401k Question from young investor

[Vpxggmr17]

I'm 25 and last April started contributing to my Roth 401k with my company (started working there Jan/2012). I do 6% and get a match (half company stock, half cash allocated to my fund choices)

I have now, since April of last year, earned 42% gains on my account. I'm wondering a few things.

Should I take some gains (is that even possible in a 401k?)?

If so, how do I "sell" and change the funds/money markets to new ones to protect my gains in case of volitility the rest of this year.

I can tell that the 401k process is WAY different then how I can actively manage my Roth IRA.

Any feedback is appreciated. Thanks!

[disneysteve]

The simple answer is no.

This is not a short-term speculative account. This is an ultra-long-term investment account. This is money you aren't going to touch for 40 years. Leave it alone. Choose an allocation that you are happy with and let it be. Don't attempt to time the market and trade in and out of things. And don't do it in your Roth either.

[Vpxggmr17]

The simple answer is no.

This is not a short-term speculative account. This is an ultra-long-term investment account. This is money you aren't going to touch for 40 years. Leave it alone. Choose an allocation that you are happy with and let it be. Don't attempt to time the market and trade in and out of things. And don't do it in your Roth either.

Ok that had been my plan but I started seeing people on here start discussing "protecting profit" and my assumption now is that only pertains to taxible accounts to play the market.

I do in fact have my IRA set up in a similar manner, just with funds that I chose based on history/fee and holdings, that weren't offered within my 401k.

[humandraydel]

Ok that had been my plan but I started seeing people on here start discussing "protecting profit" and my assumption now is that only pertains to taxible accounts to play the market.

I do in fact have my IRA set up in a similar manner, just with funds that I chose based on history/fee and holdings, that weren't offered within my 401k.

To answer your question, most 401k accounts have a money market type of account (often called "Stable Value Fund") or, at the very least, a short term bond fund. So theoretically you could "take some profit" by selling a stock fund and putting the money into a money market fund.

That being said, I certainly wouldn't suggest trying to time the market and sell stocks. After all, 7 months ago a lot of people considered selling due to the Fiscal Cliff. And we see how that turned out - stocks are up 15+% since then.

[snafu]

Another point of view adds...It all depends on what you hold, age and how you've allocated your holdings for the next 5 yrs. If you've 100% in laddered CDs or a Bond fund, you might sell some and move to equity like Index or Dividend or a mix. For those who have been contributing for some time, they might consider DCA into a good, long standing International Fund as these are 'bargain priced' these days.

[Jerry91]

401k is your retirement account and the funds that you save here will be helpful for you after your retirement. Being said that, you cannot and should take out money from your retirement funds. Also, if you take out from it before you turn 59 and ½ years of age, you will be liable for paying a penalty.