Liquidating and withdrawing your 401 k because of an supposed impending market crash i s n 't the most suitable advice for most people 401 k s are designed to be retirement vehicles so by its own nature it is investing with a long time horizon Trying to time the market has always resulted in an unfavorable outcome The market has always recovered and returned stronger than ever from every crash and recession JP Morgan did a study spanning 20 years showing that trying to time the market and missing simply 10 of the best days across 20 years will result in returns cut nearly by half W h a t 's even worse is that most of the strongest days occurred during bear markets showing that its common to see strong rebounds after a strong sell off Lastly liquidating a 401 k i s n 't as simple as