I am of an opinion that I should decide where my money should get invested and if it should get invested at all or not.
When I looked at the investment options I have with my 401k money, I figured out that there are many Mutual Funds that I can choose from. But I couldn't find a "Pure Cash - No investment option" - what I mean by this is an option where my money is kept idle without investing in any kind of financial instrument (stocks, bonds, other MFs, currencies, forex etc etc whatever).
I wanted such kinda option because things may turn bad and I may want nothing invested in the stock markets/bond markets. I was thinking that if the market turns bearish then I would move everything to cash, but the cash option that is provided is not pure cash, it's again a fund basically which they call it as SF guaranteed. I dived in and investigated where this fund invests. Its portfolio consists of public bonds and mortgage loans and many other things. It means my money isn't getting invested as I want. There is no zero risk option! They have clearly mentioned that it has investment risk and it's not backed by any Federal fund. It's backed by the assets of the company that manages my 401k investments, duh! It's a private company. And who cares about that. I don't want any backing, I just want to keep my money in pure cash. Shouldn't I have an option to put my money into pure cash?
And if they aren't providing my an option why aren't they? What's their motive behind this?
What to do in such a scenario? My only point is I should decide where my hard earned money is invested. By giving all the options which in the end are investing in stocks/bonds/mortgage securities etc they are essentially telling me that all my 401k investment is subject to market risks! That's bad. There is no safe parking zone for turbulent times!
Any thoughts/advice would be greatly appreciated.