pension account question
Hello!
A question on pension funds:
I have both a 401k and a pension fund through my employer, both of which I can allocate percentages into particular funds. Initially, I was advised to allocate in my pension identically to the allocations of my 401k, since the same funds/same fees were in both accounts. I did that, but today learned I hadn't changed the settings for future allocations and everything has been going into a Target Date fund.
My first thought was to fix this automated transfer into the Target Date fund, and again mirror the pensions allocations after my 401k allocations, but here's my question: if I'm not fully vested in the pension yet, and would only leave with a certain percentage of the total amount in the account, is it better to invest a non-vested pension fund more conservatively? Because for instance, if I was to get fired during a down market, that portion of the account I'm vested into would be smaller. I can see that conversely if I were to get fired and the market was doing very well, that's good, but I'm just wondering if one should think differently about a pension account vs a 401k account. Thanks for the guidance!
Posted Jun 4, 2019, 3:07 PM UTC