Protecting Your 401k

Most Americans have been watching their 401 K accounts drop lower and lower over the past three quarters.
Analysts say officially we’ve been in a bear market - or a slumping market for investment accounts - for ten months.

So where’s the bottom?

Well no one knows exactly, but local experts say downturns like the one we’re in now historically last anywhere between 6 months and two years.

To weather this storm and re-coup your losses, local experts suggest taking another look at your portfolio to make sure your investments are still evenly diversified.
“We’re now at 20% downward trend in all major industries over the last 12 months. We’ve seen a lot of people’s initial allocations get out of whack. They need to be looking at it, they need to be considering re-balancing their portfolios,“ says Hal Holland of Red Mountain Wealth Management.
How you should rebalance and change the make-up of your 401k plan depends somewhat on your age. Although everyone should spread the risk out, Holland says younger investors might want to consider buying low, while the market is 20 percent down. Older investors closer to retirement likely need a more conservative game plan.