profit sharing acct
Terry I am 71 and I am still working. Probably another year or so. My retirement funds are in my 401 through my company. I have loss money lately and I am wondering if I should put it in our money market acct and get very low interest until the market levels off. What do you think?
Terry Says
Look to see what choices you have INSIDE your 40lk plan. Is there a money market mutual fund or a ‘stable value” fund in your plan. If so, move half to that option.
But be aware that you must pay income taxes on any money you take OUT of the plan. And a large withdrawal could definitely impact your monthly Medicare Part B premium.
Plus, you’ll never know when the market “levels off” and it’s time to get back in– except in hindsight.
This bear market will likely take a while, so selling some stock funds INSIDE the plan will help you sleep at night.
Please read my latest column Anatomy of a Bear Market on my website.
