Surprised to see this thread here especially since I joined the forum to learn more about different firearms in my research for CA compliant arms & ammo, but since I'm a Series 7 and 66 registered & licensed Financial Advisor for a New York based private/mutual firm (without directly spamming/advertising but the company is 163 years old and currently the highest credit rated firm in both the financial & insurance industries and one of the few companies today actually making net profits), I'll chime in.
If you're going to contribute, always take up to the company match. Since 401(k)'s as a retirement vehicle do not have guarantees on your principal, for the short term, any contributions you make, if I were in your shoes, I would put it into the plan's default money market account fund so you can take advantage of the minimal interest gains short term. Your plan's administrator or the Financial Advisor/401(k) company will advise you otherwise because they do not get paid on money that is invested in money market accounts. It's in their best interest to get you to invest in anything outside of a money market fund since that is the only way they can make money based on your contributions.
I wouldn't even touch securities mutual funds for the next 3-6 months short term. With the derivatives market likely to implode, good chance more companies will go bankrupt.
Hopefully, if the US and the global economy can weather the next 6 months, and the market shows confirmation of a reversal, then you can start dollar-cost-averaging portion by portion the contributions you have sitting in that money market fund to mutual funds that are more aggressive considering you have quite some time before reaching retirement.
Too much volatility in the market now and the only people making money right now in the stock market are those who have the experience, time, & Level 2 trading tools to day trade.
If it says anything, considering I'm a Financial Advisor and although I hope for the best that the market will recover for the long term, there's a reason why I'm here and why I'm taking the steps to cover all my bases. I hope for the best, but prepare for the worst especially now that I have a brand new CA home and family to protect.
There are guaranteed accounts available outside of an employer sponsored 401k plan, but since you are specifically asking about 401k's, I won't discuss other IRA / Investment options.
Also, with a Democratic President-elect and a Democratic congress, who knows what these guys will pass. If future tax brackets raise, there maybe better options for you.
Good luck.
Disclosure: Statements I make here are not to be construed and/or taken as fact. Consult your own professional advisors and/or CPA for financial and/or tax related advice.
