[quote=moneymaker]Good banter. The average 401k is the same as the average home equity for the average person. So what would hurt more a stock drop or a real estate plunge? Before 2008 i would have said that a real estate plunge would take longer and give people time to exit, but no longer. The real question in my mind is if things are as rosy as the markets and employment numbers say they are then why isn’t gold down around $1000? Luck has been on my side so far but I recognize that it was just luck. We have an interesting situation now economically where the markets are hot and yet people like Carl Icahn and Bill Ackman are losing money,weird. I’ve increased my 401k contribution to lower my taxes but beyond that I have no investment advice. P.S.- Herbal life, clearly an investment pyramid, is up for the year as is McDonalds. Who would have believed that people would still be paying $5 for coffee that they could make at home for pennies on the dollar.[/quote]

Neither, if you aren’t planning to touch it for some time..And if your close to retirement, your 401k probably should be mostly in stock, but instead in cash or fixed income…just for the reason stated…in case it drops for a few years while you need it.