Protect Your Financial Future by Taking a Look at Your 401(k)

A recent Yahoo! finance article offered advice on handling 401(k) investments in the wake of a turbulent stock market. As the market constantly shifts and seemingly hits a record high, or a record low, with each passing day, now may be the time to take a closer look at your investment portfolio.

Evaluate Your Financial Options Now

Jeanne Thompson, a vice president at Fidelity Investments, advises workers with a 401(k) to “check things out” and discuss their money situation with a financial advisor at least one time per year. This is especially important, says Thompson, when the stock market is particularly high or particularly low. Moreover, while many people tend to wait until the beginning of the calendar year to consider rebalancing their finances and reevaluating their investment options, the truth is that there is no set time of year to look into your 401(k). Rather, suggests Thompson, there is no time like the present to check out your finances.

Age Matters When It Comes to Investment Risk

Additionally, a worker’s age is a crucial factor in determining exactly how much risk to take as far as investing – whether it’s putting your 401(k) into the stock market, diverting funds to real estate holdings or otherwise. For example, an employee who is fast approaching retirement age may not want to be too exposed, lest their imminent and well-deserved retirement get pushed back.

By contrast, a younger worker may have more “emotional tolerance” for riskier investments. A recent report by Fidelity indicates that young employees are taking more chances with their 401(k) investments: almost two-thirds of millennial workers are investing 100% of their 401(k) plans in target-date funds, a particular type of investment scheme designed to simplify the investment process by exposing the fund to greater risk based on the age of the investor.

Don’t Make a Rash Decision

Whatever you do, don’t make an impulsive decision and change your long-term investment strategy based solely on short-term changes in the market. If you have a 401(k), keep contributing to it even as values fluctuate.

For further information about financial planning, read the article, “My 401(k) is Tanking. What Do I Do?”


If you are in need of debt relief, whether that includes filing for bankruptcy or some other form of debt restructuring, it is important that you talk to a qualified debt relief and bankruptcy attorney. Joel R. Spivack is an experienced bankruptcy lawyer who will make sure that your 401(k) accounts, pensions and IRA savings accounts are protected from creditors during a bankruptcy filing. Contact Mr. Spivack today to schedule a free consultation and explore your options.

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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