You may be anxious regarding how a prospective downturn may effect your 401(k).

You may see that your account balance has dropped if you check it now.

We're still rebounding from a bear market – a decline of 20% or more from a prior peak.

Relax...  

Protect your retirement funds against a recession by taking these three actions.

As the market dips, you may want to sell your investments. This rarely works.

1. Don't sell stocks

You might miss out on profits and compounding income if you sell your retirement plan investments now.

“Resist the desire to liquidate your 401(k) holdings because of recent turmoil,” said Brent N. Bruggink.

You may believe it's appropriate to stop INVESTING IN 401(k) during a recession and record inflation. 

2. keep Investing in 401(k)

But, the reverse is the true.

You should keep investing when the market is down. Because when things get right, you'll end up with higher returns.

You'll miss compound interest and market gains. Worse, you'll miss employer 401(k) matching payments. 

It seems irrational. But, feel the low stock market contributions are like buying stocks at a bargain.

3. Increase your Invesments

When the economy recovers, those extra investments might compound your gains.

Even if you don't, keep doing what you've been doing. You'll likely be happy when the market increases.

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