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Saturday, 12/10/2011 5:13:48 PM

Saturday, December 10, 2011 5:13:48 PM

Post# of 2930
I seen a post on one of the other boards regarding 401K's. The advice was to put your 401K into cash. I'm no financial professional, I do have an IRA account for myself and my wife.

The last thing I would want to do is take our IRA's to cash. 1st let me say that I don't invest in our IRA's using the SPX Cycles or any other system. 401K's & IRA's are LONG TERM INVESTMENTS, they are not day trading accounts. I believe one should take into account how long you have before retirement. If you have 5 years or less before retiring than yes you need to take less risk.

Also, the types of stock investments one should have in their retirement accounts is those that pay dividends. I know alot of financial managers recommend dollar cost averaging, which supposedly over the long run as the market goes up and down you will increase your holding & dividends. Yes some positions will be up and some down, but they want you to look at the entire portfolio. I'm not really a big fan of dollar cost averaging, my philosophy would be to put new money in a cash account and then wait for downturns in the market to add positions. If you build a well versified portfolio of good dividend producing stocks, you should never have to get out of the market until such a time you start drawing from your funds. Even then you should remain invested to a certain degree.

401K & IRA accounts aren't like regular investment accounts, you normally can't take capital gains losses, so when you sell for a loss in a retirement account, it's gone.

To me it is very foolish and incompetent for anyone to just say take your retirement money and put it into cash. This is your retirement money, not casino money.

Anyway, that's my opinion, take it for what it's worth. I've been retired since the age of 40.

JMHO, Lindy
"Buy low, Sell high, stay with your system. If your system breaks fix it."


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