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You are here: Experts > People/Relationships > Retirement Planning > Mutual Funds > 401K
Expert: Warren Boroson
Date: 11/28/2007
Subject: 401K
Question
I'm 55 year old. Currently I'm loosing money on my 401K. Am I loosing money only on the paper because I'm over 10 years away from my retirement? Do I need to worry about only points that accumulating or should I take out money as loan and put it in somewhere? My friend told me that I don't need to worry about the dollar amount now, only points that accumulating matters right now. Is it correct? Please advise.
Thanks.
Answer
Desr Tina--
It's very possible that you have nothing to worry about. You may own good mutual funds that are only temporarily losing money. That's true of many fine "value" funds now, those that buy seemingly inexpensive stocks. So, if you have a long time horizon, rest assured that these funds will bounce back sooner or later.
But...
you may own lousy funds. Some 401k plans are put together by incompetent people, and it may be that your own 401k plan contains chronically poor-performing funds.
Go to a library and check what Morningstar Mutual Funds writes about your funds. Don't just check the star ratings; read what the analyst thinks about your funds.
Or email me a list of what you own, and I'll give you an opinion.
Best wishes,
Warren
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