Hi Folks, I am planning to frontload all the 401k money of 2023 to the Google Vanguard account. However i don't want that money to be invested by Vanguard(I am ok for it to be as cash in account)as the market can be shaky. Is there any way we can do that. When i try to do this in website it is only allowing me to change my 401k plan to a different plan. Anyone knows how to do this. #google
Vanguard is the provider so you can’t change that. You can put your money in a money market account in vanguard, but…I mean you’ll be losing to inflation.
I didn’t find any money market account in vanguard. Do we have those in vanguard
Used to I dunno about now
Vanguard Fund 0338.
Can I use this fund for short term let’s say for 2 months and then switch back to a different fund or Vanguard won’t allow me to do that?
Yes! You can always move money between funds. However, check the fund rules.
What’s the point of frontloading it if you just keep it as cash?
I believe they want to get the company contribution, in case they get impacted by the "headwinds".
I am moving to California from Texas and I am doing a Roth 401k and after tax 401k. So if I do the Roth 401k after moving to California then I am paying 10% more state income tax. This way I can avoid paying that tax and also I want to invest 401k in funds only after fed completes its rate hike
Are you planning to reite soon? If not why are you considering putting 401K money in cash? Its golden opportunity to buy low rn...
I feel market will go down more until fed keeps increasing interest rates. I would switch to funds when the fed stops increasing interest rates
You cannot time the market. If you are not taking out money in next 20 years, than these 8 month timing is not gonna matter.. Your money will have 96% of its life left to grow after these 8 months... chill.
Simply select cash as an investment, it’ll redirect your funds there
I didn’t find such kind of option. Did you able to find
You can't do cash (that'd be the Money Market Fund which isn't an option for 401k). The best you can do is select a plan with the earliet target retirement date since those are way more conservative. The further out the target date is the more aggressive (thus risky) the fund will be.
There used to be an option for a money market fund, but I haven’t looked in years
Oh, I'd look for that, then. It's not cash strictly speaking but it does target 1:1 USD so it's as good as cash. It's been a hot minute since I looked at the 401k options so maybe there's an option to use that that I wasn't aware of