I've got a question for all you readers out there, I could really use your advice...
I've just received my rollover forms from Principal Investors, the company that handled 401k for my previous employer. What I've done in the past with all my errand, abandoned 401k accounts was rollover and consolidate them all into one Vanguard IRA. The amounts were pretty small and having them all under one roof with a lot more funds to choose from were huge benefits.
At Vanguard everything is invested in the TargetRetirementFund2045 (VTIVX). That fund is 90% stocks and 10% bonds and has fallen -33.00 this year, and -4.10 the past three years. My rational mind tells me to buy low and sell high, and that it has time to rebound since I won't need that money for a long time, but I'm still scared. Should I be buying bonds, treasuries or commodities instead of this fund? Should I leave it at Principal in case one of these guys folds, even though their choices are meager and the performance just as bad?
I'd like to know what you would do if faced with the same situation... (as long as it doesn't involve cashing it out and stashing it in my mattress)