Here's a pretty interesting article about handling your 401(k) in today's current economy, specifically for people looking to retire within 20 years.
I've been getting a lot of emails in recent months from people who are anxious to "cut losses" in their 401(k) or other retirement accounts.
But as understandable as that sentiment may be, you don't want to focus just on recent losses in setting your investment strategy going forward.
That's not to say that you should ignore losses. You shouldn't (and probably can't anyway). Losses can reflect not just an overall market slide, but in some cases indicate a poor investment decision on your part, such as buying a fund without really understanding how it works or what its risks are.
But as understandable as that sentiment may be, you don't want to focus just on recent losses in setting your investment strategy going forward.
That's not to say that you should ignore losses. You shouldn't (and probably can't anyway). Losses can reflect not just an overall market slide, but in some cases indicate a poor investment decision on your part, such as buying a fund without really understanding how it works or what its risks are.
Click here for the full article
by Rob Wildhack
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