A listener who became executor of his father's $500,000 brokerage account, mostly in S&P 500 index funds, faces a choice during months of probate. Move it to cash for safety, or keep it invested for growth. The hosts debated whether this counts as market timing. Joe initially advised moving to cash. The other host argued the money belongs to heirs with decades-long time horizons and should stay invested. They settled on a hybrid approach: keep half in the original investments and move half to a money market fund, ideally with beneficiary buy-in. Either way, set aside cash for taxes, legal fees and debts.
The hosts stressed that none of these choices count as market timing. An executor acts as a fiduciary for every beneficiary, and many states' prudent investor rules may protect you if holdings are broad index funds.
A second listener watched her long-term government bond fund lose 38% of its value over six years. She wondered whether individual bonds might work better now that yields are high. The hosts explained that individual bond prices also fall when rates rise, just like a bond fund's net asset value. The difference is that holding individual bonds to maturity locks in the coupon regardless of price swings. They advised checking yield to maturity, not just the coupon rate, to understand what an individual bond actually returns.
A third caller, Cheryl, who runs a $370 million retirement plan for 1,100 employees, pushed back on criticism of target-date funds. She noted that most workers ignore their 401(k) investments altogether. A low-fee Vanguard target-date fund as the default beats leaving employees in outdated, overly conservative options. The hosts agreed that for people who won't engage with investing, target-date funds serve as a practical floor. Anyone willing to learn can build a simple three-fund portfolio instead.