I have a 401K plan through my company for which I have deductions made from my paycheck twice a month. It is all in mutual funds. What's the best move now? Do I keep throwing money in and hope for the best? Do I stop the contribution and get the cash and buy gold and silver? Assuming the worst, how do I get what I have vested out of there, if that is the best thing to do?

I also have an annuity that was an IRA rollover. What are the options w/ this thing?

What are some good ideas and where can I and people like me find some answers?

Thanks.

-- Bill Van Loon (wvanloon@hotmail.com), July 16, 1998

Answers

Bill,

I administer my companies 401. You should act depending upon how you feel about what will transpire within the next few years. Your plan options will a large impact upon your decision. You may either withdraw funds from your 401 in the form of a loan or other distribution, or, with some 401s like mine you will have to terminate your employment to get your money.

If you are a gloom and doomer you may want to pay the penalty (10%) and taxes (at least 20%) to have access to all of your money. If you are more moderate in your assessment of the situation you may want to simply be very risk aversive in your investment options. I am slowly moving my small balance from stocks into bonds and the money market funds - I hope to beat the "Asian Flu" to Wall Street. I have also thought about changing jobs and getting the balance out in small denominations, but that is when I start feeling paranoid.

Best of luck.

-- bhayes (bkhayes@intellex.com), July 17, 1998.

Also you could move your money into mutual funds that focus on technology stock. CSC (Computer Sciences Corp) is the largest software only company in the world. They have been getting lots of Year 2k remediation work and that should stay steader into the next century.

-- Amy Leone (aleone@amp.com), July 17, 1998.