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What advice do the board gurus give in regards to any potential 401k adjustments tomorrow.

Posted on 8/4/24 at 11:33 pm
Posted by Kingshakabooboo
Member since Nov 2012
1061 posts
Posted on 8/4/24 at 11:33 pm
Here is my scenario. Roughly 200k in my 401. Had half in my companiy’s stock and the other half in a semi aggressive mutual fund. Not long ago my company announce that it was going to do a 4 to stock split in September. I moved all my current and future investments into my company stock 100% to take advantage of the future split. Should I just let it ride. Should I move some or all to bonds? What do the experts say?
This post was edited on 8/4/24 at 11:36 pm
Posted by Klondikekajun
Member since Jun 2020
1407 posts
Posted on 8/4/24 at 11:39 pm to
Too late now to do anything.

By the time your 401K modifications settle in a few days, it'll be a memory.

Just keep contributing and ride the coaster.

Also no way to comment on your company stock without knowing company or sector.

It could be anything from Big 7 to an uncapitalized failing startup.....

Posted by LSU1018
Baton Rouge
Member since Feb 2007
7304 posts
Posted on 8/4/24 at 11:43 pm to
Even without knowing the stock, way too risky for me to have 100% in anything.
Posted by PlaySomeHonk
Montegut La and Liberty MS
Member since Jan 2023
443 posts
Posted on 8/4/24 at 11:43 pm to
Definitely diversify, you’ve got too many beers in the same cooler.

I’m retired and almost totally in fixed income/bonds and it appears that rates wiii be coming down as we head toward a possible recession, so I’m looking to buy a few more corporate/muni/treasury bonds before rates come down.

If you’re below 40-45, stay in the market 80/20 or so but split that shite up into 15-25 different stock equities.
Posted by LSURussian
Member since Feb 2005
131077 posts
Posted on 8/4/24 at 11:52 pm to
quote:

What advice do the board gurus give in regards to any potential 401k adjustments tomorrow.
Increase the amount of your contributions per pay period.
Posted by Florida_Man1981
Member since Jan 2024
399 posts
Posted on 8/5/24 at 12:25 am to
Don't look at it.

Keep contributing at least 10%.
Posted by TigerDeBaiter
Member since Dec 2010
10484 posts
Posted on 8/5/24 at 12:26 am to
Unless you have some in “cash” money market funds and want to buy the dip it’s probably best not to do anything. NFA
Posted by Penrod
Member since Jan 2011
47080 posts
Posted on 8/5/24 at 5:46 am to
You are a low information investor just like everyone else posting in this thread (certainly including me). You should not be playing games with your money; it will only lead to underperforming the market.

As someone else already posted, this event is already in the rearview mirror as far as you are concerned. When you get time you should move all of your money into a fund that is designed to safely track the market. This will be a mutual fund, indexed fund or ETF. You should look for something with very low management fees, because the people who manage it are generally low information guys as well.

Once you have followed the advice above you should should forget your investments until you are about 55. At that time you can start shifting them to safer stuff with lower returns.
Posted by Tigerfan14
Member since Jun 2014
1453 posts
Posted on 8/5/24 at 5:46 am to
Does your company happen to be Cintas? I’d just let it ride.
Posted by Asharad
Tiamat
Member since Dec 2010
6043 posts
Posted on 8/5/24 at 6:38 am to
quote:

What advice do the board gurus give in regards to any potential 401k adjustments tomorrow
Don't change ANYTHING.
Posted by Rize
Spring Texas
Member since Sep 2011
17399 posts
Posted on 8/5/24 at 7:24 am to
quote:

Here is my scenario. Roughly 200k in my 401. Had half in my companiy’s stock and the other half in a semi aggressive mutual fund. Not long ago my company announce that it was going to do a 4 to stock split in September. I moved all my current and future investments into my company stock 100% to take advantage of the future split. Should I just let it ride. Should I move some or all to bonds? What do the experts say?


