I feel like pulling all of my money out of my 401k

[BlahBlahYouToo]

... pulling out of the target date fund and putting it into a money market (that's still managed by the 401k administrator).

It's down 5% last 3 months, just about even YTD, and i don't have a good feeling about what's to come for the stock market in the upcoming months/years.

wise or unwise?

 

[edro]

Everyone is feeling just like you.

Just follow everyone else and leave it where it's at.

 

[rcpratt]

If I were farther into my career I would be seriously considering moving most of it to bonds (or would have several months ago), but at this point (I'm 22) I really don't think it matters all that much. I just think of it as buying low.

 

[Sluggo]

Get word that one of those nasty fatties was managing it?

 

[edro]

I just think of it as buying low.

But what if you are really buying high?
BONDS NOW!

 

[BlahBlahYouToo]

If I were farther into my career I would be seriously considering moving most of it to bonds (or would have several months ago), but at this point (I'm 22) I really don't think it matters all that much. I just think of it as buying low.

i'm young too, 26, but have a decent amount in my account.

it just sucks when i check the account on my payday and see that i have less in there than 2 weeks ago and that's AFTER my contribution + company match.

 

[bignateyk]

Just pull out and put all your money in gold. You can't go wrong.

 

[PricklyPete]

i'm young too, 26, but have a decent amount in my account.

it just sucks when i check the account on my payday and see that i have less in there than 2 weeks ago and that's AFTER my contribution + company match.

Just think of it as you just bought more shares for less than you did the month before. You're 26 and there is plenty of time for your investments to bounce back. Will we have a 10 year recession...very possibly...but in the end you're likely to be out ahead.

 

[rivan]

Just pull out and put all your money in gold. You can't go wrong.

 

[ViviTheMage]

just think of it as you just bought more shares for less than you did the month before. You're 26 and there is plenty of time for your investments to bounce back. Will we have a 10 year recession...very possibly...but in the end you're likely to be out ahead.

risky!!

 

[darkxshade]

Definitely pull your money out... that way the market can finally get out of its slump and I can finally start earning again.

 

[rcpratt]

But what if you are really buying high?
BONDS NOW!

In the long run it's still going to be low, the difference will be practically negligible.

Of course, if you're older it's a completely different story. I'm also lucky in that my company is in a business with relatively stable stock prices and large regular dividends.

 

[krunchykrome]

"they" advise against this. In fact, they say you shouldn't micromanage your 401k. People let their emotions/fear take over and toy with the idea of moving things around. I was in the same position a few years ago, but I decided to leave everything as is.

 

[nick1985]

http://www.youtube.com/watch?v=oZ_ylZURpZc&feature=related

 

[ichy]

Lol, market timers...

I remember at the end of 2008/early 2009 I had a coworker who lost a lot of money in his 401(k). He said he'd had enough, and had taken what was left and put it all in a money market account. This was when the Dow was around 7,000. Result was he missed out on the huge run up in the market that took place over the next year. If you're going to invest in the market you need to be prepared to dollar cost average in, think long-term and DO NOT TOUCH IT! Responding to emotion = fail.

 

[KingGheedora]

If you take the money out, you'll have bought high and sold low. Right now you're buying shares for cheaper $/share than a few months ago, and when you retire the market should be way higher than it is now so you'll come out ahead.

If you pull out now you'll just be cementing your losses.

I just started contributions for this year and even though the market is down I'm concentrating all my 2010 contributions in the remaining paychecks for the year. I believe it will benefit me in the long run because I'm buying the shares at a cheaper price than if I had contributed evenly throughout the year.

 

[BurnItDwn]

Ehhh ... sure things may dive down a bit, but they'll likely recover and then some. The time to pull your money out was back when the dow was breaking records and at 11K, now that we are recovering from a horrible recession, it's a horrible time to take things out.

 

[KingGheedora]

And it is a little un-nerving to see it down by several thousand dollars in the span of a couple weeks. But whatever. Logic over emotion.

 

[JEDI]

... pulling out of the target date fund and putting it into a money market (that's still managed by the 401k administrator).

It's down 5% last 3 months, just about even YTD, and i don't have a good feeling about what's to come for the stock market in the upcoming months/years.

wise or unwise?

do it. the market's not going to do anything from now till nov.

thats when the holiday season starts. if early reports are optimistic, put $ back into the market on Nov 1. if not, stay in money market fund.

time that market!
you can do it!

 

[Deeko]

Don't do it. You'd basically be buying high and selling low. You're materializing your losses by selling now. Just stick with it - you're young, the market has a very long time to improve.

 

[spidey07]

Yes! This is a great idea!

Buy high and sell low! Why didn't I think of this?

 

[ichy]

I'll never understand people who don't get that the stock market comes with risk. If you pull your money out because of a drop you should have stuck with bonds.

 

[Mermaidman]

... pulling out of the target date fund and putting it into a money market (that's still managed by the 401k administrator). . .

I recall reading that 'target date funds' aren't the best funds. Perhaps your 401K plan lets you choose other funds? Would be better than money market earning 0.0002%

 

[mizzou]

A small part of my portfolio is stocks, the rest are bonds and money market funds.
i pulled out of the market in 2005 just feeling nervous about it, i am happy with slow and steady growth.
( not that municipal bonds should seem less risky anyway which is funny to say now)

 

[acheron]

just stop saving anything in the 401k and spend it all on hookers & blow instead.