So, a goal of mine was to put enough money in our companies Mass Mutual 401K fixed fund to give me a guaranteed $50,000 per year. I figured that would be $1.32M @ 3.8% (the rate 6 months ago when I hatched the plan). We would have an additional $1.32M in the market to put our AA at 50/50. My wife absolutely loved the plan because her "female security genes" liked having the guarantee. We are really frugal and $50K goes pretty far for us. It dropped to 3.75% at the beginning of last quarter, which wasn't a huge deal but a few days ago at the start of Q4 it dropped to 3.15%.
How do you guys handle changes like that? Do I just continue with my plan (moving money to the fixed fund) with the hopes that it will go back up in 2.5 years when I retire or was I unrealistic with the hopes of 3.8% in the 2020's?
So you don't have to grab your calculator, $1.32M @ 3.15% = $41,600 / year. A substantial drop. I've been moving $50K per week from an S&P fund to the fixed fund. We are around 40/60 at this point in the 401K.
How do you guys handle changes like that? Do I just continue with my plan (moving money to the fixed fund) with the hopes that it will go back up in 2.5 years when I retire or was I unrealistic with the hopes of 3.8% in the 2020's?
So you don't have to grab your calculator, $1.32M @ 3.15% = $41,600 / year. A substantial drop. I've been moving $50K per week from an S&P fund to the fixed fund. We are around 40/60 at this point in the 401K.