<prompt> Human: I dont fully understand how my 401k works. Ive only had it for seven years. I strongly suspect our stock market is in a bubble. Because of this, if its possible for me to divest without withdrawing money from the account, I think it makes sense to? My 401k is entirely comprised of the FD Freedom 2055 K index fund.Is this possible? Have I completely misunderstood the function of a 401k?  <response>: It depends how old you are. Even in 08, clearly one of the worst recessions our country has ever experienced, it took 5 years to get to pre-crash levels. The people that you heard that lost everything were the ones who pulled outta the market. If youre under 45, I would HIGHLY recommend you re-evaluate divesting. By divesting, you could legitimately cost yourself hundreds of thousands of dollars in growth. If youre truly concerned, re-balance to 60 fixed income 35 equities and 5 cash. But again, know that by doing this youre losing out on significant gains, especially on your strong earning years. 