401k issues

I am 58 years old 10 years away from retirement, with the volatility of the market, that some predict for the next six months; what is my best approach. Your input would be highly valued.

Terry Says: I understand your anxiety — please read my most recent columns on my website.   You could adjust your retirement plan investments to more conservative choices (beware of bonds, because when interest rates rise –as they will one day — bond prices FALL).   But surely there is an “equity-income” fund or more conservative option inside your retirement plan.

The second thing you could do is SAVE MORE!  Yes, over the long run the stock market will give you a good return (the average annual return is 10% with dividends reinvested ) but the long run is at least 20 years.  So for sure, you want a portion of your money in stocks, but also some additional “chicken money” in a savings account outside your retirement fund.

The worst thing you can do is panic if the market falls farther — so start think about this now.