457 acct

By Terry Savage on March 06, 2020 | Financial Planning / Retirement

I am 68 1/2 years old and planning on retiring Oct. 2021 . I have about $150,000.00 in my 457 account at work, they do not contribute. I was putting $800. a month into it. But now I’m very nervous so I stopped it for now. Do you think its the right thing to do? As of last Friday I had only lost 1 1/2 %, but I think I’m too old to be taking a chance.

Terry Says

I think you’re doing the smart thing. And the next step is to review the funds you own INSIDE the 40l(K) plan. If they are all stock funds, you might want to move some to a money market mutual fund, if that is available in the plan. Or you might have a stable value fund, or a short-term bond fund, which you could use as a place to “hide” from the stock market. Meanwhile, all your money stays inside the plan so you don’t have to worry about taxable withdrawals.

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