What to do with your 401k in a bear market

It’s a Bear Market! What to Do with Your 401k Now

Investing in your retirement requires forward thinking and nerves of steel. You know that the stock market rides a roller coaster—first up, then down. Most people hope to buy low and sell high, as the adage goes. They want to make their money as fast as possible and often get caught up in the hype that comes from emotional investing. The news talks about inflation, foreign conflicts, and the price of gas while Wall Street rushes to predict the next bull or bear market. You may have heard that a bear market is bad news, and for some, it is. However, when you work with experienced 401k providers in Mississippi, you may find that a low market offers some good opportunities for your retirement funds.

How Not to Let a Bear Market Get You Down

While some investors may think the sky is falling, you are a savvy planner, and you know this too should pass. So, what do you do with your 401k when the market seems to sour, leading to losses in your retirement account?

  1. Don’t Panic: It’s a good idea to take steps to limit losses, but you don’t want to fall into the temptation of panic selling. The market typically corrects itself, and if you take precautions now, you may come out better than you expected, when it does.
  2. Review Your Goals: You should already have a strategy in mind for your retirement planning. Now is a perfect time for reviewing and reminding yourself of what you want to accomplish. Your 401k provider can sit down with you and help you see where you are and what to do next.
  3. Consider Your Age: If you have several years before your retirement, you are in a prime position to come out on top when the bear market is over. If you are within a few years of retiring, you may need to shift your investments into much safer vehicles.
  4. Increase Your Contributions (If You Can): This sounds like an odd suggestion, but remember the buy low, sell high philosophy? While others are dumping shares, you may be able to swoop some up at a great price. When the market turns back up, you benefit.

Ride Out the Bear Market with Help from an Experienced 401k Provider

Avoid making rash moves with your retirement funds. We at Executive Planning Group understand the concern that creeps up when your retirement is in jeopardy. Let us help you make decisions on where to invest. We have a wide range of services to help you meet your wealth-building goals, including retirement and college planning, group insurance, and estate planning. Learn more when you contact us today or request a quote online.

Call us at 601-982-3000 to talk to us about your 401k retirement account.

Disclaimer: Securities offered through Valmark Securities, Inc., Member FINRASIPC. Investment advisory services offered through Valmark Advisers, Inc., an SEC-registered investment advisor. Executive Planning Group is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.

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