During the Coronavirus Pandemic, Should You Lower the Amount Allocated to Your 401k?

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Worried about your finances?

Should you be lowering the amount that you're putting towards your 401k because of all of the economic uncertainty?

Sallie Krawcheck, CEO of Ellevest, joined TheStreet to discuss how you should be approaching your 401k.

Watch the video above for more.

And watch the extensive interview with Krawcheck here: How to Handle Market Volatility, Manage Personal Finances During the Coronavirus Pandemic

Video Transcript:

KATHERINE ROSS:
Should someone lower the amount that they're putting towards their 401k or keep it the same currently?

SALLIE KRAWCHEK:
If are able to keep it the same, whether it's in your 401k, whether it's your brokerage account and your investing account. I don't know when this financial downturn, this pandemic will be over. What I do know is that we have recovered from every single economic downturn in history and we've recovered from every single bear market in history. And typically, when you look back at these bear markets, these are the times you're glad you bought. It may go lower, there may be a better time to buy, but you can just see when we're sitting in the rocking chair on the porch because we want to not because we're forced to because of social distancing, in some way years, we'll say, "Boy, when I made those contributions in 2020," just as people do today for, "Geez, if you bought in 2008."

SALLIE KRAWCHEK:
Now, the truth is most folks don't know when that exact downturn is going to happen. Nobody foresaw this coming. Nobody will foresee that today's the day. And that's why if you're able to financially, if you've still got your job, if you've got your emergency fund in place, continuing to invest some amount out of every paycheck, not looking at the market, not making choices about it, but just being disciplined, having a plan, historically, has always, always paid off when you get to the other side.

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