According to Credit Suisse analysts, mortgage financiers Fannie Mae and Freddie Mac could write down a collective $16 billion in the fourth quarter related to deteriorating subprime and Alt-A mortgage investments.
The analysts wrote in a note today that Freddie stands to write down between $8 to $11 billion when it announces fourth-quarter earnings, while sister Fannie faces losses between $2.25 and $4 billion.
“For the past several months, we have become increasingly concerned about the potential capital impact on the GSEs’ capital positions from ‘other than temporary impairments’ on subprime and Alt-A-backed securities within their investment portfolios that were originally rated ‘AAA’,” the analysts said in a statement.
Higher delinquencies associated with subprime and Alt-A mortgages have led to a slew of credit rating downgrades recently, creating more capital pressures for the strained government-sponsored entities, analysts said.
The firm’s analysts, who currently rate both companies “underperform”, said the companies have recorded “minimal” unrealized losses thus far, and noted that significant writedowns at banking giants such as Merrill Lynch and Citi could force similar actions among the GSEs.
Late last week, Morgan Stanley analyst Kenneth Posner downgraded Fannie Mae to “underweight” from “equal-weight” and cut his price target on the nation’s largest mortgage financier to $25 from $39.
He also cut his target on Freddie Mac to $30 from $47, maintaining his “equal-weight” rating on the stock.
Shares of Fannie Mae ended the day down 8 cents, or 0.25%, to $32.07, while Freddie Mac climbed $1.02, or 3.69%, to $28.68.
Fannie and Freddie own or guarantee roughly 40% of the $10.9 trillion U.S. residential mortgage market, but severe losses could jeopardize their ability to capture more market share.
Online banking has made managing money easier than ever. However, it has also led most people to rely solely on digital assets.
Precious metals are a popular investment choice for people wishing to buy a tangible asset that retains its value over time. In particular, gold and silver generally maintain their value even when the stock market faces major financial fluctuations.
They also do well in times of inflation and political uncertainties. When traditional stocks fluctuate due to these external factors, precious metals only become more valuable.
Investors who prefer a hands-off approach have the option of purchasing gold and silver stocks. These stocks are traded daily just like any other stock. However, many people prefer to keep a physical store of their precious metal.
While relatively illiquid, buying physical gold and silver is typically viewed as a long-term investment. It’s certainly a practical option if you’re concerned about inflation or the future of fiat currency.
Best Places to Buy Gold and Silver Online
eBay and Craigslist are both great places to start. But unless you’re confident that you’re dealing with a reputable seller, you might want to look into other sites that specialize in precious metals.
To help you find the best place to buy gold and silver, we’ve compiled a list of the best online gold dealers.
Money Metals Exchange
Money Metals Exchange, or MoneyMetals.com, has received several accolades, including the “Best Overall Gold Dealer” by Investopedia.
They’ve also done over $2 billion in transactions.
Money Metals Exchange has an A+ rating from the BBB. They offer 24/7 online support, indicating a strong commitment to customer service.
Products include gold, silver, rhodium, palladium, and platinum. You can also invest in a self-directed precious metals IRA.
You can often find great deals and promotions on Money Metals Exchange, so it’s a site you may want to bookmark.
Silver Gold Bull
Silver Gold Bull offers a suite of services for their customers. In addition to buying and selling through the company’s website, you can also store your hard assets in their secure facilities.
Another helpful feature is an automated spot alert. You can get up-to-the-minute data on where prices are throughout the day and buy when they hit your target price.
Plus, the Silver Gold Bull sales team is full of seasoned veterans, so you can get answers to your questions from people who truly know their stuff.
The company sells a wide range of gold, silver, platinum, palladium, copper, and collectibles online and over the phone.
Gainesville Coins
With an A+ rating from the Better Business Bureau, Gainesville Coins has been keeping customers happy for more than ten years.
In fact, the company has also received a five-star rating from the National Inflation Association—the only bullion dealer to receive such a distinction.
You’ll find a wide selection of gold, silver, platinum, and other metals like copper, palladium, and rhodium on the Gainesville Coins website.
The company also sells pre-1933 gold and has an extensive clearance section with time-sensitive deals. In addition, you can calculate shipping based on your zip code and items placed in your cart. Only Florida residents pay sales tax on their purchases.
Gainesville is one of the best places to buy gold online.
Golden State Mint
Golden State Mint is a trusted source for premium precious metal products, providing buyers direct access to top-notch items straight from the manufacturer.
With 40+ years of experience, the company inspects each piece with precision before shipment, ensuring its authenticity and quality.
Customers can rest assured that all products are brand-new, never previously owned or circulated.
