I look at my 401k frequently. I do adjust based on what sector I think will do well. I got into an energy fund in august 2021, it’s done well. But the majority of my 401k is in sp500, some tech and some growth funds.

For cash savings, I put some of it into Schwabs money market SWVXX, current yield is just under 3%. You can get that transferred to your account in 3-4 days.

Take a look at the sidebar. It has a lot of information that you should consume before you make any financial choices.

1. High yield savings accounts are a liquid choice. Names like Ally are common around here. Over 2% and it’s totally liquid savings.

2. Not sure what you mean by this, but since you are not super experienced I would pick a Target Date Fund for the year you expect to retire, and then never look at it. That’s the best choice for those who don’t know what they are doing. Later, when you know more, you can mess with it.

Here's a link to the PF Wiki for helpful guides and information.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[removed]

Guessing at timing the market, eh. yak. Look less frequently, don't stop contributing at least to any company match.

You've asked for opinion. Here is what I would tell family and friends: One doesn't choose an asset mix for a 401k. One diversifies as fully as possible. One contributes up to at least the company max. ChuanFa suggests a target date fund for the year of retirement -- I'd agree, but add 10 years to that target date. Want to retire in 2050, use VTTSX instead. Oh --and ChaunFa's idea of not looking at it -- solid idea. Even for people who know what they are doing -- solid idea.

High cash yields != high liquidity. If you want it fast, you'll earn nothing on it. If you want it slower, but 'safe', then a CD ladder and/or I-bonds for some interest, even if inflation eats a goodly chunk.

Now -- how much are you contributing and when do you want to retire? Basic math: if you plan on a 4% withdrawal in retirement and want diversified investments to last forever, you'll need 25x your annual budget as a target amount. Live on $10k/yr, that's 250,000 in the account. It's called the 4% rule. I personally use the 3% rule for the same calcs, but I'm not as well-liked.

Another way to look at it: If you use up all of what you earn a given year on your budget, and you want to learn how much you need to put away to live your lifestyle, then the math is easy. Put 5% into your retirement, and in 20 years, you'll have enough to live on for one year. Put 10% in, and you get there in 10 years. Put 25% in, and you have your free year in 4 years of work. See the pattern?

1. Use a high yield savings account. Right now, you should be able to find one paying about 2%.
2. A 401k is a long term investment account, so your goal should be to buy and hold investments. Choose investments when you open account, then ignore until five years before you plan to retire. Young people typically choose aggressive portfolios (75-95% stock), but people near retirement may want a less aggressive and less risky approach (50-60% stocks).

If I am assuming correctly that you are relatively young, why are you so adverse to putting money into the stock market? Long term, it has performed well for most people. What I am suggesting is some S&P fund not individual stock picks. You have a long road to go and the stock market historically has bounced back. You need to start doing this to fund your retirement. Some bank account is not going to do it.