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Question about what to do

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Hi. I have a 2030x 403b plan with my previous employer that I will soon rollover into my new job. Of course like everybody else I am losing money very fast. What should I do at this point? Should I withdraw funds or should I keep my funds in there? 

Secondly, what happens when your stock hits rock bottom and there is nothing left? Do you lose the stock or just the value of the stock? 

Thanks in advance. 

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These are questions better left to your financial adviser.  Generally, we here are not investment professionals, we deal with the administration of plans.



Two wrongs don't make a right, but three rights make a left.

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BG's advice is correct.  We can't help you with those decisions.  I will throw out a couple of comments:

If you take your money now, it is likely to take a week or more to be reinvested in your new plan.  There is absolutely no way to know but it is possible that the market will be rebounding while you are out of it.  (It could continue to go down of course.)  There's no right answer on what to do but be aware of that.

You are invested in a mutual fund which is essentially a basket of different stocks.  Individual stocks in the portfolio might indeed lose all of their value and essentially poof away, but that is extremely rare.  Typically some other company will buy the assets, even if for pennies on the dollar, and you might up with tiny shares of some other stock.  But it's not like your mutual fund shares are going to disappear or go to zero.  There are many stocks in the fund and you own a piece of all of those companies.

Ed Snyder

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23 hours ago, Tom72981 said:

Hi. I have a 2030x 403b plan with my previous employer that I will soon rollover into my new job.

I am not an investment professional either but I know enough to manage my investments without a financial adviser as I am on the committee that over sees an employer plan from an employee POV. Looks like you have a Target Date fund, 2030. 2030 means that you picked this plan in the event that you retire in 2030. Target Date funds are very popular and common with retirement plans. Find out if you have this type of plan. If you do, read up on how these plans work. Log on to Boglehead.org and you will find lots of objective information about not only target date funds but investing as well.

Before you do anything that you might regret, educating yourself will go a long way to knowing how and why investments in the stock market decline and come back. You can look up a competent financial adviser here: _______________________.


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