Should I Move My 401k Out Of Stocks

This is a good question. Well, should you move your 401k out of stocks? It depends. You need to ask yourself the question, "Am I comfortable taking equity risk in my portfolio?" Equities can be volatile, but they also have potential for growth. If you are nearing retirement you may want to become more conservative in your investments. This does not mean that you must eliminate equities entirely from your portfolio. You'll probably want to keep some to give you more growth potential to help outpace inflation. As far as investing in individual stocks in your 401k, you won't have that option. You should have the option to invest in mutual funds that invest in different equities. There is one exception: You may have the option to invest in individual stock of your employer inside your 401k. Now, when you roll over your 401k into an IRA you will have a lot more options. You can invest in individual stocks, index funds, bonds, small cap mutual funds, etc. But some things you want to keep in mind when answering the question "Should I move my 401k out of stocks?" include: 1. Determine if you have the risk tolerance to handle the volatility of stocks (equities). 2. You will typically want to get more conservative with your investments as you get closer (and into) retirement. 3. Use the same principles of investing your IRA that you would for your 401k. If you don't have the risk tolerance for equities in your IRA, then you probably should own equity-based mutual funds in your 401k. 4. If any investments in your retirement portfolio make it hard for you to sleep at night, then you probably shouldn't own them. To download the free 401(k) Rollover 10-Point Checklist go to http://retirementplanningmadeeasy.com/401krollover And be sure to check out more videos / articles and retirement information at http://retirementplanningmadeeasy.com/

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