My mom didn't start investing in her 401k until she was around 50 (2004), so not too long before the global recession. More importantly, in the past 8 years since the recession bottomed, to make up for her late start, she's been putting a lot into her 401k. This conveniently coincided with our most recent bull market. About 45% of her 401k is in FGCKX, a 99% stock that is already up 20% this year alone (215% since the recession ended). Her remaining 401k is in another fund, FFKDX, that is also stock heavy (60% stocks, 30% bonds, 10% cash) but this one isn't performing as well, pretty flat the past 5 years, and seems to have stopped paying dividends 2 years ago.
Overall, about 80% stocks, which for someone at 62, was a bit risky. Needless to say, her 401k is doing very well, and I think the US stock market is due for a correction, and with 4 years to retirement, that's not something we need. She's had a good run, and now I'm wondering where to move it to within her 401k. I've heard of stable value funds, would moving into 50% SVF be a good idea? She can tolerate some risk, as she probably won't need her whole 401k, but I want to reduce her stock holdings to max 25%. I'm also liking the idea of buying a fund that is largely foreign currency, as I believe the USD is overvalued, and many currencies come to mind that I think are due to strengthen against the dollar (CAD, JPY, for example). Any guidance would be helpful considering my financial outlook.
Submitted March 15, 2017 at 07:37PM by swordsofsabbath http://ift.tt/2mKJxR9
