Reply #84: I set up 401 k plans

[Yupster]

and I use about six different companies and have seen dozens of others.

On every option I use and have ever seen there is always some form of money market option. It's where money goes into if the person hasn't chosen an option either. (This has recently changed though as an employer can now use a middle of the road fund as the default option. -- There is always still a money market option though).

Sadly I have seen plans with a bad mix of investments -- maybe eight stock funds and a money market.

I do not believe that the starter of this thread used his/her safest available options and lost that much this quarter though. I'd have to see that to believe it since I have looked at hundreds of quarterly statements in the last couple of weeks.