First point of order; I am a simpleton when it comes to finances. Taking that in to account, my situation is this: I'm wanting to roll 75% of my remaining 401(k) into something that will be protected from the market fluctuations short term, while at the same time, sucking up the tax hit and taking out the remaining %25 minus taxes and penalties to have cash on hand to get me through what has been a lean time for the last few months. If you are reading this and what I'm saying makes sense to you, what would your best recommendation be for doing this?

How long until retirement? If it's awhile, who cares about the short term fluctuations? Just move it out of stocks when there's a peak less than ten years from retirement.

At least that's my plan... IANAFP, so take my advice with a grain of salt.

Sun is right. On top of that, that premature withdrawal tax hit will cripple you. You're better off rolling over to a Roth IRA.

I understand where you're coming from though. I wanted to lower my 401k contributions and buy gold AE and bullion for the longest time, but I procrastinated and this is what I get; increased gold prices due to the bailout and the US mint halting the sale of gold. I've never kicked myself in the ass harder than this. With hard money not a viable option anymore, I feel it might be best to keep on truckin and hope our fiscal policy is revamped.

Otherwise, try to enjoy life while you're still young.

Good points guys, I appreciate the feedback. My 75% that I plan on leaving in will still be a pretty good seed to build off of when the markets bounce back so I'm willing to take the penalties hit on the other 25% just to make my life easier in the here and now. I think ultimately I'm probably one of those jumpy investors that everyone talks about, but I'm fairly financially stable on the big issues so its all good long term I think. Thanks for the suggestions.

And oh yeah, Sunny; If I had a dollar for every potential stock purchase that I could have made when I thought it looked good but didn't pull the trigger on, only to later be proven right by the stocks performance, I would be.... well I wouldn't be rich, but I would definitely have few bucks to put together. No two ways about it, I'm a timid investor. But I'm also not broke

The market is all speculation at this point, so it's nye-aught impossible to guess correctly what to do. The best thing is to do what you feel most comfortable with. Don't 'ride it out' because that's what people on tv or the tubes are telling you. If you really are risk averse, then call an advisor and set up a strategy that you can feel good with not just one that lines up with loud mouthed analysts.

(hint: Defense will be ok, google will not...)

Methinks some disclosure is in order.

I drink my employers kool-aid every day and their stock has saved my portfolio this year. 'Tis a fair trade.