It’s important to sidestep doing anything with your 401(k) that could disrupt your long-term retirement planning, experts say.
However, financial advisors generally agree that withdrawing money from your 401 should be a last resort, even if you are financially strapped.There are other ways to reduce your immediate obligations so you don't have to come up with cash to pay them, he said. For example, you may be able to put a student loan or mortgage in forbearance.A couple things can happen if you sell your investments — whether individual stocks or, say, a target-date fund — and move the money to a cash account .
Although it's impossible to predict what stocks will do from here, research shows that missing out on the best-performing days of the market — regardless of when the bad days are — can"It's a natural reaction to allow emotions to take the wheel and pull out of the market when it drops rapidly," Anderson said. "But if at all possible, locking in losses today should be avoided.
"A huge mistake would be to stop your own contributions if your employer stops matching," said CFP Kristi Sullivan, owner of Sullivan Financial Planning in Denver. "The employer match was, is and always will be gravy."
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