- US Debating What to Do With Billions of TARP Money Left
- For Video Game Makers, Stakes Are High for Holidays
- Is BofA Considering Jon Corzine for Top Job?
- In Charity Tax Filing, a Real Glimpse of Goldman Sachs
- 30 Year Mortgage Rate Falls Again; Lowest In Five Weeks
- No Near-Term Inflation Threat: Fed's Plosser
- US Mortgage Refinancing Up; Buying Demand Sinks
- Intel Agrees to Pay AMD $1.25 Billion to Settle Disputes
- Ford, Hyundai, Audi Gaining Consumer Interest
- Busch: Another Obama Opportunity
- Light the Lights! Buffett and Gates Prepare to Answer Students' Questions at Columbia
- Farrell: Retailers?
- A Public Hearing That Isn't Public
- Boise State's Brilliant Stock Plan
- Apple's Global Retail Invasion
- Intel Settles; AMD Settles the Score
- For Video Game Makers, Stakes Are High for The Holidays
- Schork: Nat Gas Bulls Need a Snow Day
MOST SHARED
- Jobless Claims Post Another Drop as Picture Improves
- Obama Plans Jobs Summit But Not Second Stimulus
- Wal-Mart Holiday Forecast Light, Profit Beats
- A Public Hearing That Isn't Public
- "Friending" Big Pharma
- Obama Most Powerful Person in World: Forbes
- Meet The Leaders of the New Retail Revolution
- Pricier Beer Helps AB InBev Operating Profit
- Activision Says 'Call of Duty' Sets Launch Record
- US Will Borrow Less as Banks Pay Back Funds: Geithner
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
- Billboard allows music lovers to watch concerts for free online, with five different camera angles.
- US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
- A European dating site finds lovelorn singles from one specific country to be uglier than any other. Who is it?
- Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
- Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
Data is a real-time snapshot *Data is delayed at least 15 minutes