i would not take out but if you have a 2025 contribution otherwise lined up i can see you wanting a guaranteed 4.25% over what we are feeling now (very bad)
Wrote this to someone else a few weeks ago about whether they should go to cash. It was about tariffs but you can substitute pretty much anything this admin is doing for “tariffs” here.
yeah like my main question is, when do i sink in the $7k i've put into my fidelity roth for this year, or should i just do it asap, and if so, which funds
no, you really shouldn't touch anything you don't need for decades even if it feels scary. it will recover from whatever happens in the next 4 years. and if it doesn't then we're FUCKED fucked and Roth vs CD won't matter
sure, I mean if you want to pull money from institutions you don't want to support anymore that's a whole other ballgame than "I'm scared should I change my investments to protect my money"
There are funds that take ethical considerations into account in their investment decisions while still trying to provide good returns. Those have to be evaluated on a case by case basis.
Yes, and I think that it’s going to get harder to find and maintain that balance with the kind of manipulations and destabilization that are playing out. Exiting the stock market altogether for secure community oriented vehicles (bonds? Impact funds? REIT? Idk!) may make more sense.
maybe but I think at this point that's all speculation and conjecture. I would not advise people who aren't very comfortable with financial planning to start making rash decisions based on a whim during this kind of chaos
You can move your investments in there to something safer, but absolutely don't withdrawal it. Remember you're planning for 30 years from now, not 4 years from now.
If you were an investor who 5 years ago (Feb. 2020) correctly guessed that Trump would botch Coronavirus response, tank the economy and kill a lot of people, congrats!
But unless you timed your retreat perfectly, you missed out on a 33% gain over the next 12 months.
I've had the same thought lately, but my age + the tax penalty makes it not worth it. The company providing your Roth account should give you the option to move into less volatile positions if you want to guard against a potential market downturn.
I made a similar mistake during the market downturn in 2018. All I did was miss a bunch of gains. Then I finally bought back in at the peak in 2021 and lost a bunch of money. Just leave it alone.
We moved a large asset into a more conservative, secure asset in Nov after the election. We are in 60s, looking at GOP attacks on social security and it allows us to sleep at night. Do you.
There are for sure safe market assests even in a recession. Bond etfs and such. Sgov, spaxx. Something like that. You don’t want to nuke the Roth benefits if you don’t truly have to. But I’m no expert so research along those lines.
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If you were an investor who 5 years ago (Feb. 2020) correctly guessed that Trump would botch Coronavirus response, tank the economy and kill a lot of people, congrats!
But unless you timed your retreat perfectly, you missed out on a 33% gain over the next 12 months.