Should I Move My 401(k) to a Money Market Fund?
Moving part of your 401(k) to a money market fund can make sense as a short-term way to preserve capital near retirement or before a planned withdrawal. However, it is usually a poor long-term strategy for younger investors because money market returns often lag inflation and diversified growth portfolios. The right choice depends on your time horizon, risk tolerance, and whether the move is part of a plan or a reaction to market fear.