Investing in precious metals for retirement? Golden State Mint offers expert support in establishing an IRA account, stocked with an array of products that fully comply with IRS standards.
Whether you’re a seasoned pro or just starting out, Golden State Mint is committed to helping you achieve your investment objectives through purchasing physical gold and silver.
Provident Metals
What started as a precious metals trade show business has launched into one of today’s largest online bullion dealers.
Provident Metals holds several professional memberships. These include the American Numismatic Association, the Professional Coin Grading Service, and the Numismatic Guaranty Corporation.
Provident’s collections include gold, silver, copper, platinum, and palladium, with an extensive selection of each one. In addition to coins, rounds, and bullion bars, Provident Metals also sells U.S. and foreign coins, wholesale products, and IRA bullion products.
You’ll appreciate the company’s attentive service and timely delivery. And if you order $99 or more, shipping is free; otherwise, it costs just $5.95 to ship.
APMEX (American Precious Metals Exchange)
APMEX is one of the largest online dealers in the world, which allows it to pass along savings to its customers. This is due to the sheer volume of business it does each day. Not only can you buy silver, gold, and other metals, you can also sell or trade from your current holdings.
The selection is huge, covering the major precious metals, historic gold coins, “elite” coins, old banknotes, and foreign coins. It also has an extensive collectibles section with rare coins and currency from around the world.
Scottsdale Mint
Scottsdale Mint (formerly Scottsdale Silver) focuses on silver and gold while also offering each in different collectible series. They sell both types of metal in coins, bullion bars, and rounds, with a particular premium set on artistic minting.
For example, some recent popular collectible sets include a Vikings series and a Godfather set featuring images from the iconic movie franchise.
To qualify for free shipping with insurance, you must make a minimum purchase of $500. This may seem steep compared to some other companies providing free shipping at $99. However, much of the allure of Scottsdale Mint comes from the company’s creative minting process.
JM Bullion
Shipping is free on all JM Bullion orders over $199. They sell physical gold, silver, platinum, and other bullion that arrive directly at your door. They inspect every inventory item to ensure only quality products are sold. Payment options include Visa, MasterCard, PayPal, PayPal Credit, bank wires, paper checks, and Bitcoin.
JM Bullion is fully accredited at both state and federal levels. They also have reliable customer service that you can reach via phone or 24-hour Live Chat. Sign up for email, and they will mail you exclusive sales and promotions.
Kitco
Kitco has many precious metal types, including gold, silver, palladium, platinum, and rhodium.
The website also provides a slew of data and news to help you with your portfolio decisions. You can even download apps for gold news, market alerts, and scrap value calculations for your smartphone.
GoldSilver.com
As its name implies, GoldSilver solely sells gold bars, coins, and jewelry and silver bars and coins. They also sell products such as safes and storage containers. You can also create an account to sell back your gold bullion, gold coins, and silver bars through the website.
There’s a flat rate shipping fee of $25 for any order under $500. Otherwise, shipping, handling, and insurance are free. In addition to traditional payment options, GoldSilver also accepts PayPal.
Silver.com
Don’t be fooled by the name. While Silver.com could be the best place to buy silver online, they also sell various gold, platinum, and copper products. In addition to government mints, you can also find gold coins, gold bullion, silver coins, silver bars, and more from private domestic and foreign mints.
The order threshold for free shipping is high at $3,000, but their tiered flat rate shipping fees are reasonable. Smaller orders up to $299 cost just $4.95 for shipping and insurance. The highest tier of orders from $1,000 to $2,999 cost just $9.95.
SD Bullion
Silver, gold, platinum, and copper comprise SD Bullion’s core product line, with coins, bars, and rounds from around the world.
They also sell lead bullion in the form of ammo as well as vaults, survival food, and herbal medicine. In addition, SD Bullion offers weekly specials and currently has a promotion for all orders shipped at just $7.77.
Texas Precious Metals
Texas Precious Metals offers several unique features, including the ability to sign up for limit orders. For example, you can automatically place a standing order if gold or silver reaches your desired value.
All orders ship for free using UPS Next Day Air, and all orders ship within three business days of payment. The website offers a curated selection of gold coins, gold bars, silver coins, silver bars, and pre-1933 gold.
Golden Eagle Coins
Golden Eagle Coins is a place for gold and silver investors and collectors alike. Take one look at their website, and you’ll see why — their inventory is enormous.
Prices are updated in real time as their quotes come directly from the commodities exchange. This is a great site to use if you are researching when to buy.
Shipping is free on orders $99 and over. Also, be sure to check out their bi-monthly blog for new items and savings.
Gold Dealer
Quoted on CNN, CNBC, and PBS, Gold Dealer offers a complimentary newsletter written by industry masterminds Ken Edwards and Richard Schwary.
