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Retirement Decisions

August 4th, 2009 at 05:45 pm

It's time to make a decision regarding retirement investing. We have some of our retirement sitting in cash. Technically, about 20% of our total retirement.

This was due to a 401K rollover. We had a hard time deciding which fund to invest it in at the time. So, we put it in cash. We talked about it once in awhile, but we never did anything. Then the market took a dive and it didn't feel right to jump into the market. It felt better to have that money at least earning some interest.

But it appears the market is recovering, and it is time to get that money invested at still relatively lower prices. Of course, we still need to decide where to put it.

Out of all personal finance decisions, this is the one I like the least. There are so many funds and types of funds. It's overwhelming. I overthink the decision and then can't make one. I've worked for a mutual fund company, so I've been trained to read the prospectus. It actually does help narrow it down, but it takes time.

Any advice or tips, so I don't keep stumbling over myself?

Posted in Saving | 2 Comments »

2 Responses to “Retirement Decisions”

  1. jillybean Says:
    August 4th, 2009 at 06:51 pm 1249408292
    1249408292

    I'd start with the "big picture" view and see if you and your husband can decide on a allocation plan for your retirement funds (how much cash/bonds/stocks/intl, etc), compare that to what you already have and see where you are lacking. I have a Finance degree too and I sometimes fall into the analysis/paralysis getting bogged down in the details. Maybe the overall allocation decision will help you narrow your options.

  2. thewealthbuilder Says:
    August 5th, 2009 at 10:47 pm 1249508847
    1249508847

    I feel your pain. Last year I finally gave in and hired an investment advisor. I'm extremely pleased with this decision as we share the same investment mindset. Disciplined investing over a long-term horizon with proper allocation provides the best opportunity to build wealth. In order to give you some options, visit fundadvice.com. Here you will see a set of suggested portfolios as well as a ton of useful information on building proper portfolios. You should download the podcasts too as they are informative. Remember, long-term investors are not distracted by short-term market swings. You've been sitting idle in cash earning a paltry 1% and the S&P 500 has gained 51% since its earlier lows this year. Good luck and hope this information is useful.

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