I have a 401k from a previous employer. I've kept it in their account mostly because (1) they don't charge me fees to remain there and (2) the account is with a really great fund family. The problem is, like everyone else, the money is allocated to funds that are losing money. If I were still contributing to the account on a regular basis, I'd probably hang on and continue to buy shares of the funds at a discount (love those sales!) However, I stopped regular contributions long ago so whatever I'm losing, I'm losing on previous earnings.

Would you cut your losses and re-allocated the money into something safer? They offer a 2.99% money market fund. Or would you hang in there and hope the existing allocations rebound? If I move the money, the chance is I will miss the rebound and end up buying into the funds later at a higher price.

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"I've been rich and I've been poor but independently wealthy is where it is at."

I would look at the perfomance numbers for the funds you are in (5yr, 10yr, since inception). See what the funds did in 2003 after 9/11. If they are solid, good quality funds I would keep them there until the market rebounds...which it has done historically. If you aren't retiring in the next few years, you would risk losing money. As of right now you have lost nothing...until you sell it.

My 401k and investments were down in 2001 & 2002. In 2003 the funds were up 30%. If I would have moved everything to money market, I would have lost TONS of money.

Buy and hold is still the best strategy when you are in good quality funds and well diversified.

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IT'S A BOY!!!

I totally agree.

If you are not planning on tapping the money right now you are not loosing anything until you sell. Leave it where it is.

When you move to a private fund then you wind up with annual fees which even if it were performing better you will find those fees chew into it.

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Grace

Wife to Stoney

Mommy of Sarah (9), Hannah (7.5), and John(5)