Ask The Experts: Money Matters

By Mike Miles

Transfer to G Fund because of sequestration?

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Q. I am 37 years old, invested 100 percent in L2030. I have 25 years left to work, and I’m happy with 5 percent growth. I’m afraid of sequestration effects, so I’m planning to move 100 percent into G fund this week. I will move it back into L2030 after sequestration, when it posts three months of positive share price gain. Good plan or bad?

A. Bad.

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Comments

  1. Perry Says:
    February 25th, 2013 at 2:04 pm

    I did this very thing right before the debt ceiling debacle and it worked great. Remember in the aftermath when, despite getting downgraded, demand for US treasury bonds soared (even after the stock market tanked)? Lesson for me was that the US Govt is still the safest harbor in troubled seas. I just did it again and plan to put my $100K back into the L2040 immediately after stocks tank again.

  2. John Says:
    February 26th, 2013 at 3:59 pm

    Mike is right, leave it there as you are invested smartly all the way around. Besides it will be less that politico’s can take from the G Fund as they have in the past