p********r
发帖数: 1980 | 1 If US does default, where to hide in 401K when people have limited options.
Clearly, most money market funds hold so called AAA bonds have to sell when
it is downgraded to D. So it will have to "break the buck". Can FED or the
treasury help to avoid such stampede? What other choices are available?
Would equity fund or any other bond fund do any better? International equity
fund?
P.S. this is not a post to discuss the probability of US default and not a
post to attract gold bug, because it won't be an option in the 401K. |
D*******a
发帖数: 3688 | 2 US may not default on bonds but other obligations, such as social security
pay. As a result, the individual bonds should maintain or lower the rating
by a notch or two. They will not all go to D.
.
when
equity
【在 p********r 的大作中提到】
: If US does default, where to hide in 401K when people have limited options.
: Clearly, most money market funds hold so called AAA bonds have to sell when
: it is downgraded to D. So it will have to "break the buck". Can FED or the
: treasury help to avoid such stampede? What other choices are available?
: Would equity fund or any other bond fund do any better? International equity
: fund?
: P.S. this is not a post to discuss the probability of US default and not a
: post to attract gold bug, because it won't be an option in the 401K.
|
g*****g
发帖数: 34805 | 3 Consider US can print money, there will never be default. But there
may be super inflation. Gold is not an option for most 401K, I think
the best bet would be diversified international fund. Real estate
also hedges against inflation well. That's another place I would park
money.
.
when
equity
【在 p********r 的大作中提到】
: If US does default, where to hide in 401K when people have limited options.
: Clearly, most money market funds hold so called AAA bonds have to sell when
: it is downgraded to D. So it will have to "break the buck". Can FED or the
: treasury help to avoid such stampede? What other choices are available?
: Would equity fund or any other bond fund do any better? International equity
: fund?
: P.S. this is not a post to discuss the probability of US default and not a
: post to attract gold bug, because it won't be an option in the 401K.
|
s********i
发帖数: 17328 | 4 Not all bond holds us treasuries. Pick ones with minimum holdings. |
t*m
发帖数: 4414 | 5 for now, just hold cash.
.
when
equity
【在 p********r 的大作中提到】
: If US does default, where to hide in 401K when people have limited options.
: Clearly, most money market funds hold so called AAA bonds have to sell when
: it is downgraded to D. So it will have to "break the buck". Can FED or the
: treasury help to avoid such stampede? What other choices are available?
: Would equity fund or any other bond fund do any better? International equity
: fund?
: P.S. this is not a post to discuss the probability of US default and not a
: post to attract gold bug, because it won't be an option in the 401K.
|
p********r
发帖数: 1980 | 6 If there is an option for cash, I won't even be asking this question. I
would also like an option for international bond fund, or other sector funds
(like REIT mentioned by goodbug), but we only have technology sector fund
despite the company being a technology company. What was our plan
administrator thinking??
【在 t*m 的大作中提到】
: for now, just hold cash.
:
: .
: when
: equity
|
m*****i
发帖数: 628 | 7 can you rollover 401K to IRA without leaving the company? (my firm allows
that)
funds
【在 p********r 的大作中提到】
: If there is an option for cash, I won't even be asking this question. I
: would also like an option for international bond fund, or other sector funds
: (like REIT mentioned by goodbug), but we only have technology sector fund
: despite the company being a technology company. What was our plan
: administrator thinking??
|
s****i
发帖数: 2993 | 8 are you sure about it?
normally only people over 59.5 can do in service rollover.
【在 m*****i 的大作中提到】
: can you rollover 401K to IRA without leaving the company? (my firm allows
: that)
:
: funds
|
g*****g
发帖数: 34805 | 9 No option for cash? I think all 401K has an money market fund
option.
funds
【在 p********r 的大作中提到】
: If there is an option for cash, I won't even be asking this question. I
: would also like an option for international bond fund, or other sector funds
: (like REIT mentioned by goodbug), but we only have technology sector fund
: despite the company being a technology company. What was our plan
: administrator thinking??
|
m*****i
发帖数: 628 | 10 sure.
【在 s****i 的大作中提到】
: are you sure about it?
: normally only people over 59.5 can do in service rollover.
|
|
|
p********r
发帖数: 1980 | 11 Read my original post. The concern is that money market fund holds AAA rated
US debt that will drop in value if US defaults. It will most likely "break
the buck" as projected by many investment advisers, as they are required to
sell at the worst time to maintain the ratings of their holdings. There is
no option for FDIC insured fund.
【在 g*****g 的大作中提到】
: No option for cash? I think all 401K has an money market fund
: option.
:
: funds
|
p********r
发帖数: 1980 | 12 I know it is possible to borrow the money from 401K to minimize the risk.
