I was watching a 401k expert on television yesterday speaking about how to recession proof your 401k plan. He had several interesting points about 401k plans to consider during this stagnant time in our economy. Some of the questions are fairly simple, but generally speaking, he addresses many 401k points that may be on many peoples minds such as "Should I sell out of the funds in my 401k right now to prevent further losses?" and "What type of strategies should I use in an economic downturn?". Seeing losses in your plan can be very painful and disconcerting upon opening your most recent statements. However, since 401k plans tend to be long term strategies, I would consider buying more, and not selling when your plan tends to drop. If you have maxed out your plan, I would then explore opening a self directed IRA at a company like TradeKing. Find out why TradeKing.com was ranked #1 Discount Broker by SmartMoney Magazine two years running! (August 2006 & 2007). Please watch this video on 401k planning during an economic downturn. Please leave any comments on 401k, IRA, or retirement topics by clicking on the link below.
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