- Consumer Mood Improves, But Anxiety Over Finances
- Jobless Claims Below 500,000, Durable Orders Slip
- Garlic Price Rises Surpass Gold, Stocks in China
- Judge Erases Couple's $525,000 Mortgage Payment
- Obama Going to Copenhagen Climate Summit
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Seeking Deals, Holiday Fliers Get Early Start
- Americans Ditch Planes for Trains this Thanksgiving
- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Art Cashin: Caution 'Growing' in Financials, Dividend Moves
- Topless Business Is Taking Off
- 3 Software Stock Picks from Lazard's Senior Analyst
- Schork Oil Outlook: Gas Bulls Pinning Hopes on Mother Nature
- Toyota Makes Recall Fix And So Long Saab
- Investors Bet on a New Year's Rally For eBay
- Why You Should Play the Reflation Trade: Stock Picker
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Ritz-Carlton ?Struggling? in the US: President
- Garlic Price Rises Surpass Gold, Stocks in China
- Obama Reiterates Commitment to Boost US-India Ties
- Oil Price to Average $75.40 in 2010: Poll
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Americans Ditch Planes for Trains this Thanksgiving
- New-Home Sales Jump 6.2% To Highest Level in Over Year
- Jobless Claims Below 500,000, Durable Orders Slip
Text Size 
Big moves in the markets can mean big changes in your 401(k), even if you don't do anything. Most financial advisors will tell you not to try to "time" the stock market in your retirement account. But if you just "set-it and forget it," your 401(k) can makes moves on its own. For example, when the stock market surges, your retirement portfolio can wind up with a larger proportion of equities than you planned for and expose you to an uncomfortably high level of risk.
In this CNBC.com web-only Reporter's Notebook conversation with Managing Editor Tyler Mathisen, our Personal Finance Correspondent Sharon Epperson recommends that you check the balance of your 401(k)'s holdings, something that should be done periodically even when Wall Street isn't riding a roller coaster. So, if you had previously decided to have 65% of your 401(k) in stocks and 35% in bonds, based on your goals and risk tolernance, you should look to see if that's what you have now. Sharon notes that some retirement plans feature automatic rebalancing.
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 over time".
Print
Email
- Here's how key provisions of the health care reform bill would impact your insurance and how you'll pay for it.
- Playboy will outsource its publishing operations in a bid to become profitable again.
- Remember when auto shows were major events where new models could generate buzz?
- After nine years the NBA’s minor league equivalent is finally coming into its own.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes