I am so worried. should i w/draw my 401k and bonds, or think lonnnnnnng term?

Question

with this situation...

Answer 1

Stay, as long as the money inside is diversified. If your getting close to age 55 then you may want to choose safer investments but still keep them in the 401K to avoid the early withdrawal penalty.

Answer 2

NEVER EVER withdraw unless you can roll it over into another one.  Your penalties will basically ruin your financial future.

Answer 3

Stay for the ride. The nature of the market is to go up and down. This cycles are very important for the good of your portfolio, and you must take advantage of the cycles.Think of it like candy bar that usually costs $1. One day you go to the store and that same candy bar now costs $0.10. Would you buy more or less candy if that were the case?

The stock market is the only market where people don't like buying when everything is on sale. That's why stock brokers make so much money. Everyone wants to sell when things are going down (broker buys cheap) and everyone wants to buy when things are going up ( broker sells high). And that's why you should hold on to your 401k. This is the best time to increase your contributions.

If you are on your 20s get rid of your bonds, and buy more shares. Bonds are for old people (50+ year of age)

Answer 4

Long term.  That by definition is what retirement investing is all about.

Answer 5

Definitely think long term.  You'll be very glad you did.  

When people ask me what I would change about my life (as I approach the golden years), I always say I wish I would have started saving/investing when I was young.

Answer 6

think long term bro, with the 401k penatly for early withdraw

Answer 7

Withdrawal's cause a tax situation before retirement..

You will pay your typical tax rate PLUS a 10% penalty for early withdrawal.

If your nervous about the markets...select a money market option for the time being in your 401K.  They pay a low interest rate but do not decline in value (principal).

Anyhow, one should review their 401K statements at least once a quarter or every three months and know what they are invested in etc...

Get help from whomever administers your 401K plan and be diversified in your investments.

Answer 8

Only a fool would withdraw from their 401 unless they have a game plan in place to roll it.  

If your thinking long term, why are you thinking about withdrawing from a tax advantaged account??

If you're "so worried", you should not be in the market, and have the 401 trustee put your money in a money market program and you wont have to "worry" about the market.

With the money market you won't have to worry about market conditions, but then again you'll never have capital appreciaton; you will make a minimum amount of interest that will be eaten up by inflation; but you'll get what you want, "no worries".

Answer 9

Even if you decide to sell what you own - you can go to cash within the plan - if you withdraw the funds you will pay a big tax penalty