403b Funds -Sucker's move or better late than never?

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Septimus's picture
Septimus
Status: Silver Member (Offline)
Joined: Aug 19 2008
Posts: 200
403b Funds -Sucker's move or better late than never?

My dilemma: I managed to avoid the worst of the downturn by moving almost all of my 403b funds from equities to treasuries in Feb 2008. So far, so good. Of course, they have sat there ever since and I missed out on the run up within the current depression. I also belive the dollar is doomed. Fidelity has a gold fund I can move money into but. Naturally, gold (and this fund) are at or near records highs at the moment. My question, just to gauge CM reader sentiment is:

1. Is moving a good chunk of funds to this gold fund at this time a good move because the dollar is doomed, even in the short term?

Or

2.Wait to move funds because there will likely yet be another dollar rally which would make moving funds to the gold fund better sometime in the next few months rather than right now.

Or:

3. What else am I missing?

Thank you for your intuitive advice on this.

 

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3200
Re: 403b Funds -Sucker's move or better late than never?

I did essentially the same thing you did in Jan 2008 (best move ever made).  In Jan 2009 I rolled over about 60%  of my retirement plan into an IRA, a significant part of which is in physical gold and other PMs.  Another part is in a widely diversified fund with quite a bit of GLD in it.  It's doing well for me at the moment, but it's a scary economy out there.  I'm not recommending this, I'm just saying what has worked for me so far.

That being said, it appears that the dollar is heading down and gold up for the near term future.  A lot of people on this board will recommend physical over paper metals.  Good luck, we'll all need it.

Doug

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: 403b Funds -Sucker's move or better late than never?

I also have a 403b and fortunately I managed to avoid  most of the downturn last year by being mostly in cash.  Before the big runup in gold I had some the FSAGX (fidelity gold fund) and it did well.

More recently I moved a big chunk into an IRA at Sterling so I could buy physical PMs. That turned out pretty well too with the recent move in gold.

But I am still very nervous about being able to maintain the value of my accounts in this environment.

I don't like cash because the dollar is toast. Gold/silver has had a big run (is there more?). Stocks seem overvalued and may tank.

In my view there is less downside risk to PM than either cash or equities but what the hell do I know.

It is a difficult situation - is it not?

 

Ken

 

Septimus's picture
Septimus
Status: Silver Member (Offline)
Joined: Aug 19 2008
Posts: 200
Re: 403b Funds -Sucker's move or better late than never?

Thanks Ken and Doug,

I should mention that I am unable to get the $ out of the 403b unless I do not have my job (and I hope that does not happen). So, I am stuck with investing in funds that are offered in the plan (quite a few Fidelity funds but only one of them is PM related). If I could withdraw the $, I definitely would and probaly buy a lot of PM and other hard assets that are more of the preparation type items.

Since I can't wihdraw them now, it is a choice of various equity or bond funds, treasuries or this gold fund (mostly equities but some physical).

Quite a dilemma!

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 757
Re: 403b Funds -Sucker's move or better late than never?

How about an oil or energy fund as well as other commodities?

I am in the same dilemma and have kept some in cash, dispersed some into commodities funds but who knows where they will go from here.

I sympathize.

D

Septimus's picture
Septimus
Status: Silver Member (Offline)
Joined: Aug 19 2008
Posts: 200
Re: 403b Funds -Sucker's move or better late than never?

Oil and energy, good idea!

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