They have a physical office moments away from LAX. However, if you don’t want to travel to Los Angeles, you can visit website instead. It has everything you’d expect from a reputable gold dealer.
Gold Dealer offers free, insured shipping on every order. Their low prices are the result of reducing operating expenses over time.
Monarch Precious Metals
Monarch Precious Metals is a newer company established in 2008 to help with the immense public demand for gold bullion. They only use quality metals, so anything you buy from them will be .999+ fine.
They triple-check the weight of every bar they ship. If it is ever underweight, they re-melt it. If it’s ever overweight, it’s a win-win for you because they always let it pass and ship it as is.
Everything is custom hand-poured and marked in the old way, giving their metals a unique, old-fashioned look. They accept all methods of payment except PayPal, and every order is properly insured.
CMI: Gold & Silver
An A+ Accredited Business, CMI is located in Phoenix, Arizona. However, CMI will buy and sell precious metals online to investors all over the United States.
Its president, Bill Haynes, considers it his responsibility to educate the public about the dangers and benefits of buying gold and silver products.
He regularly updates his blog on global factors that influence the prices of metals. It’s a helpful resource for determining when to buy.
With solid prices, IRAs, and a plethora of educational material to read, CMI should be a website you routinely check if you are a serious investor.
BGASC: Buy Gold and Silver Coins
With thousands of positive customer reviews, it’s not hard to realize why BGASC is an A+ BBB accredited business. They offer free shipping on orders $99 and up. Every order is insured while in transit. Additionally, they always ship your order the next business day.
BGASC is one of the largest coin and bullion dealers in the US. They sell nearly every type of US coin ever made. They also have a large selection of mints from other countries, such as China, Mexico, and Canada.
The Basics of Precious Metals
Before buying gold or silver, it’s important to understand the different forms they come in. Each type has its pros and cons. Some people focus on one kind they prefer, while others create a diverse mix of different kinds. Before you buy precious metals, figure out which strategy is best for you.
Silver
Let’s start by talking about silver. Typically, you can buy silver either in the form of bullion or junk silver. Silver bullion refers to silver as a bar, coin, ingot, or round.
Silver Coins
The most popular silver coins you’ll come across are as follows:
American Silver Eagle
Canadian Silver Maple Leaf
British Silver Britannia
Mexican Silver Libertad
Austrian Silver Philharmonic
South African Silver Krugerrand
Australian Silver Kangaroo
Chinese Silver Panda
Junk Silver
Junk silver, on the other hand, is any type of old U.S. currency containing real silver. Any U.S. half-quarters, quarters, or dimes minted before 1965 are considered junk silver. However, in reality, they aren’t very junky at all.
You can sometimes find junk silver below the spot price. This can often allow you to start with a profit on your investment.
Silver Rounds
Silver rounds are privately minted silver pieces shaped like coins but produced by private mints. They are not government minted or legal tender, so they are not referred to as coins. The most popular silver round is the American Silver Buffalo. However, Scottsdale Mint also produces some beautiful rounds called “Omnia.”
Gold
Gold also comes in bars and coins, each one giving you a different type of entry point into precious metal investing. Buying gold coins is the easiest way for gold investors to start because you can begin by just purchasing a few at a low price point.
Gold Coins
The most popular gold coins to buy are as follows:
American Gold Eagle
Canadian Gold Maple Leaf
British Gold Britannia
British Gold Queen’s Beast
Mexican Gold Libertad
Austrian Gold Philharmonic
South African Gold Krugerrand
Australian Gold Kangaroo
Chinese Gold Panda
Gold Rounds
Similar to silver rounds, the most popular is the American Gold Buffalo.
Perhaps you’re stocking up as a hedge against inflation or to use as currency in a potential crisis. If so, you’ll find that coins of any type (gold or silver) will be easier to barter with than bars.
If you decide to buy bars, you can get them in different sizes to suit your space or budget. For example, you can purchase 1 to 10-ounce gold bars or up to 100-ounce silver bars. You can even find bars at just a fraction of an ounce if you want to start small.
One of the most significant advantages of this tactic is that you get the lowest premium when you buy larger bars. So while they might not be as easy to sell when you’re ready, you’ll get a better value if you can make that large of an investment upfront.
Copper
While silver and gold are the most popular, there are other precious metals to consider as well. For example, copper also comes in bars, rounds, and coins and is very affordable for novice investors.
Some experts believe it’s a wise investment opportunity because of its rising demand and shrinking supply.
Platinum and Palladium
Platinum is perhaps the most precious of all metals. It’s 15x rarer than gold, and its value exceeds that of gold. Platinum is usually sold as coins minted in the U.S., Canada, or Australia.
