Re: Current balance/ change in vesting

[Robert <http://dummy.us.eu.org/robert>]

 > From: heather Howard <http://www.gmail.com/~hhoward40>
 > Date: Wed, 18 Mar 2020 22:57:50 -0700
 >
 > Hi guys,
 > 
 > So with the markets plummeting, I am down to about $395,000 from $450,000 about 
 > a month earlier.  I scaled back my 20% contribution to 0% to recap the 
 > difference monthly to to save it.
 > 
 > Robert, would you recommend reaching out to Fidelity to see how the remaining 
 > money is being invested to change those investments (which are based on my 
 > retiring at 65), leave it, or take out  some money to increase savings  and 
 > lose 1/3 in taxes.  And/or loan against 401K?  What is the safest bet at this 
 > point with all this market volatility?

Volatility started a while ago.

Caveat emptor: your brother may have different advice than what's outlined
below.

Are you using a target fund?  If not, I highly recommend it.  I have
always been conservative in my investments in the past, with one 2020,
another 2025, and another 2030 fund.  It depends on your risk tolerance,
obviously.  If you have a choice, Vanguard is always preferred since they
have a very low turnover rate (the rate at which they sell/buy).

The Great Depression lasted over 10 years.  I thought that the Great
Recession would have too, but it only lasted about 4 years.  (It was way
too shallow, which is probably why we're in the trouble we're in right
now.)  If you think you'll continue to be employed for the next 4 years, I
would suggest that you keep contributing to your 401K since this is a
great time to buy; if not, you may want to take some of the precautionary
measures that you bring up.

If you have enough money to live on for now, you should not take money out
of your 401K.  Only when you are really desperate should you do that.
Taking out a loan against your 401K is preferrable to doing that.

 > Please advise,
 > 
 > Heather