401K
I am retired and my 401K has taken a very large hit so far this year. Do I wait it out for the market to turn? What are some reasonable options?
Thank you
Terry Says
Oh, I wish you had asked months ago. I have been advising people to raise cash in their retirement plans, not only to avoid a sharp drop in the market but the avoid a prolonged period of low returns. There’s an old sayng in the stock market: “Sell down to the sleeping point.”
A lot of people are waiting for a “bounce” to sell. I’d raise a bit of cash now, regardless of where the market is. Then you won’t panic and sell a huge portion of your holdings at the wrong time.
