Should I be trading them to a less riskier funds or just leave them alone and hope for a speedy recovery?
2007-12-17 07:55:03 · 8 answers · asked by jmkca 1 in Business & Finance ➔ Investing
If you liquidate then you're locking in the losses. At that point your only salvation would be to move it back in when the market is headed back up....when will that be? Who knows....but you'll likely miss it which means you will have damaged your account.
You chose the risk level that you are at for a reason....over time your assets should perform at the anticipated level but only if you continue to invest. Putting it in and pulling it out messes with that ROI and often negatively. If you are now finding that the risk level is too high then pull your money but don't put it into cash....put it into the investments at the next lower risk profile. Then forget about them...rebalance once a year and leave it alone!!
2007-12-18 02:21:43 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
when you can't sleep at night for the worrying, you need a different strategy.
***
you could --
1. sell out, hold cash, and vote Democratic in the hopes that Hillary will buy your vote by tripling the Social Security payouts or mandating that all employers offer 80% pensions upon retirement.
2. take medication for the stress
3. learn enough about the markets to manage your 401(k) yourself and move the funds to an IRA [after you get any match from your employer, of course].
4. become so highly paid that whatever happens to your 401(k) plan is small potatoes in the overall scheme of things.
GL
2007-12-17 16:07:32 · answer #2 · answered by Spock (rhp) 7 · 0⤊ 0⤋
Leave them alone.
Hope for a long, agonizingly slow recovery until just before you retire.
People -- buy LOW sell HIGH...I know I am yelling, but come on! Why is such a simple idea so hard for people to implement?
Risk is a relative concept -- what do you mean by less risky?
2007-12-17 15:59:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A 401(k) is for long-term investing, not chasing the market. Take a look at your 401(k) asset allocation. If it meets your satisfaction for your time horizon and consists of good low-cost no-load funds, you'll be fine. If it doesn't, do some rebalancing.
2007-12-17 17:29:45 · answer #4 · answered by npk 7 · 0⤊ 0⤋
hold for the long term. actually it is a good time to buy stocks. just look for stocks that are worth more then are going for.
2007-12-17 17:12:24 · answer #5 · answered by bizzbagg 4 · 0⤊ 0⤋
Increase your contributions so you can take better advantage of all those cheap shares out there.
2007-12-17 16:07:16 · answer #6 · answered by Smart Alec 2 · 0⤊ 0⤋
you should work for a few more years, retirement's been cancelled!
2007-12-17 15:57:18 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Ride it out...it will come back, always does!
2007-12-17 15:57:04 · answer #8 · answered by neveragain 5 · 0⤊ 0⤋