The very nature of investing is that you expose money to reasonable levels of risk with the expectation of achieving a profit or gain. Not all of the choices in your 401(k) plan carry the same level of risk. Just remember that in order to achieve a reward, you must be willing to take a reasonable level of risk. No risk, no reward.
The biggest problem with moving your account into a "cash position" is figuring out how you will know when to move it back into investment funds that will give you a chance of achieving a gain. A better idea would be to contact your plan's administrator and make an appointment to meet with an investment counselor to assess all of the options you have in your 401(k) plan. This person can help you match your tolerance for risk against the options you have in order to find the most comfortable place for the money you are contributing to your retirement account.
By the way, the only stupid questions are those we don't ask. It was great to hear from you!
If you choose to take early retirement at age 62, there are earnings limits that may affect your benefits. In 2023, the limit adjusted for inflation is $21,240. This means that if you earn more than this limit in a year before reaching your FRA, Social Security will deduct $1 in benefits for every $3 earned above the limit.
In the year you reach your FRA, different rules apply. You can earn more without having your benefits reduced, and there is no earnings limit.
Please understand that these figures and rules can change over time, so it's always a good idea to check the most up-to-date information from the Social Security Administration or consult with a financial adviser for personalized guidance regarding your specific situation.
I hope this helps and encourages you to continue your research as you make decisions for the future!