Stocks Market? 401k plan / Money Market? Diversify?
Friday, August 10th, 2007
SONYA G asked:
I have about $150,000 in my 401k but I’m not well diversified. I’m 37 yrs old with many more years to work. I have 99% in stocks and not much in mutual funds, etc. With the market near another high should I be worried about a crash and losing much of it? Also, I have a 401k loan of $20,000. I have the money to pay it back but its in a money market acct. earning 3.87 %. I’m worried about putting it back into my 401k and taking a loss. YTD I have a 7.76% return on my 401K.
I have about $150,000 in my 401k but I’m not well diversified. I’m 37 yrs old with many more years to work. I have 99% in stocks and not much in mutual funds, etc. With the market near another high should I be worried about a crash and losing much of it? Also, I have a 401k loan of $20,000. I have the money to pay it back but its in a money market acct. earning 3.87 %. I’m worried about putting it back into my 401k and taking a loss. YTD I have a 7.76% return on my 401K.
Any suggestions on what I should do? In summary,
1- Diversify or stay the same?
2- Pay off 401k of keep money market acct?
3- Risks?
Thank you,
I don’t want to do my own investing so looking for low stocks and selling is not an option for me. I was wondering if I should stay in agressive stocks or get out into something more secure. If the stock crashes I’m not sure how it would affect my current money, but I think I would loose it with the profits/gains, correct?
Question posted courtesy of: Alfred
