401K Newbie Question

S

stocktrader3429

Hi Guys,

Quick newbie question:

When I contribute to my 401K at work, assuming I see gains, do I need to sell my holdings manually to lock in those gains and reinvest? Or does my 401K management company auto sells my holdings at the end of the year and reinvests the proceeds?

Thanks.
 
You don't have to sell/buy anything at the end of the year. You can hold an investment as long as you like, or buy/sell to adjust your investments whenever you like.
 
Thank you!

I get that. But will Fidelity/Vanguard auto sell to lock in gains so it's compounded year over year. Or is it like regular investment accounts where I hold the stock for as long as I want and there's no autoselling. Does that make sense?
 
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