If I have $251,000 in Chase brokerage, should I transfer the funds to my savings account?(please read details)

If I have $251,000 in Chase brokerage, should I transfer the funds to my savings account because of the upcoming recession? It doesn't look like investing your money in the stock market is a good idea right now.|||How did someone as naive as you ever get $250,000?





No you should not divest from the market becuase you are afraid of a recession. You should ideally already be well diversified so as to minimize risk.





But let me clue you in. The market already saw the possible recession coming, and the correction has already happened. That's why the market has fallen 15% from Dow 14,000 to 12,000 in the past 3 months. We are probably at the bottom right now, which is when "weak hands" usually sell.





But if you really can't sleep at night, you should know that any brokerage account lets you put money into a money market fund. That is what you do to park your money and avoid losses. A money market account is not going to lose money. You don't need to take it out of the brokerage.|||First things first... Banks are protected with FDIC, brokerage companies are protected with SIPC. FDIC protects up to $100,000 and SIPC up to $500,000 but only $100,000 of that can be cash and $400,000 in securities.





You say you have $251,000 sitting in a brokerage account I will assume that is cash..? You should consider fixed income investments possibly money market accounts or consider low risk bonds. If you are currently investing it's a little late to be changing your asset allocation since you have already taken drastic losses most likely, what are you investing for? What is your time horizon? If you have an extended time horizon you should ride out the losses and wait to regain what you have already lost. It's tends to not be a good idea to buy high and sell low.





You should be very careful with your choices and it sounds like you should probably consult an advisor before you make any drastic changes. You could cost yourself thousands by making an emotional decision at the wrong time. There are fee-only financial advisors that can paint a clear picture for you and they will not try to solicit business and sell you something at the end.





Best of luck!|||Is the money in the brokerage already in stocks? Or is it in a money-market account?





In order to beat a "buy and hold" strategy, you need to time the market correctly TWICE. You need to pick the right time to exit, and the right time to reenter. That's why the most active traders make the least money.





If you have the money in stocks right now, I'd say you've already missed the time to exit.|||You must stay the course with quality stocks or you will make your current loss permanent.|||The only way to avoid risk is to not play the game.|||Funds in brokerage accounts are not (usually) FDIC insured. With that amount of money I would transfer at least some of it to insured accounts. Look for the best rates at: http://www.bankaholic.com/money-market/


http://www.money-rates.com/mmarket.htm