Out of curiosity, what happened to all the folks that panicked and cashed out their 401k in the middle of the pandemic?

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I put 1/3 of mine into a brokerage account. It went very well.

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Ah, I can see how my comment was misleading. I technically kept it in my 401k, just redirected it from the automatic funds into a brokerage I can control to buy individual stocks. I’m young and did this in response to company stopping the match, to take a chance at recouping those loses. Put most of it in Amazon during the dip.

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My parents cashed out their brokerage account near the bottom, against my recommendation. They're in their 80s, so exceptionally risk adverse.

The lost hundreds of thousands.

helpful

Don’t sell at the bottom. Got it. Thanks Strategy!

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Converted it to Roth IRA

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I kept everything where it is and it went up $250k last year.

uplifting

Next time once the market starts to dip you should move your money into a conservative fund or bonds instead of cashing out. You don’t want to pay the cash out fines.

But if it’s already bottomed - just leave it there. Stocks move up and down all the time. If it’s in mutual funds it will grow back to the original amount.

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