Reply to Stocking picking fail, how can we turn our retirement portfolio around?

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[quote=Anonymous]First, you should change your credentials for your 401k account and do not provide them to your husband. That's your account and he doesn't get to do speculative stock purchasing with it. Move those funds into a broad total stock market index fund or a balanced fund if you prefer to add some bond allocation and forget about it for the next 20 years.

As for the $200k you will need in the next two years, unfortunately, that time horizon is rather short for stock investing. Typically, the recommendation is to invest in stocks with at least a three-year horizon and maybe more like five. If you need that money in 1-2 years, look for a good high-yield savings account or CD. You should be able to get close to 2% if not a bit more depending on the bank. Look around. You can choose to put it into a stock fund like the S&P, but there are no guarantees it will be all there.

You and your husband need to sit down together and agree to an investment strategy with your money. Is he willing to read the Bogleheads Guide to Investing? It's a pretty comprehensive take on why low-cost index fund investing is superior and also easy. One idea is to allow your husband some set percentage, 5% is recommended, with which to play and speculate. Maybe he'll do great, maybe not, but at least you guys can't destroy your long-term future.

The Bogleheads.org forum has a set of like-minded folks to help if you and your DH want to check it out. The caliber of folks is a cut above DCUM with respect to investing.[/quote]

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