06 Jun Should I move my retirement savings to a money market?

Q. I have always saved in my 401(k) and the money is invested in several mutual funds. I’m still nervous about the stock market with Trump and I’m thinking of moving the money into a money market. I’m 55 and I will work for at least five more years and this is my only savings. What do you think?
— Still working

A. There are several things to consider as we watch the ups and downs of the market in today’s climate.

You’re smart to consider your allocation to make sure it’s right for you.

You didn’t specify if you were thinking of putting your funds in a money market for only a short period of time, noted Matt Rembish, a certified financial planner with OneDigital in Boonton.

“It is extremely difficult to time the market because you must be right twice – you need to know when to get out, and when to get back in. No one truly knows how the market will perform in the future, but historically staying invested through volatile market cycles has rewarded investors,” he said.

Investing in the money market may save you from potential loss, but you may also miss out on gains, he said.

Rembish said if the volatility is too much for you, then investing in the money market may make sense, but remember you’re investing for the long term.

Being in several mutual funds that are invested in different areas of the market is great for diversification, but what I am most concerned about is what percentage of your portfolio is in stocks vs. bonds, he said.

The question to ask yourself is “When do I need this money?”

“As you get closer to retirement, it makes sense to put a portion of your portfolio in a less risky asset like bonds,” he said.

Let’s say you retire at 60. You most likely will need to use some of your portfolio in five years to live on.

But retirement is a long-term process, Rembish said.

“You will be using this money for expenses in your 70s, 80s, and beyond,” he said. “You can think of the stock portion of your portfolio as your long-term bucket of money for your expenses later in retirement.”

Email your questions to .

This story was originally published in June 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.