I chose to “retire” at 58 (now 59 1/2). 401K became an IRA — Vanguard.
Never much of a gambler, I had much of the money in their money market, and the rest in Wellington (mixed fund) and International Value. Finally, today, I moved the stock portions to money market in anticipation of more losses. I should have done this days ago; would’ve saved more but oh well. If things perk up I can go back into stock funds. If not, $$ should be safe though static.
I would not close out the account entirely and take the assets unless I really needed the money now. Taxes are a pain and I have many years in which to withdraw if I live that long.
I should’ve stayed the course but got sick of watching the drop each day. Now watch; Dow will rise Friday; then drop back again Monday. Whatever -— if market rebounds in time to go back into stocks I can do that but not cashing out totally means not paying those nasty taxes now.
I moved the biggest chunk of my 401K into bonds back in February this year. I’m afraid to look at what’s left.
I’m 59 1/2 and looking to retire in Dec 2010. I sure hope that I’ll have something left by then.