But it is too much hassle for me to consider it. I will probably just
select a bond fund with least amount of holding of US treasury...if there
is still no agreement by the end of this week.
allows
【在 m*****i 的大作中提到】
: can you rollover 401K to IRA without leaving the company? (my firm allows
: that)
:
: funds
|
p********r
发帖数: 1980 | 13
Read the news please. Unfortunately, FED prints the money but treasury
borrows the money. It may not lose much value short-term because FED can
go out to by treasury regardless of its credit rating. But most funds are
so stupidly designed that they have to sell to maintain their overall
credit rating if US just delays the debt payment for a few days.
【在 g*****g 的大作中提到】
: Consider US can print money, there will never be default. But there
: may be super inflation. Gold is not an option for most 401K, I think
: the best bet would be diversified international fund. Real estate
: also hedges against inflation well. That's another place I would park
: money.
:
: .
: when
: equity
|
s********i
发帖数: 17328 | 14 i think it is time to stay away with US assets (stock and bond). Both are
too high because of FED. I moved my money to non-US bond at the least after
the debt ceiling is over. |
a***s
发帖数: 5417 | 15 social security is from specific account. It is only possible for it to
reduce payment, rather than default payment.
【在 D*******a 的大作中提到】
: US may not default on bonds but other obligations, such as social security
: pay. As a result, the individual bonds should maintain or lower the rating
: by a notch or two. They will not all go to D.
:
: .
: when
: equity
|
a***s
发帖数: 5417 | 16 US is still a super power. Have you ever heard of a super power default?
US will default only if it lost super power position after losing a major
war. (Looking back the history of civilization, all super powers of the past
lost their dominant position after losing military edge and then lost the
control of world resource.)
I agree that all super powers eventually demise. But US is not in the
process of demising yet. Even if China grows mighty enough, she would not
likely to wage a war against US before our generation dies out.
.
when
equity
【在 p********r 的大作中提到】
: If US does default, where to hide in 401K when people have limited options.
: Clearly, most money market funds hold so called AAA bonds have to sell when
: it is downgraded to D. So it will have to "break the buck". Can FED or the
: treasury help to avoid such stampede? What other choices are available?
: Would equity fund or any other bond fund do any better? International equity
: fund?
: P.S. this is not a post to discuss the probability of US default and not a
: post to attract gold bug, because it won't be an option in the 401K.
|
k***n
发帖数: 3158 | 17 USSR
Russia is still very strong in terms of military power
past
【在 a***s 的大作中提到】
: US is still a super power. Have you ever heard of a super power default?
: US will default only if it lost super power position after losing a major
: war. (Looking back the history of civilization, all super powers of the past
: lost their dominant position after losing military edge and then lost the
: control of world resource.)
: I agree that all super powers eventually demise. But US is not in the
: process of demising yet. Even if China grows mighty enough, she would not
: likely to wage a war against US before our generation dies out.
:
: .
|
s********i
发帖数: 17328 | 18 US default means it won't pay its debt. Just because it is super power, nobody can do anything. Just like FED printing money, nobody can stop it. just as you lend money to mafia, if mafia decide to default, what can you do? best way is NOT to lend to mafia if you can. if you have to lend, then there is no way to hide.
past
【在 a***s 的大作中提到】
: US is still a super power. Have you ever heard of a super power default?
: US will default only if it lost super power position after losing a major
: war. (Looking back the history of civilization, all super powers of the past
: lost their dominant position after losing military edge and then lost the
: control of world resource.)
: I agree that all super powers eventually demise. But US is not in the
: process of demising yet. Even if China grows mighty enough, she would not
: likely to wage a war against US before our generation dies out.
:
: .
|
w*****y
发帖数: 2182 | 19 Most 401k won't have option for international bond funds. IRA probablly has.
If move money to non-us equity fund, I won't think the equity fund would
reserve value while US debt ceiling probalem is so big that causes US
default.
So overall I would still think most likely US bond is still holdable, which
may not pay interest in the short term.
after
【在 s********i 的大作中提到】
: i think it is time to stay away with US assets (stock and bond). Both are
: too high because of FED. I moved my money to non-US bond at the least after
: the debt ceiling is over.
|
o******8
发帖数: 620 | 20 money market is not cash, even though it's close.
USA Today has an article on this:
http://www.usatoday.com/money/perfi/columnist/waggon/2011-07-21
Diversification is the only bet we can have.
【在 g*****g 的大作中提到】
: No option for cash? I think all 401K has an money market fund
: option.
:
: funds
|
g*****g
发帖数: 34805 | 21 I know what break-the-buck is. It's about taking the posion.
Break the buck doesn't make 401K 201K like you'd see a couple
of years ago.
【在 o******8 的大作中提到】
: money market is not cash, even though it's close.
: USA Today has an article on this:
: http://www.usatoday.com/money/perfi/columnist/waggon/2011-07-21
: Diversification is the only bet we can have.
|
