With the current stock market status, what is the best option for investing with my 401k?

Answer 1

Its not the status of the market that matters, its your status. The length of time that you have until you retire is most important for a 401k, and what other income you're going to have when you retire, such as IRA's and savings and other investments, Social Security you will recieve etc.. That will determine how much risk you can take. As a rule of thumb you should have the same percentage as your age in fixed income investments, like bonds, money markets and CD/s

Answer 2

You should evaluate your 401k once a year based on the amount of time left till you retire.

If you have balanced investments with risk based on your age, then what the stock market does on any 1 day or 1 week or 1 month shouldn't matter.

The long term picture is what you should be looking at say 10 years or more.

Since it is a 401k it takes advantage of dollar cost averaging. Buying stocks all the time, when the market is up, when it's down, etc. Banking on the long term that the market averages 9 to 12% return.

Answer 3

Depends on your age and time horizon. But do not panic. This is only a 3% drop(we usually have many per year and this is the first one in quite awhile.) Stay the course. If you are young go with 80% stocks, 20% bonds. Also 15% should be international. IMHO

Answer 4

You've already taken the hit...to transfer out now would be to lock in the lows... You'll have fallen into the buy high - sell low trap. Better to leave it where it's at and take advantage of the opportunity to buy at a low. However, now you can see the importance of diversification...80-15-5 equity/bond/mm split is not a bad thing!

Answer 5

split it up with stocks ,bonds international and give it time