CMP Financial Planning

How to Avoid Panicking When Your 401k is Down


The best way to avoid panicking when the balances in your 401k or other investment accounts go down is to learn some basics about the stock market and develop good investing discipline/habits. Over and over, research shows that emotional investment decisions means worse investment returns. The key to successful investing is more about having a disciplined approach and plan rather than great knowledge or experience. Your investment plan is called an asset allocation.

3 basic investment concepts for your 401k

4 ways to minimize risk within your retirement accounts

There are many great resources for information. Many 401k plans include information on the website. Another good source is MorningStar.com—they even include a series of easy-to-understand mini-courses you can use for self-study.