I have a pretty aggressively allocated 401k, since retirement is 35+ years out. Question:
If I knew (obviously I don't) that a recession we're coming, is there any reason why I couldn't or shouldn't rebalance my current allocation heavily towards safer assets?
Wouldn't this in effect "lock in" my equities profits?
Since I don't want to micromanage my 401k, I would keep my monthly contributions "appropriately balanced", buying equities as the market rises and dips. Once the market lowers significantly, I would then rebalance my allocations appropriately as well, thereby buying back into equities at a lower price?
What am I missing?
Thanks!
Submitted July 13, 2018 at 12:12AM by shitty_planner https://ift.tt/2uoR1h4
