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So how can a bear market affect 401ks in the longer term?

Well like we saw in December for example, and there's a lot of talk are we really in a bear market? We see our balances going down. That's concerning for most, if you're in your late 50s or early 60s, and you are soon to have a retirement, you don't want a bear market to occur. So what you need to be cognizant about is what are the investment options in your 401k plan? Are there options that would allow you to shift from a higher risk to a much lower conservative risk because why you wanna maintain what you accumulated over time. If you're a young person in your 20s or early 30s and a bear market comes along, they always leave and another bull comes along so you have time on your side, so don't fret it so much. Continue to save, in fact maybe pour more money into your 401k in a bear market because you're buying low.

The bull market isn't going to stick around forever.

With that in mind, here's what Tom Zgainer, CEO of America's Best 401(k) has to say about the looming bear market and how it can impact your 401(k):

Well like we saw in December for example, and there's a lot of talk are we really in a bear market? We see our balances going down. That's concerning for most, if you're in your late 50s or early 60s, and you are soon to have a retirement, you don't want a bear market to occur. So what you need to be cognizant about is what are the investment options in your 401k plan? Are there options that would allow you to shift from a higher risk to a much lower conservative risk because why you wanna maintain what you accumulated over time. If you're a young person in your 20s or early 30s and a bear market comes along, they always leave and another bull comes along so you have time on your side, so don't fret it so much. Continue to save, in fact maybe pour more money into your 401k in a bear market because you're buying low.

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