Navigating Market Volatility with Your 401(k): A Long-Term Strategy

Making smart, confident investing decisions means having a plan — not just in the coming days but for the long term.

For many individuals, this includes participating in an employer-sponsored 401k plan as part of a retirement portfolio. One of the most widely used investment vehicles for retirement, 401k plans allow you to contribute to your future with tax efficiency.

If you’re contributing to or have a 401k, you may be keeping a close eye on it and observing performance during market volatility. In times of uncertainty, retirement savers fear the impact of a potential recession on their retirement plan.

Depending on your age, asset allocation, risk tolerance, and long-term financial goals, you may ask yourself, “Is my 401k protected from market downturns? If not, how can I create a plan so my retirement has the best possible chance for withstanding a market crash?”

You can get perspective using Personal Capital’s Recession Simulator. This free, interactive tool shows you how your retirement plan would have been impacted by a market event like the Dotcom Crash or 2008 Financial Crisis.