Do you work for Cintas?
Posted by udtiger
Over your left shoulder
Member since Nov 2006
108007 posts
Posted on 8/5/24 at 7:30 am to
quote:

Just keep contributing and ride the coaster.


This.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38591 posts
Posted on 8/5/24 at 7:37 am to
quote:

Not long ago my company announce that it was going to do a 4 to stock split in September. I moved all my current and future investments into my company stock 100% to take advantage of the future split.


Posted by Free888
Member since Oct 2019
2437 posts
Posted on 8/5/24 at 7:42 am to
Never put 100% of your investment into your own company (Enron taught us this). You’re exposed to both employment and investment risk.
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10546 posts
Posted on 8/5/24 at 7:55 am to
If you have a money market in your retirement it might not be a bad idea to deploy that capital at a lower price point. I do, and I will, along with proceeds from portfolio downside insurance (VIX calls).

Can I time the bottom? No. Will my newly deployed funds be in at a lower price point than last week? Yes.

I always have a cash position and always insure my portfolio to the downside so I can buy at lower price points.

If you don't have cash available, my instinct would be to do nothing. Just watch.

Japan, ME and the election are significant events worth watching. If equities and crypto decline no more than they are now, I'm not sure it's time to get excited. Getting excited and making strategic moves being different to me.

A lot of this depends on one's age and personal situation. I suspect those that are leveraged and younger will actually like this depending on what the Fed does. It's reported that they are considering meeting. I think that was obvious after Japan yesterday, notwithstanding the comments on here yesterday evening / night calling that nonsense.

Most of the time opening isn't really a good time to rebalance. This said if you're a buyer, today's opening might be decent. I take that out of play and let VIX tell me when price points are lower, maybe not the lowest, but lower in a long term view.

There is almost always opportunity depending on one's situation.
This post was edited on 8/5/24 at 7:57 am
Posted by UltimaParadox
North Carolina
Member since Nov 2008
47298 posts
Posted on 8/5/24 at 8:16 am to
quote:

Had half in my companiy’s stoc


Way too much concentration, I would diversify as soon as possible.

quote:

other half in a semi aggressive mutual fund.


No idea what this means

quote:

I moved all my current and future investments into my company stock 100% to take advantage of the future spli


Stock split makes no difference

quote:

Should I move some or all to bonds?


Seems like a terrible idea, unless you are ready for retirement and have enough money. We don't have enough information here to make a true helpful suggestion.

I would suggest diversifying your 401k, to low cost broad index funds as soon as you can. Sooner than later, as what happens tomorrow probably really will just be noise on your path to retirement.
Posted by Dixie2023
Member since Mar 2023
3533 posts
Posted on 8/5/24 at 8:19 am to
I’m 57 and want to retire at 62. I’ll be calling fidelity to ask what to do to keep what I have safe. I’m too old and close to retirement to ride it out.
Posted by weptiger
Georgia
Member since Feb 2007
11237 posts
Posted on 8/5/24 at 8:27 am to
I am 5-6 years from retirement and will likely ride with it. It depends on how aggressively you are invested through your 401k. I am more than I should be, but don’t need the money tomorrow. Any changes to be made will be done during more stable market times.
Posted by tigerfoot
Alexandria
Member since Sep 2006
59017 posts
Posted on 8/5/24 at 8:32 am to
My novice view is it has been too late to do anything for about 2 weeks. Yes, today is going to be messy as hell, but Friday was no picnic. The biggest mistake in my life financially was moving money out of the market during the covid dip.....cost me a bunch.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38591 posts
Posted on 8/5/24 at 8:38 am to
quote:

I’m 57 and want to retire at 62. I’ll be calling fidelity to ask what to do to keep what I have safe. I’m too old and close to retirement to ride it out.


Most downturns are measured in months, not years. You think this is gonna be worse than 07-08?
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