Your 401(k) Future: Stay the Course or Make a Change?

Posted on Sep 07, 2011 by  in 401(k) Retirement Planning, In the News, Retirement Readiness

“Without 401(k), it would be worse,” said David Wray of Profit Sharing/401(k) Council of America (PSCA). Wray is right on target for responding to those who blame the 401(k) for the recent stock market drama. The 401(k) has never been the problem – it is actually the best solution for those looking to be retirement ready.

Wray points out the fact that 401(k) participants do not disappear simply because of dips in the market. “They were buyers after 9/11, they were buyers in 2009. They are buyers today,” said Wray. “They were holders after 9/11, they were holders in 2009, they are holders today. Their buy and hold behavior augmented by dollar cost averaging has not only benefited them through over a decade of wild economic swings, it has cushioned market declines.”

If you have questions about your money, talk to a financial planner before making any final decisions.

If you happen to be one of the many people with a 401(k) plan and are questioning whether or not you should make changes due to the market, be patient. Before making any sudden decisions, talk to a financial planner. Having a professional opinion can help guide you and your investments in the right direction, while giving you peace of mind.

Market fluctuation is inevitable. The best thing you can do is seek a professional opinion and gather all of the facts to avoid making any impulsive decisions.

Do you agree with Wray on his recommendation to “stay the course” when it comes to your 401(k) plan?

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