I just checked my Macy's 401 and it's down 17%. At this point, I do not see Macy's stock climbing out of the hole it is already in and I see the stock tanking even more. Should I role it over to my Fidelity now, save what is there and potentially loose my match or should I stay put?
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I have recovered half of what I lost in March already, made no changes to my portfolio.
A 401 is just a holding bucket. Is it holding only Macys stock or some other type of fund? Either way, the only thing you do now if you roll over is lock in that 17% loss. In its' entire history the market has always, eventually, made it past its previous high. This will be no different. The decision to roll over needs to be based on
- Your age
- Your investment goals
- The current distribution off all your investments, etc..
I would wait, but move to a 70/30 mix. 70% stable value fund. 30% S&P fund.
You shouldn't lose your match as long as they pay it. I retired a few years ago. Rolled all my 401k into a Vanguard account. When the match was made the following March, It was put into my account that I had zeroed out. It wasn't much because I had retired early in the previous year. I got a letter saying I had to move it out because the amount fell under some limit and I was no longer contributing.
Why would anyone have a company stock position of greater that 10% of their overall portfolio is the real question? Foolish move no matter who your employer is.
You will want to do something quickly. You will have a loss, but if you're hoping Macy's stock will make a comeback, I'd think you're crazy. A partial loss now beats a total loss in the near future. Macy's, Penny's and other big retailers are doomed. If they do live, it will be a much smaller and less profitable operation. They are poor investments.
Your 401k being down 17 % isn't only because of Macy's stock. It's the overall destruction of the market. Look at how your money is invested. There are rules in place for the 401k that limits how much of it can be invested in our company stock. I have very little M stock, almost none, and I'm down too. I'm waiting it out. Don't ask for advice here, seek a professional. But you are responsible for knowing how your money is invested and where your risk is.
It will be penny stock by year end ...