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throwaway18000081 t1_jacpsrp wrote

Reply to comment by GoodbyeTobyseeya1 in Quitting job soon - anything I should do now with 401k before resigning? by cantnap

> Once it’s in there, make sure you invest it, otherwise it’s just sitting as cash and getting no interest.

The settlement account that your money just sits in earns interest. Right now, those accounts are earning ~2-4.5% interest.

Vanguard: https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx

Fidelity: https://www.fidelity.com/mutual-funds/fidelity-funds/money-market-funds-fcash

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GoodbyeTobyseeya1 t1_jacs991 wrote

That's more than I'd have thought. When I quit my job in 2013 I just let the money sit there for 5 years until I learned more about investing and realized I'd lost a ton of money by having it gain a couple dollars a month.

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throwaway18000081 t1_jacskth wrote

You are correct in your statement to invest the money, it is just that interest rates are quite high at the moment and expected to go higher.

Why invest into a risky market right now when the guaranteed account is giving 4.5%!?

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jongleurse t1_jad08uc wrote

Because nobody knows whether the market will actually go down or up. Staying out of the market right now because it's risky is saying that you believe you know what direction the market will go. On the contrary, the research indicates that time in the market beats timing the market.

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