Need some help on this 401K

[HF63]

I am trying to help a good friend that is looking to retire in Aug 2019.

He needs some help in minimizing the losses on his 401K between know and Aug/ 2019. Here are some of the choices besides the stocks which he does not like.

1. Bond Index
2. 2020 select bond: 50% is invested here
3. 2022 select bond: 50% is invested here
4. 2024 select bond
5 Government securities
6. Tips

At this point, probably tips might be the only choice to go 100% until Aug/ 2019 his retirement date and birthday. He turn's 70 and has a very good pension plan and social security.


I am missing anything

Thanks for the help,

speedy, wife calls me perro flojo which is lazy dog

 

[LOL!]

If he doesn't want to lose any money, then he should see what else is in his 401(k). Perhaps a money market fund or a stable value fund.

But if he doesn't mind losing a little money, then I would not suggest any of those options. What are all the other options?

BTW: TIPS may lose money, too.

Just because he is retiring in August 2019 does not mean he will spend all the money in his 401(k) in 2019. He may spend it over the next 20 or 30 years, so I think it should be invested with that time frame in mind.

 

[Sunset]

Since his money is supposed to last him 20+ years, he should really have some in stocks, being all in bonds could mean he loses money due to inflation.

If he has been invested like this for the past 5 years, he has lost out on a huge gain of 86.65% for the broad stock market. (example VTI).

 

[HF63]

Thanks for the replies,
there are no other options like a money market fund or stable fund.

He turns 70 and see no need for stocks any more, the pension plus social security it is 90% of his salary, plus no mortgage.

The plan is to do a transfer at retirement and take a certain amount for spending, no grand kids or relatives.

 

[LOL!]

One should find out what "government securities" mean.

In 2008, I invested in a fund that had "Government Securities" in its title, but it turned out it could invest up to 20% in other bonds according to the prospectus. And the fund invested in Countrywide paper and lost about 10% of the money I invested.

 

[kgtest]

One should find out what "government securities" mean.

In 2008, I invested in a fund that had "Government Securities" in its title, but it turned out it could invest up to 20% in other bonds according to the prospectus. And the fund invested in Countrywide paper and lost about 10% of the money I invested.

Countrywide. now theirs a name I hadn't heard in some time.