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I contributed to a 401(k) for the past three years and due to market volatility there is no gain in my contribution.

Its hard earned money. Is it possible to sell all the stocks and bonds contributed? I am not planning to take cash out due to penalty.

Is it possible to keep cash in my 401(k)?

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  • It really depends on the 401(k) administrator, and what investments they offer. At least some offer cash or cash-like options, like money market funds or CDs.
    – jamesqf
    Commented Apr 29, 2020 at 3:27
  • Thanks @jamesqf for your response. Do I need to call my HR or BlackRock? I am not sure what to do now?
    – Test
    Commented Apr 29, 2020 at 3:30
  • Why not look at your plan administrator's web site? I would think that the company woul have a list of investment options, though I have no personal familiarity with BlackRock. (Other than as a really neat desert, of course: blackrockdesert.org )
    – jamesqf
    Commented Apr 29, 2020 at 4:17
  • Thanks and even the customer care is not clear about the options.
    – Test
    Commented Apr 29, 2020 at 7:13
  • Beware of selling in a dip. That is a good way to lose money, Timing the market is almost never a good idea. Stay on strategy and wait it out. Retirement funds are long term investments. Don't let the market panic you.
    – JohnFx ♦
    Commented Apr 29, 2020 at 17:06

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I contributed to a 401(k) for the past three years and due to market volatility there is no gain in my contribution.

That is not surprising as we have had a market crash recently and while there has been some gain in the past three years, most newer investors would have likely seen little or no gain given that their monies were invested over time.

Now you should investigate this further, is this because you made poor investment choices, have high 401K fees, have high fee mutual funds? Your job as a retail investor is to figure all this out and it is unlikely a low wage customer service rep will be of much help and may be prevented to be of much, by law.

An important gauge in all of this is what were your balances at in January of this year? How much gain did you have then?

Its hard earned money. Is it possible to sell all the stocks and bonds contributed? I am not planning to take cash out due to penalty.

Is it possible to keep cash in my 401(k)?

As others have said in the comments, most 401K plans have money market or treasury bill funds that lead to preservation of capital. However, if you put money in those funds three years ago, you would be in basically the same situation you are now. Those kinds of funds do not grow.

Three years is a very short investment horizon and perhaps you need to really examine your risk tolerance and if you should be contributing to a 401K at all. Assuming you are not near retirement age, you will likely see more situations like this in the future where the market crashes if you choose to remain an investor.

Being an investor, no matter if it is real estate or stocks, takes courage and one assumes risks. This is one of those times. Do you have the courage to continue? Are stock/bond investments suitable for you?

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    You probably meant "it is UNlikely a low wage customer service rep will be of much help"
    – Ben Voigt
    Commented Apr 29, 2020 at 15:15
  • Thanks @Pete and following are my portfolio mix. A month back, I invested in small funds and money market but I changed it a month ago. Does the following mix looks good? Bond Conservative 10% TROW Retirement 2055 50% Domestic Stock 28% International Stock agressive 9% Global Technology 3%
    – Test
    Commented Apr 29, 2020 at 15:37
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    @Test you totally missed the point of my answer. You have to answer those questions, no one can do it for you. It is part of your job as an adult. Despite the high fees you may be better off with an investment adviser to guide you.
    – Pete B.
    Commented Apr 29, 2020 at 15:42
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    @Pete B.: Or learn something about investing. But quite honestly, if I were in (what I assume to be) the OP's position right now - that is, fairly young and just starting to invest - I would leave the money in stocks, and keep my 401(k) contributions going there. After all, s/he presumably has the ability to wait decades for the market to recover - like a 25 year old person in 1930.
    – jamesqf
    Commented Apr 29, 2020 at 17:08
  • @jamesqf I agree, but it seems that the OP does not understand the basics of risks or is interested in learning. This is why a FA might help by teaching.
    – Pete B.
    Commented Apr 30, 2020 at 10:35

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