Listen: Warren Buffett, Dwayne And Indiana discussed on InvesTalk
"Eight ninety nine chart. Good morning. My name is Dwayne. I'm calling from Cher build Indiana. Thank you for all the advice. You've given us far one question. I have for you. What happened? We see you talk. A lot about recession starting to occur late next year. Possibly what happened and we start to see this trend as far as my 4._0._1._K. Is there anything that I can do with my war on K to make it secure their option that I have to where I can go to another account with account of what did you suggest that we do we store than we? We're not to this recession by naturally if it were to happen. Thank you. Okay. Thanks. Thanks. Appreciate the question. Obviously, you can move your every I there's an might be a misunderstanding. When you invest in a 4._0._1._K, you get the pick the options that you're vetted. You get to pick the mutual funds. Then you can opt out of them you could sell those mutual funds and just go to cash if you want to you don't have to stay invested in the market at all. Or any you don't have to stay invested in anything on stocks, nothing in your 4._0._1._K. You can go to money market. Just sell the fell everything you have go the money market. Now. I'm going to warn you. It's usually not a good idea to do that. This is why. Yes, I think we're going into recession late next year or the year after and I think just off Michael will probably fall before that happens. But I can't tell you win. And then I can't tell you win the buy back into it. No one can time the market that way. So when I hear me talking to people that say move into values stocks versus go, stocks, you notice I'm still telling you to stay with the market, but be more defensive in nature. Can you do that in your four one K? Well, it depends on the options. They give you and most times they don't give you enough to do that. So let's say you sell out today. Go to money market nine another explosive Mark to stocks at all. When you get back in. You know when you get back. What most people do they sell at the bottom by at the top. So with if you sold out today. Then you'll wait and you'll wait the way they just see the market recession. Happened market come down the Marcos start to recover your wait a little bit longer than a recovered a little bit more no way a little bit longer than a little bit. More LA Daniels. Start to invest a little bit of money. And by the time, you get all back in most of the move is already been made extremely common. So that's why it's never good idea to get completely out. That's why at the top of the show. Are we talked about dollar cost? Averaging if you're in a 4._0._1._K, and you've got lots of years left. The probably the best thing you could do watching is meaning over ten years just keep investing in the market. Don't worry about this next recession of the you don't have the skill. I'm not trying to insult anybody out there. But you don't have the skill of experience on how to try to avoid the next collapse. And I don't even know how to there's no way I know how to tie the market. I'll try to time it I just tried to use my knowledge and abandoned taking advantage of the different sectors of the market, and what works best at what economic cycle that. We're in. And I'm not always right? I'll quite often early. But I don't mind being early. But you don't have the luxury like I do studying this stuff and breathing living at and understanding the economy where it's going and interest rates, and what are we experiencing different warning signs. You don't have that experience. It's difficult for the average person very difficult. Remember, I'm trying to get through to be above average Bester. But it never gonna be super because the other that comes along as you're talking about Warren Buffett. I can't I can't do it Warren Buffett here. No, again, it's it's very difficult and those he doesn't sell now he's got an advantage. He doesn't sell and based on what the market economy doesn't. Well, he does he only buys, but he waits. Remember, he asked us insurance company that dumps more and more money. He has the most money ever had ever sitting in cash. Why is he gathering money? This is waiting for the next recession. That's how he does. And then he invest at the depths in the depths of the recession. He looks for stress situations for good solid management. Good solid companies but under stress goes up by them. And then he just holds them forever. He doesn't try to time the market out his style. You know? To quote him. How long does he hold stocks his mind? He buy stocks to hold forever. Never sell them. Now. Don't get me wrong. He does sell. But that's not his approaches. It. The approaches I want to hold the hold on company, and it's my company and keeping it."