Palladium is similar to platinum in its properties and is actually 30x rarer than gold. Because these metals are so rare, not many people invest in them. However, a growing number of investors are adding them to their portfolios. It’s something you may want to consider as well.
Gold and Silver: Frequently Asked Questions
Where is the best place to buy gold?
The two best places to buy gold are online retailers and local coin shops.
Online retailers, such as the ones we’ve listed above, offer a wide selection of gold coins, bars, and rounds at competitive prices. These retailers often offer free shipping and insurance, making it easy and convenient to buy gold from the comfort of your own home.
Local coin shops are another great option if you want to prefer gold in person. These shops often have a knowledgeable staff who can help you find the right gold products for your needs and budget. You may also be able to negotiate on price of the gold.
Where is the best place to buy silver?
The best place to buy silver is typically also the best place to buy gold: online dealers and local shops. These options provide a wide range of products to choose from and allow you to compare prices and quality before making a purchase.
Online dealers offer the convenience of shopping from home, while local shops provide the advantage of in-person interaction with knowledgeable staff who can answer your questions and guide you towards the right products for your investment goals.
Whether you want to buy silver coins or silver bars, these options typically offer competitive prices, flexible shipping policies, and convenient payment options.
We recommend checking out at least a few of the best online gold dealers we mentioned above, regardless of what your needs are. Compare prices, selection, and shipping policies on numerous sites.
What is the cheapest way to buy gold and silver?
The most cost-effective method of acquiring gold and silver is by buying bars. They tend to have smaller markups compared to spot prices compared to coins, due to their lower production costs.
Buying in bulk is also a smart way to lower the cost per ounce as many online dealers offer discounts for larger purchases.
Is it safe to buy gold and silver online?
Buying precious metals online is as safe as any other transaction you make online. It’s also just as safe to buy online is as it is to buy from a physical retailer. The key is to buy gold and silver from a reputable gold dealer.
Is it better to buy gold coins or bars?
There is no right or wrong answer to this question. It depends on your situation, your needs, your budget, and what you prefer. As mentioned, it’s typically cheaper to buy gold bars. However, you will most likely get a better value from gold coins when it comes time to sell your gold.
Gold and silver coins and small bars offer more flexibility when it comes time to sell. Owning smaller units of gold and silver allows you to sell only a portion of your precious metals instead of your whole portfolio.
How much gold and silver should I own?
Experts recommend holding 5-25% of your net worth in precious metals. However, it depends on your goals, your situation, and risk tolerance. Precious metals can be a great addition to your portfolio as long as you know why you’re adding it.
Can I store gold at home?
Storing gold in your home offers a sense of security and privacy for your valuable assets. As a form of wealth preservation, it provides complete control without the need for outside storage. However, it’s crucial to be mindful of potential security threats and to ensure your assets are adequately insured.
To mitigate these risks, it’s advisable to implement a secure storage system. Ultimately, home storage is a viable solution for individuals who value personal ownership and control of their gold holdings.
Rebalancing is the process of buying and selling assets in a portfolio to bring your allocations back into line with your investment goals. If you’re new to rebalancing 401(k) savings, it helps to know how it works and how often you might want to do it.
Making 401(k) contributions can help you build retirement wealth while enjoying some tax advantages. Periodic 401(k) rebalancing can ensure that your asset allocation aligns with your risk tolerance and financial goals.
What Is Rebalancing Your 401(k)?
When you’re talking about a 401(k) rebalance, you’re talking about buying or selling investments in your workplace retirement plan to bring them back into alignment with the original percentages you started with.
Example
If you started with 50% in equities (stocks) and 50% in bonds, over time that portfolio balance will drift as the value of those securities rises or falls. You can then rebalance your portfolio to restore the original 50-50 ratio. (Or you can adjust your allocation according to a new ratio that reflects what you’re comfortable with today.)
Rebalancing isn’t the same as changing your 401(k) contributions. That usually refers to increasing — or decreasing — the amount of your salary you defer into your plan. If you’re wondering can you change your 401(k) contribution at any time, the answer is usually yes, though it might depend on your plan administrator’s rules.
When you rebalance 401(k) assets, you’re changing where you invest the money you contribute. How you determine your retirement goals and your risk tolerance can shape your ideal asset allocation.
When to Rebalance Your 401(k)
How often should I rebalance my 401(k)? It’s a common question, but there’s no uniform answer, as every investor’s needs and goals are different. As a general rule of thumb, you might revisit your 401(k) allocation at least once a year. But rebalancing 401(k) savings could make sense at any time when your allocation no longer matches up with your investment goals.
