The 401k deed is done.  After some number crunching I’ve decided to lower my 401k contributions from max of $16,500 for 2009 to 6% with a 6% match for the 2009 year which will be ~20k for 2009.   I also decided to push all new contributions and matching funds into money market and a bond fund, hoping that the money will be preserved.

I am primarily focused on the preservation of these funds for future investment at some point in late 2010 or perhaps 2011 so I’m ok with the fairly mundane choices.   I have also decided to stop all deferred comp contributions into a 409a plan because these funds are technically “assets” of the company until they are paid out to me at some point in the future.   It doesn’t take a rocket scientist to figure out that if a worst case scenario emerges, this money can disappear forever rather easily.

The changes will result in a higher paycheck most likely over $1k per month in extra income but I’m not sure because the tax structure hasn’t been officially released for 2009.   I’ll take the extra cash and hold on to it and perhaps build a secondary emergency fund.  It’s time to batten down the hatches and stock up on cash.