Mad Mail: Handling a 401(k) in This Market

Jim: Great show! It seems these days that you are the only one not politically motivated with regard to current market conditions and what should or shouldn't be done and I applaud you for that. We hear a lot these days about being out of the market (in cash) and making sure money is in an insured account as a way to protect against current market conditions. The 401(k) that I participate in does not have the option to be in cash, money market or other liquid type fund and of course isn't insured. To my questions, what should 401(k) participants be doing to try and secure the remaining account value since there appears to be no option but to be in the market? Thanks and keep up the good work. --Jim in Minnesota

Cramer says: “First of all, that’s a travesty…everyone should have the cash option…” Here’s what I meant by advising certain investors to be in cash right now. “…if you need money for something short term…don’t risk that money in the stock market right now. Take that off. But if you’re about retirement” – meaning you don’t plan on retiring any time soon and want to have a good nest egg for when you get there – “don’t sell.”

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