Life changes might affect your decision of how often to rebalance 401(k) assets. For example, you might need to take a second look at your assets if you get married, have a child, or get divorced. Any of those situations can influence the way you approach investing, including how much risk you’re comfortable taking and how much you might need your 401(k) to grow to hit your retirement target.
Age is also a consideration for deciding when to rebalance a portfolio. When you’re younger with years ahead of you to ride out periodic ups and downs in the market, you might not be too concerned with rebalancing your 401(k) assets. You can afford to take greater risks at this stage to earn greater rewards with your investments. As you get older, however, you might naturally begin to gravitate toward more conservative investments. If you find yourself growing less tolerant of risk, that’s a sign that it might be time for some 401(k) rebalancing.
Recommended: Average Retirement Savings by Age
Example of Rebalancing a 401(k)
Rebalancing 401(k) assets is a fairly straightforward process. First, you’d need to decide what you want your target asset allocation to look like. From there, you’d either buy or sell assets until your portfolio achieves the right balance.
Let’s say that you’re 35 years old and your target 401(k) portfolio allocation is 85% stocks and 15% bonds. Upon checking your latest statement, realize that your asset makeup is actually 75% stocks and 25% bonds. You could rebalance 401(k) investments by selling 10% of your bond holdings, then reinvesting the proceeds into stocks.
You can do that without any tax consequences as long as you’re not withdrawing money from your plan. Should you decide later that it makes more sense to move back to a 75%/25% split, you could sell off some of your stocks and purchase bonds instead. 💡 Quick Tip: Want to lower your taxable income? Start saving for retirement by opening an IRA online. The money you save each year is tax deductible (and you don’t owe any taxes until you withdraw the funds, usually in retirement).
Benefits of Rebalancing Your 401(k)
What is rebalancing meant to do for you? A few things, actually, and there are good reasons to consider regular 401(k) rebalancing.
Here are some of the main advantages of paying attention to your 401(k) allocation.
• Manage risk. Rebalancing your retirement savings can help ensure that you’re not taking more risk with your investments than you’re comfortable with. At the same time, it allows you to see if you’re taking enough risk in order to reach your goals.
In the example above, rebalancing the portfolio so it has a higher percentage invested in stocks will increase the portfolio’s risk/reward ratio. Stocks tend to be higher-risk investments, with a higher risk of loss and a higher potential for rewards.
• Maximize returns. If your 401(k) allocation becomes too conservative, you could miss out on opportunities to earn greater returns. Rebalancing can prevent that from happening so that you have a better chance of achieving the level of returns you’re looking for.
• Keep pace with changing goals. As mentioned, life changes and age can influence your asset allocation preferences. Should your goals or needs change, rebalancing can help you adjust your financial plan both for the short- and long-term.
Is there a downside to 401(k) rebalancing? There can be if the investments you’re buying underperform and don’t deliver the level of returns you’re expecting. Another unintended consequence centers on cost. If you’re swapping out lower-cost investments in your 401(k) for ones with higher fees, that could offset any benefits you might realize in the form of better returns. 💡 Quick Tip: Before opening any investment account, consider what level of risk you are comfortable with. If you’re not sure, start with more conservative investments, and then adjust your portfolio as you learn more.
Steps for Rebalancing Your 401(k)
Ready to rebalance your 401(k)? The process itself isn’t that difficult, though you may want to spend some time researching the different investment options offered through your plan.
Calculate Current Asset Allocations
The first step in 401(k) rebalancing is figuring out what kind of asset split you currently have. In other words, what percentage of your account is dedicated to stocks, bonds, or other assets.
You may be able to do that by logging in to your 401(k) plan and checking your asset allocation. Many plan administrators offer online investment portfolio tracking so you can see at a glance how much you have invested in stocks, bonds, or other securities.
If your plan doesn’t automatically calculate your allocation, you can figure it out yourself by identifying the amount of money assigned to each investment, dividing it by the total value of your account, then multiplying by 100.
For example, say that you have $120,000 in your 401(k) and $72,000 of that is in stocks. If you divide $72,000 by $120,000, then multiply by 100, you get 60%. That means 60% of your 401(k) portfolio is stocks. You can perform the same calculation for each type of investment in your plan.
Compare to Target Asset Allocations
Once you know how your 401(k) assets break down, you can compare those percentages to your target percentages. For example, if you’ve got 60% of your 401(k) in stocks and your goal is 80% stocks, then you know you’ve got a 20% gap to close.
How you set your target allocations is entirely up to you and, again, it can depend on things like:
• Your age
• Risk tolerance
• Investment goals
• Time frame for investing
You might try using a basic rule of thumb like the rule of 100 or rule of 120 to find a starting point for allocating assets. These rules suggest subtracting your age from 100 or 120, then using that number as a guide for allocating your portfolio to stocks.
