ORLANDO, Fla. – Despite a rally to kick off October, stocks are deep in the red for the year.
And with the downturn in the markets, come a number of moves you can make to safeguard your 401k and retirement accounts.
If you’re looking to invest, The first thing is to recognize that the markets are going to be volatile over the next six to 12 months. That volatility comes as the fed continues to raise interest rates to fight inflation.
Investment pros say if you’re planning to buy stocks in the near term you’ll want to hold on to them for a few years to see a return.
And be cautious about selling now, while the markets are sharply lower than a year ago, one thing you don’t want to do is lock in your losses.
Now is also a good time to rethink your contributions to your retirement accounts.
Financial planners say people will often scale back their contributions in a down market, thinking they’ll pick it back up when the markets recover.
But the key to 401k success is consistent and ongoing contributions.
By continuing to contribute during down markets you can buy assets at cheaper prices.
That may help your account recover faster after a market downturn.
And check your current allocation to make sure the stocks and bonds in your portfolio matches your risk tolerance.