I have a retirement account for a previous job; I no longer make contributions to it. It just sits there. Now, around 60% of it is in stocks (I’m 36, so I think this is roughly the recommended mix); the rest is in more conservative stuff. Looking at my recent statement, I see that my portfolio lost over $4000 last quarter, almost entirely due to this 60%. My wife wants me to transfer half of my stocks to guaranteed-return instruments like bonds or T-bills until the market recovers (whenever that is). I don’t know if this is such a hot idea. What do you think?
FWIW, I’m keeping the distribution the same (stock-heavy) in the retirement fund I am currently contributing to, on the theory that the more cheap stocks I can buy now the better. I’m just curious about the allocation on a fund to which I no longer contribute.