Five Rules For Protecting Your 401(k) Against Economic Uncertainty

While experts suggest that there’s no need to panic, yet, sudden changes in the market can have dire consequences on the greater good of the American and global economy. The 2008/2009 financial crisis taught us how to be better prepared.

To ensure your retirement is protected against any sudden economic developments, here are five rules which you can follow.

Always Have a Diverse Retirement Fund

Normally, employer contributions would make up around 10% of the overall retirement fund, the rest should be overseen by the person themself.

The first to look at is buying stocks on the market. This comes with added risks and market volatility never remains the same.

Make Continuous Contributions to your 401(k)

Banking solely on employers funding the 401(k) plan is not enough, and during times of adversity, it’s good to ensure you have enough saved up to help you live out a comfortable retirement.

Generally, some experts suggest that you should put away at least 30% of your salary towards your savings or retirement fund.

Set Cash Aside

It’s not unusual that your 401(k) will lose money over time, perhaps some of your mutual funds may not be performing at their current best, or you may need to consider reallocating your 401(k).

Having cash aside is one of the best ways you can protect your retirement plan and your financial well-being.

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