Diversification was the goal but what I found out was all the diversification happens within a closed ecosystem. IOW, your 401k/IRA gives you the freedom to move money around but if you stop and thing about they set the boundaries - not me. In my case, I found out the “safest” harbor is not really safe at all, My Benny Bucks are still within the reach of the casino. There really is no way to say - cash me in - I’m going home.
I’m guessing that is true for everyone but what do I know? I am new to this situation.
“There really is no way to say - cash me in - Im going home.”
Actually, I think there is, at a cost — pay your federal and state taxes and early withdrawal penalty of 10% in addition, possibly additional early withdrawal penalty to your state as well. Check with your 401k plan.
Of course, I wouldn’t recommend withdrawing your money because you won’t have much of it left.
Most 401ks do offer options of stock funds, bond funds, money market (which is cash) and those funds usually do about as well as some average funds. What makes you think you are so investment savvy that you could do better on your own?
I’ve seen many people like you who get such idea in their head, then unscrupulous people take advantage and sell them property in the moon and so on — I am being sarcastic, but they are being offered “better” investment options, then they come crying, when they find out they’ve been scammed. Even supposedly sophisticated investors fell for the Madoff scams — people get greedy, they aren’t happy with “average” return, then they end up losing it all.
Looks to me you are on your way there...