Question: How should I invest my 401K if I intend to leave my current employer after 1 year?
I intend to leave my current employer in approximately one year and then move my 401k into another 401k or IRA. Does it make sense to just keep everything in a money market fund? Would I have to stay with the same funds for 5 or more years to reap any benefits from the stock market?
You can’t move a 401k into another 401k, but you do have the ability to roll it over into an IRA. Which assets you pick depends on your desired asset allocation and the amount of risk you would like to take. If you are young and aggressive, invest and equities. If you are nearing retirement age and conservative, opt towards bonds and money-market funds.
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