Concerned about your 401(k) losses? Here’s what you should consider.
- 401(k) has lost over 20%
- Adviser says not to worry
- Consider finding a new adviser
- Have a serious conversation with current adviser
- Revisit risk analysis and retirement income forecast
- Ask for a risk assessment and make adjustments
- Shift portfolio to a more conservative approach
- Keep in mind that decline in value is not a permanent loss
- Fear-based selling can cause financial harm
- Adviser should have determined risk tolerance before investing
- Adviser should have shared market expectations
- Consider finding a new adviser if relationship is strained
If your 401(k) has lost over 20% and you can’t afford to lose that kind of money, it may be time to find a new adviser. While your current adviser may say not to worry and that it will bounce back, it’s important to have a serious conversation with them. Revisit your risk analysis and retirement income forecast to ensure everything is on track. Ask for a risk assessment of your portfolio and make any necessary adjustments. If you’re uncomfortable with the level of volatility, discuss shifting your portfolio to a more conservative approach. Keep in mind that the decline in value is not a permanent loss unless you sell. Fear-based selling can cause financial harm, so it’s important to stay the course. However, if your adviser hasn’t considered your risk tolerance and hasn’t shared market expectations with you, it may be a red flag. Consider finding a new adviser if the relationship is strained.
Factuality Level: 7
Factuality Justification: The article provides some general advice and perspectives from financial planners on the situation described by the reader. However, it does not provide specific information or recommendations tailored to the reader’s individual circumstances. The article also includes a tool to find a financial adviser, which could be seen as a potential bias towards seeking professional advice.
Noise Level: 3
Noise Justification: The article provides relevant information and advice for someone concerned about their 401(k) losses and retirement plans. It offers insights from multiple certified financial planners and suggests having a serious conversation with the current adviser, reassessing risk tolerance, and considering a more conservative approach. The article also highlights the importance of not making fear-based decisions and staying the course. However, there is some repetitive information and unnecessary promotion of the tool to find a new financial adviser.
Financial Relevance: Yes
Financial Markets Impacted: 401(k) investments
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial concerns of an individual regarding their 401(k) investments and the advice given by their financial adviser. While there is no mention of an extreme event or its impact, the topic is relevant to financial markets and investments.
Key People: Daniel P. Forbes (Certified Financial Planner), Grace Yung (Certified Financial Planner), John Piershale (Certified Financial Planner), Ian Rea (Certified Financial Planner), Elliot Dole (Certified Financial Planner), Andrew Feldman (Certified Financial Planner)
www.marketwatch.com 
