Sh*ty 401k

M

Mr. M

I'm relatively new to this forum, been perusing for some time. Not sure if this is the appropriate section though. I always wanted to do my own thing and trade the markets when I had enough money, and self education, to do so but right now I'm stuck with a 401k that provides me essentially nothing to choose from to diversify my retirement. I don't have any idea how I can make this work. I might as well pull all my money take the hit on the tax penalty and risk investing it and all future income I allocate to retirement the way I want. Bond ETFs are pretty much pointless now, stocks are going to hit the fan when Ben flips off the switch on the presses. Emerging markets? What emerging markets? Sigh. Here's what I'm dealing with for choices:


CRMMX CRM Mid Cap Value Inv Fund

CYLRX Columbia High Yield Bond R3

FNITX Fidelity Advisor New Insights T Fund

IPTSX ING PIMCO Total Return Port Srv

IRMGX ING Retirement Moderate Growth Portfolio Class ADV

IRSSX ING Russell Small Cap Index Port S

LZOEX Lazard Emerging Markets Equity Open

MVRRX MFS Value R2 Fund

RERCX American Funds EuroPacific R3

STIRX Pioneer Strategic Income Fund R

I've been doing well so far this year but I can't see any of these choices being a safe haven to fight the reversal that is inevitable that is coming soon. I'm not as researched as many of your are with regards to, well, everything. I'm not a day trader like you guys. Am I over reacting here?
 
Never never never pull out your 401K money and pay the penalty.

If you change jobs you can roll the 401K into a self-directed IRA.
 
Maybe not optimal, but are there no money market or daily interest (DIA) account options? I'm in Canada so I'm not sure of the ins and outs of 401k's but I believe all registered self directed sponsored plans have these options available or as defaults if people dont specify fund allocations. At least in cash or equivalents you could insulate yourself.
 
Quote from jo0477:

Maybe not optimal, but are there no money market or daily interest (DIA) account options? I'm in Canada so I'm not sure of the ins and outs of 401k's but I believe all registered self directed sponsored plans have these options available or as defaults if people dont specify fund allocations. At least in cash or equivalents you could insulate yourself.
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What the original poster means is the funds listed are the only choices offered in his employer-sponsored 401(k).

You are stuck with whatever choices your employer offers.

You cannot roll out to a self-directed plan until you leave the company.
 
Quote from Mr. M:

I'm relatively new to this forum, been perusing for some time. Not sure if this is the appropriate section though. I always wanted to do my own thing and trade the markets when I had enough money, and self education, to do so but right now I'm stuck with a 401k that provides me essentially nothing to choose from to diversify my retirement. I don't have any idea how I can make this work. I might as well pull all my money take the hit on the tax penalty and risk investing it and all future income I allocate to retirement the way I want. Bond ETFs are pretty much pointless now, stocks are going to hit the fan when Ben flips off the switch on the presses. Emerging markets? What emerging markets? Sigh. Here's what I'm dealing with for choices:


CRMMX CRM Mid Cap Value Inv Fund

CYLRX Columbia High Yield Bond R3

FNITX Fidelity Advisor New Insights T Fund

IPTSX ING PIMCO Total Return Port Srv

IRMGX ING Retirement Moderate Growth Portfolio Class ADV

IRSSX ING Russell Small Cap Index Port S

LZOEX Lazard Emerging Markets Equity Open

MVRRX MFS Value R2 Fund

RERCX American Funds EuroPacific R3

STIRX Pioneer Strategic Income Fund R

I've been doing well so far this year but I can't see any of these choices being a safe haven to fight the reversal that is inevitable that is coming soon. I'm not as researched as many of your are with regards to, well, everything. I'm not a day trader like you guys. Am I over reacting here?
More...

You will have to hedge your 401(k) investment outside the plan in a personal account somewhere else. This is not easy but can be done with options.
 
Quote from comintel:

What the original poster means is the funds listed are the only choices offered in his employer-sponsored 401(k).

You are stuck with whatever choices your employer offers.

You cannot roll out to a self-directed plan until you leave the company.
More...

This is exactly the case. Sorry if I was vague.
 
Quote from comintel:

You will have to hedge your 401(k) investment outside the plan in a personal account somewhere else. This is not easy but can be done with options.
More...


I just started contributing into my 401(k). I only have about $10K in it as it stands. How would I go about hedging it. Roth IRA? Money Market? Space under my mattress?

And what out the slim choices i have in the 401(k) is the best bet to park what I have considering the nose dive this market is primed to take?

Thanks guys.
 
Quote from comintel:

What the original poster means is the funds listed are the only choices offered in his employer-sponsored 401(k).

You are stuck with whatever choices your employer offers.

You cannot roll out to a self-directed plan until you leave the company.
More...

Sorry I wrote self directed by mistake and didn't erase it. I'm curious because my wife has an employee sponsored plan with a limited number of funds offered but she did not choose her allocations (she didn't even know she was contributing). As a default, they just stuck her funds in a daily interest fund, which was not listed in her package. I'll never forget it because she managed to escape 08-09 unscathed. Just mentioning it, since I remember she was clueless that anything was even wrong with the economy!
 
Quote from stevegee58:

Never never never pull out your 401K money and pay the penalty.

If you change jobs you can roll the 401K into a self-directed IRA.
More...

I have to agree with Stevegee58....

$10K is nothing ... no offense... very little can be done with that level of capital in terms of investing within your 401k...

if your plan admin allows partial rollovers, then you can roll a portion to a SD-IRA plan and your choices for investing are relatively limitless...

investing within a SD-IRA is simple and one of the best things one can ever do... you have to understand the rules, but you also need significant assets... lots of things you can do with it... but you need to be really well capitalized...
 
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