I have a coworker that I was speaking to about 401k investments. I mentioned that both my 401k and roth ira were in target date retirement funds at the moment. This means ~90% stock and 10% bonds.
He asked if I was locking in my 401k gains by switching to bonds with a rebalance. When I asked him to be more descriptive about when to go back into stocks the explanation I got wasn't exactly clear. All I got out of it was that when you hit a yearly gains target, you switch to bonds until the next crash then go all stocks.
Is there a way to "lock in your gains" in a 401k? Is he basically just recommending that I try and time the market? All I've really found is people selling options plans that puts a floor on your 401k balance.
Submitted April 16, 2017 at 12:55PM by Willskydive4food http://ift.tt/2pmQawN
