Business Insider: 9 Things to do Right Now if your 401(k) is Tanking, According to Financial Planners

Published in Business Insider on May 23, 2022

Avoid drastic, impulsive moves

Financial advisor David A. Fowler of High Mountain Financial says that, no matter what you do, you should avoid making any big moves with your retirement funds. He adds that far too many people move their retirement investments to cash during market downturns, and that this move does nothing other than making those losses permanent.

When people get scared during a decline and go to cash, they have usually lost 20%, 30%, 40% or more of their portfolio, he says. At that point, however, they are too scared to get back in after the market has recovered. From there, it’s common to stall so long they miss some or all of the gains that occur as the markets climb back up.

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