General Question

amandawm's avatar

I have a good amount of money invested into my 401k as a 26 year old. I'm thinking about just cashing it out and taking the loss of half the money i invested. Which kills me to think about this. But I'm afread of this ecomony and this amero. Should I just cash it out? Or wait? I'm thinking I could loss more if I just left it in... Am I right?

Asked by amandawm (1points) August 28th, 2007


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9 Answers

jrgould's avatar

Don’t do it. A 401K is an investment that is meant to grow over time. Sometimes you lose sometimes you gain, but short of an economic disaster you will gain if you leave it alone. The tax you will have to pay on the money you withdraw will be yet another loss on top of the future gains you will losing.

donok's avatar

I agree. Don’t even think about it. Just make sure it is invested in smart, safe places and over the next 40 years you will be fine.

glial's avatar

Leave your money where it is. It will most likely gain at least 10% over time.

amandawm's avatar

how bout moving more money into international? I have 37% in there so far.

gooch's avatar

Dont do it. That’s crazy talk. You would regret it later

gailcalled's avatar

Think of the long-term economic issues. You are very young; DO NOT PANIC. Leave the money alone. The market will eventually bounce back; long before you are gray and creaking. You could diversify in the future w. some other non 401K investments, since you have years of earning power ahead of you….. but do the research and think about your tolerance for risk. I have seen the market make huge dips up and down over a long life; during the scary moments, I let my (conserative) portfolio just sit. That has been a good thing; I am not a gillionaire but am comfortable in my dotage.

erik's avatar

Don’t touch it! keep it in there, keep contributing. Even if the fall continues. The stock market is down, so the more money you put in now, the more stock you’ll be able to buy for cheaper. You’d be looking at tens of thousands, if not hundreds of thousands, of lost gains over the years if you take your money out now and suffer those penalties.

erik's avatar

Oh, and if you’re worried about the U.S. economy, you might want to put a chunk (maybe 15–25%) of your portfolio in overseas stocks and mutual funds. They don’t always move in the same direction as the U.S. market, and helps diversify your risk.

gsiener's avatar

If you’re super worried you can leave it as cash…

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