[buzzgirl]

Hello! I am very worried about the economy- it seems a crash is inevitable. Can I save my 401K somehow? What's the best route to go?

[tomder55]

I answer this as a non-professional investor who dabbles in the market . I have a good sum in a 401-K and faced similar concerns.

If you are into capital preservation and are planning a retirement soon then perhaps it is possible to transfer the funds to a fixed income account. That is what I did with some of my account.

If you are young and longer term then I would continue to invest in the lower priced shares that the market is offering ;betting that the market will eventually return to the levels it was at.

My own philosophy about the stock market is to buy low and sell high so I am watching the market closely . I had thought that it would turn around in the fall ;but there is a lot of uncertainty that is factoring into the market now.

[George_1950]

Speak with your plan administrator about changing the type of investments; my own view is that you are worrying too much. See for more info on 401k plans: Intro to 401k Plans

[ebaines]

If you are losing sleep over it, you should consider moving to a fairly conservative investment mix - perhaps 60% or more in fixed income (bond funds) and the remainder in securities (stock funds). This may be good for your mental well being. However, if you take the approach that the money in your 401(k) is there for the long term (depending on your age), then you shouldn't sweat it too much - if you are 20 years or more from retirement you are likely to experience at least two more bear markets and some strong bull markets as well. It's the long term results that count, and no one can predict when the market will turn, so if you are parked in fixed income you will miss the next big up move when it comes.