Moving 401k to Short Term Cash
Lately, I was advised by family member to move all 401k to Short Term Cash. I finally decided to do it this Thursday night, allocated 100% funds to Short Term cash. I read the CNN business news as the tech-heavy Nasdaq fell 4.2% on Friday, dragged down by Amazon (AMZN), which dropped nearly 15% after it missed earnings expectations. The S&P 500 shed about 3.6% on Friday, while the Dow dropped about 940 points, or 2.8%.
My fund management company sold my funds on Friday, so my fund balance must drop a lot! I was not bothering to take a look of it. What was done is done, no matter what. My family member told me that I should listen to him early though.
I checked the statement for the March quarter, and I found out that I lost more than $7000. That means most of my last year contributions were gone. Stock market has been very volatile this year. The inflation is so high, and we have supplies chain problem. I even saw the recommendation from CNN today how to hold up our principal.
I am not an expert and not recommend you to move the fund to Short Term cash, and I just like to share with you what I read and what I know here. Hope everyone makes good decisions on the investment that suitable to you.
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