The recent market slide has many investors worried about their 401k. Barry Glassman, Senior Vice President of Cassady & Company and Scott Revare, CEO of Smart401K.com, joined Erin Burnett on "Street Signs" with their suggestions on what to do.
Glassman says it’s okay to “set it and forget it” as long as you set up certain features.
“Most people do their research when they first start and they have the smallest amount of money at risk and don’t revisit as the market hits new highs and they have more money”, said Glassman.
He recommends setting up quarterly rebalancing. “If you’re going to set it and forget it, then set it up with a feature that brings your risk back in line with what you thought was appropriate originally”.
“It is very important even though you’re invested for the long-term in your 401K, to make sure that you pay attention”, said Revare. “Make sure you are invested in all parts of the market. If you’re invested in both value and growth stocks, both large-cap and small-cap, domestic and equity, and you have coverage to fit your risk tolerance between fixed income and equities, you’re going to participate in the market as it goes up overtime."