401 K Protection
I am 65 and still working full time. I have my 401K through my employer and my portfolio is at low risk with my impending retirement in a few years. Even with those choices, I have lost thousands over the last few days. What do you suggest to stop the bleeding. The anxiety is horrendous.
Thank you
Terry Says
40lK plans are designed mostly for younger workers, who have a long time horizon and should be in stock funds to grow their retirement plans.
But most 40lK plans don’t have money market funds where you can hide from risk as you get closer to retirement. Ask your HR department if they offer a short-term bond fund. That would be the safest place.
You can’t take money out of your 40lk until you retire. BUT, maybe your plan lets you take a “hardship withdrawal” which would remove a portion of your money from risk. But if you retire without repaying that loan, it will immediately become taxable. Check the details of your company plan.