For example, if you’re 35, then based on the rule of 120, stocks should account for 85% of your portfolio. You could also look at how much you have saved versus what you need to save. This kind of retirement gap analysis can tell you how close or how far away you are to your goals and where you might need to adjust your savings strategy.
Sell Overweight Assets
Now that you know what your target allocation should be, you can take the next step and sell off overweight assets. These are the ones that are causing your asset allocation to skew away from your ideal alignment.
If you need more stocks, for example, then you’d sell off bonds. And if you want a more conservative allocation, you’d sell some of your stocks so you can use the money to buy more bonds.
Buy Underweight Assets
The last step is to buy underweight assets in order to bring your 401(k) portfolio back in line with where you want it to be. There are a couple of ways you can do this.
First, you could make a large, one-time purchase using the proceeds from the overweight assets that you sold. That might be easiest if you don’t want to make any changes to future allocations of your 401(k) contributions.
The other option is to change your allocations to direct future 401(k) contributions to underweight assets. What you have to keep in mind here is that once you reach your target allocation, you may need to change your future allocation preferences again so that you don’t accidentally end up overweight in one asset class.
One more possibility when considering how to manage 401(k) asset allocation is to check with your plan administrator to see if automatic rebalancing is an option. An automatic rebalance 401(k) feature could make keeping your allocation easier so you don’t have to spend as much time worrying about your assets.
Consider a Target Date Fund
If you want to skip rebalancing altogether, you might consider investing in a target date fund in your 401(k). Target date funds have an asset allocation that shifts automatically over time as you get closer to retirement.
You choose a target date fund based on your expected retirement date and the fund does the rest. Target date funds offer convenience since you don’t have to actively rebalance, but they might not be right for everyone. If the fund’s allocation doesn’t adjust in a way that’s consistent with your goals, you might be overexposed or underexposed to risk.
The Takeaway
When can I retire? It’s a big question, and if you’re contributing to a 401(k), it helps to know how to make the most of it. Rebalancing your 401(k) can help you stick to an asset allocation that makes the most sense for you. You also have the option of changing your allocation if your risk tolerance changes or your goals shift.
Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Easily manage your retirement savings with a SoFi IRA.
FAQ
Is it good to rebalance your 401(k)?
It’s a good idea to rebalance your 401(k) if you’re concerned about taking too much risk — or not enough — with your investments. Rebalancing 401(k) assets is usually recommended when you experience life changes that affect your retirement goals and as you get older.
Should I rebalance my 401(k) before a recession?
Whether it makes sense to rebalance a 401(k) before a recession can depend on your current asset allocation and what you perceive the biggest threat to be should a recession occur. If you’re heavily invested in securities that are typically recession-proof or tend to fare well in economic downturns, then rebalancing might not be necessary. On the other hand, you might need to make some shifts in your 401(k) assets if you think a recession could expose you to more risk than you’re comfortable with.
Does it cost money to rebalance 401(k)?
It shouldn’t cost you any money to rebalance a 401(k), since you’re buying and selling assets in the same plan. You may want to ask your plan administrator whether any transaction fees will apply before you move ahead with 401(k) rebalancing. Keep in mind that taking money out of your plan to buy investments could cost you, since early withdrawals are subject to tax penalties.
Should I rebalance my 401(k) in a bear market?
Whether you should rebalance your 401(k) in a bear market can depend on the type of assets you’re holding and where you think stocks might be headed next. Bear markets can be opportunities for investors who are comfortable taking more risk, as you might be able to find investments at bargain prices when the market is down. Once the market recovers, those discounted investments might pay you back in the form of substantial gains as prices rise again.
Photo credit: iStock/miniseries
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Self-doubt and embarrassment can creep in at a moment’s notice without warning. Insecurities, whether stemming from childhood or developing as a young adult, do not discriminate. Here are some of the most common complaints. Which would you rank number one?
1. Hair Loss
For women and men alike, early onset shedding can drain self-confidence. “I started losing my hair when I was 18. Now I keep my hair really short so it isn’t so noticeable,” one Redditor posted. “Also, lots of hats!” Now that’s looking on the bright side.
“Just remember: bald is sexy, balding is not,” an encouraging response read. “Sounds like you made the right choice! No shade on anyone who wants to rock a comb over, you do you boo.”
2. Nose Goes
From young children and teens to grown adults and baby boomers, most have wrestled with admiring their side profile.
“I hate my nose” was among the top comments regarding physical features.
3. The Number on the Scale
While being overweight can trigger a person, being underweight is equally stressful.
“My weight; I’m super skinny and find it impossible to put on any weight.”
