401k Advice

[mikeyes]

Against a friends advice 3 months ago, I left my money in the highest gain/highest risk fund. I'm only 28 and many years from retirement. Since then I have lost about 10% of my total value with the declining markets.

So what should I do now. Do I leave it alone and ride out the next few years? Do I say screw it, I lost a bunch and transfer it into the secure fund?

Anyone else stuck with the same problem?

 

[Brainonska511]

Leave it alone. You're not retiring for years and in the long run it will make money.

 

[Capt Caveman]

Leave it. You're not going to need it for another 37 years. Let it grow.

 

[kranky]

Where are your new contributions going?

 

[mikeyes]

Everything is going into the high risk/high reward fund.

I had thought about moving the existing funds into the secure fund until the markets improved and leaving my contributions into the high risk fund to buy in at the low prices.

The problem is if I don't gauge it right then I could lose some gains if I don't transfer back into the high funds at the right time.

My inclination is to leave it alone but it just seems wrong to watch the balance drop and not do anything.

 

[edro]

There have been numerous threads just like this over the last 3 months.
I have posted one myself.

Everyone says to leave it alone.
You might have been able to do it, if you transferred out about 6 months ago... but the damage is done.
Now you are buying more shares per dollar.

When the market picks back up, you will make more money.