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A straight to cash strategy would seriously underperform over the long run, as would a lowest risk strategy. The big risk for 401(k)s seems to be either taking on too much risk or too little risk. Seems to me the best strategy though, if one has time and control, would be to put half a 401(k) in cash and half into bonds - then move a portion of that cash into an index fund every time the market drops a certain percentage.
Jan 10 00:53 am
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All Comments by donzelion »50% Returns, No Risk? [View article]
Much more work than the average worker is willing to put into retirement - but in the future, we'll have to work harder (and smarter).