4. Being at a Loss for Words
“Not coming up with anything to say … It’s so embarrassing because it can happen in the beginning of a conversation out of nerves. Makes me feel very uncomfortable, and that person loses interest.”
Anyone in public speaking is sure to relate.
5. Surface Level
“I have eczema (a genetic skin condition that often looks like a flaky sunburn, no matter how much lotion I put on), and I know it makes me physically less attractive. When I get turned down for dates, I can’t help but wonder, was it because of my bad skin?”
6. Wordy Worry Wort
As it turns out, keeping someone from getting a word in edgewise is a major faux pas.
“I’m so scared of being annoying or too out there.”
7. Heated Handshake
Whether the result of too much coffee, the shivers, or a touch of nervous energy, temperature changes happen to everyone.
“When people point out the shakes in my hands or my overheating… I have an autoimmune disorder that causes temperature regulation issues.”
8. Not So Pearly Whites
“I don’t have perfectly white teeth,” said one comment.
“My dang teeth. Years of bulimia messed them up royally, and now, instead of weight issues, I have far more expensive dental problems,” another posted in reply.
Coffee, red wine, and smoking are said to have contributed to stains and discoloration.
9. Hairy Human
“I have a tiny bit of a beer belly, but it also has a dark peach fuzz, which is not acceptable in women,” said one Redditor.
10. Lips with a Lisp
Speech impediments are often significant sources of insecurities plaguing teens. However, lisp is among the most common (and treatable) issues.
Source: Reddit.
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
20 Cities So Bad People Will Never Visit Again
Have you had a bad experience visiting a city and sworn never to return? Not every trip is a great experience.
20 Cities So Bad People Will Never Visit Again
10 of the Greatest American Bands of All Time
When it comes to music, the mantra “beauty lies in the eye of the beholder” holds truer than ever. Nevertheless, we’ve worked hard to pinpoint the best American bands ever.
10 of the Greatest American Bands of All Time
10 Crazy Good Movies Where Women Are the Bad Guys
Are you looking for a movie night with a twist? Look no further than these Reddit-voted top ten films where women take on the destructive bad guy role.
10 Crazy Good Movies Where Women Are the Bad Guys
25 Extraordinary Sequels and Remakes That Outshine the Originals
Every once in a while, a movie sequel or remake surpasses the original film. After polling the internet, “Name a single movie where the sequel or remake was better than the original?” Here are the top-voted responses.
25 Extraordinary Sequels and Remakes That Outshine the Originals
Self-doubt and embarrassment can creep in at a moment’s notice without warning. Insecurities, whether stemming from childhood or developing as a young adult, do not discriminate. Here are some of the most common complaints. Which would you rank number one?
1. Hair Loss
For women and men alike, early onset shedding can drain self-confidence. “I started losing my hair when I was 18. Now I keep my hair really short so it isn’t so noticeable,” one Redditor posted. “Also, lots of hats!” Now that’s looking on the bright side.
“Just remember: bald is sexy, balding is not,” an encouraging response read. “Sounds like you made the right choice! No shade on anyone who wants to rock a comb over, you do you boo.”
2. Nose Goes
From young children and teens to grown adults and baby boomers, most have wrestled with admiring their side profile.
“I hate my nose” was among the top comments regarding physical features.
3. The Number on the Scale
While being overweight can trigger a person, being underweight is equally stressful.
“My weight; I’m super skinny and find it impossible to put on any weight.”
4. Being at a Loss for Words
“Not coming up with anything to say … It’s so embarrassing because it can happen in the beginning of a conversation out of nerves. Makes me feel very uncomfortable, and that person loses interest.”
Anyone in public speaking is sure to relate.
5. Surface Level
“I have eczema (a genetic skin condition that often looks like a flaky sunburn, no matter how much lotion I put on), and I know it makes me physically less attractive. When I get turned down for dates, I can’t help but wonder, was it because of my bad skin?”
6. Wordy Worry Wort
As it turns out, keeping someone from getting a word in edgewise is a major faux pas.
“I’m so scared of being annoying or too out there.”
7. Heated Handshake
Whether the result of too much coffee, the shivers, or a touch of nervous energy, temperature changes happen to everyone.
“When people point out the shakes in my hands or my overheating… I have an autoimmune disorder that causes temperature regulation issues.”
8. Not So Pearly Whites
“I don’t have perfectly white teeth,” said one comment.
“My dang teeth. Years of bulimia messed them up royally, and now, instead of weight issues, I have far more expensive dental problems,” another posted in reply.
Coffee, red wine, and smoking are said to have contributed to stains and discoloration.
9. Hairy Human
“I have a tiny bit of a beer belly, but it also has a dark peach fuzz, which is not acceptable in women,” said one Redditor.
