With market headlines flashing warnings and gold prices soaring, some Americans nearing retirement are feeling the pressure. One 70-year-old investor wondered if now was the time to move part of his 401(k) into cash.

Fear Of A Crash, But History Says Otherwise

That question came during a recent episode of “The Ramsey Show,” where Robert from Nashville asked hosts George Kamel and Jade Warshaw if shifting to a money market fund made sense in the current climate.

“Gold’s high, the dollar’s down,” he said. “I’m spooked by the indicators.”

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Robert and his wife have about $400,000 in retirement accounts and another $100,000 in a high-yield savings account. Despite earning an average return of 10.89% over the past 23 years, he worried about retiring in 11 months and possibly getting hit by a market downturn.

The hosts urged him not to let fear drive his decision.

“If you ignored headlines for the rest of your life,” Kamel said, “I guarantee you, you would be twice as wealthy than the person who goes, ‘Well, I’m spooked. Let me jump out. Let me jump back in.'” 

Robert said that during the COVID crash, he jumped out of the market and regretted it. “I missed a big part of that roller coaster,” he said. 

“Time in the market beats timing the market. You’re living proof,” Kamel replied. “Most of the best days happen right after the worst days.”

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Riding It Out With A Cash Buffer

Both hosts praised Robert’s current setup. With $100,000 in an HYSA, they said he has a cushion to weather a dip without touching his investments. “You can weather the storm,” Kamel said. 

They also said that scary headlines are often used to push products or stir panic. “There are indicators that are freaking people out right now,” Kamel said. “And a lot of people are taking advantage of that. It gets clicks, it gets views, it gets you to buy their crypto and their course and their gold and silver.”

In the end, Robert said what many people feel during uncertain times: “I just needed someone to talk me off the cliff.”

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