think i got the futurama ‘blackjack and hookers’ line mixed up the the common hookers and blow trope. sorry!

          humor is my only defense against… well, almost anything. im also a graduate of the jon stewart school of self-deprecation