10. Lips with a Lisp
Speech impediments are often significant sources of insecurities plaguing teens. However, lisp is among the most common (and treatable) issues.
Source: Reddit.
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
20 Cities So Bad People Will Never Visit Again
Have you had a bad experience visiting a city and sworn never to return? Not every trip is a great experience.
20 Cities So Bad People Will Never Visit Again
10 of the Greatest American Bands of All Time
When it comes to music, the mantra “beauty lies in the eye of the beholder” holds truer than ever. Nevertheless, we’ve worked hard to pinpoint the best American bands ever.
10 of the Greatest American Bands of All Time
10 Crazy Good Movies Where Women Are the Bad Guys
Are you looking for a movie night with a twist? Look no further than these Reddit-voted top ten films where women take on the destructive bad guy role.
10 Crazy Good Movies Where Women Are the Bad Guys
25 Extraordinary Sequels and Remakes That Outshine the Originals
Every once in a while, a movie sequel or remake surpasses the original film. After polling the internet, “Name a single movie where the sequel or remake was better than the original?” Here are the top-voted responses.
25 Extraordinary Sequels and Remakes That Outshine the Originals
Office real estate investments trusts are trading at their lowest level since 2009 as the trend toward remote work leaves desks empty and economic pressures tighten corporate budgets.
The S&P Composite 1500 Office REITs index is down 27% in 2023, plunging to its worst reading since July 22, 2009. Office landlords comprise just 6% of the REIT sector, which explains why the broader S&P Composite Equity REITs index is down just 5.2% year-to-date and the S&P 500 Real Estate sector has dropped 4.5%. Offices are what’s weighing on the group.
“There’s two ways to lose money: You can own a boat, or you can own an office building,” Piper Sandler analyst Alexander Goldfarb said. “At least with the boat you can take your friends out on a sunset cruise.”
While the stress on the office sector may not be new, the shift to working from home has exacerbated the problem. However, much of the damage could already be priced into the stocks after this latest selloff, analysts said.
In addition, fears about commercial real estate have added to the woes of regional bank stocks that typically fund local projects like strip malls and small office buildings. The sector has been pressured since the collapse of Silicon Valley Bank in March sparked industrywide turmoil. Now some investors fear that its exposure to office weakness could be the next shoe to drop.
However, those worries may be overblown.
“There’s probably going to be some heartburn in the bank space and probably some charge-offs,” said Ben Gerlinger, an analyst at Hovde Group. “But I think a lot of smaller and community regional banks are well-positioned.”
Quality Counts
What’s more, the outlook for office landlords could improve as companies encourage workers to return to their desks and restrict remote work policies.
“We’re starting to see some of that reversal,” RBC Capital Markets analyst Michael Carroll said. “You’re seeing the first steps of people starting to reutilize their office spaces when they weren’t just a few years ago.”
The age and quality of each building will be a key differentiator in which offices succeed over the long term and which don’t. Newer office buildings with modern amenities will likely benefit the most as companies seek out spaces that will entice workers back into the office.
And of course, the financial makeup of each office landlord is key. Industrial and senior housing landlords could prove to be potential bright spots due to their healthy fundamentals and strong cash flow generation, according to Carroll.
Similarly, Piper Sandler’s Goldfarb recently upgraded Douglas Emmett Inc. to overweight because of its small tenant focus and lower cost of leasing. On the opposite end of the spectrum, he slapped an underweight rating on New York-based Vornado Realty Trust due to its struggling balance sheet and development exposure around Manhattan’s Penn Station expansion project.
So identifying winners and losers among office REITs remains a stock-picker’s game. But in the end, the damage may not turn out to be as bad as investors’ angst.
“There are a lot headwinds out there,” Goldfarb said. “But when you really look into it, the fear is much bigger than reality.”
Ah yes, the dreaded first date. Extraordinarily awkward and wildly embarrassing, it rarely ends well. Thankfully, the internet guarantees our collection of stories continues to live on. The votes have been tallied. Did these make the cut? 1. Beach Barf Spoiler alert! “Biggest crush throughout the school. I finally got my moment at a beach … Read more
With Stash, you can invest in companies that match your personal values for just 1 cent. Here’s our in-depth review of the Stash app.With Stash, you can invest in companies that match your personal values for just 1 cent. Here’s our in-depth review of the Stash app.
The post Stash Review: My Experience Investing With Stash Investment App appeared first on Money Under 30.
When you’re spending your hard-earned money to buy a gift for someone, it’s always a plus to know it’s something that will be put to good use. These travel gifts for women are a great way to show your favorite traveler how much they mean to you while elevating their travel experience. Best Gifts for … Read more