Experts warn of “Bear Market” that could hurt your 401k
LINCOLN, Neb. (KLKN)- Inflation across the nation is now affecting Wall Street and experts warn of a “Bear Market” for investors.
So what is a “Bear Market”?
A bear market is a drop in investment prices over a period of time. It sounds like a win, but it can be a cause for anxiety among most Americans.
Overall prices could be reason to panic as many don’t know whether this is a sign to sell or buy more stocks.
With inflation comes a rise in interest rates.
With the war in Ukraine heading towards a lengthy 8 month span, gas prices are soaring, and there’s new rumors of wheat price increases as well.
Many Americans are dipping into their 401ks to make ends meet, but there’s 5 tips to help you protect your hard earned nest eggs.
Check your existing assets:
It’s always good to know what you have and how much progress you have made. Auto-deductions are easy to forget about.
Prioritize your emergency fund:
Remember that cash is king for any rainy days you may experience. It’s always good to have a cushion for the inevitable financial storms ahead.
For those of you who haven’t started an emergency fund or you don’t know how to get started, check out the 7 Baby Steps by personal finance personality Dave Ramsey.
Reconsider your contributions to your 401k:
This strategy is a way to avoid any penalties and fees you could receive from pulling from your retirement accounts.
Take advantage of the stock market pricing:
If you are in good financial standing, this may be your chance to capitalize on the bear market to get ahead on your savings goals.
It’s easy to panic when checking accounts too much.