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May be wondering about is -- 401 case safe.
If you look at the market recently the answer is undoubtedly now or at least to feels that way the Dow has fallen nearly 5% in the past month.
Falling under thirteen thousand benchmark as a result.
Retirement account had taken a big hit.
-- -- joins me now he's president and CEO of the online for -- -- K.
Hey Chad welcome back to the show think you know.
People were just getting ready or maybe they had just dip their toe back into the market a lot of 401K investors have not been thrilled about stocks.
And so finally they're getting back in and what happens -- Powell.
Is this gonna kill investor confidence all over again.
It might do you mentioned previously what's the silver lining and I asked him off fair I'm not sure what the silver lining is.
-- I think that what people really need to take away from this is that they can't just blindly follow the -- they really need to pay attention to their own account they need to pay attention to what they're invested in.
And they really need to pay attention to what is their magic number what number rate of return do they need in order to secure their own retirement a lot of people don't know that number.
Well it's hard number to come up with members of the entire book written about the number what is the number that you need to -- -- -- -- a lot of people.
Worry about that and there are a lot of answers in the marketplace but.
Look I think that people have been very nervous about this market they don't like it not they've seen as a sell offs as -- seen the problems the electronic glitches on the night CNN their wondering why should I even get it.
I -- at this point with what the market is doing is it's an opportunity to get back -- -- should you be running away.
I think in the short run assumption you back and in the longer and you better have a plan.
And that there's three major things that happen when you are planning for your retirement one.
You can determine how much you can save to -- be determined how much you wanna earn in retirement and three.
You planned for an investment rate of return now of those three.
Which ones are more in your control obviously how much you can save is in your control.
What you can expect to -- or take out in retirement is someone they can go to over -- -- -- right -- and then but the one that's least in your controls the rate of return.
So what I used to counsel my clients on was look you really need to.
Have a plan place that will require as list little risk in as little exposure as possible to get you there that -- you can sleep at night without having to overextend yourself.
Into an equity market which might be little volatile.
Let the tough stance because you have to take some risks to earn some money if you can't just say well I'm gonna be in treasuries for the rest of my like his.
There's a bubble building there that's gonna pop -- -- -- heard a lot of people.
You know the average -- 401K balance right now according to Fidelity every 5900 -- didn't end on who you talk to some people say it's less than man.
People mean more savings and an -- and in a market -- find a job it's hard set money aside what's your advice to people out there who are looking for ways to say.
Well first on that statistic I think one thing to noticed it usually doesn't take into account other retirement assets so we hope that people have virus -- aside as well.
But to answer the question -- what can people do to save.
You know it's really I'd hate to be such naysayers say you have to cut your expenses but.
If we're asking our federal government to cut expenses I think that we in our households need to really take a hard look at that.
And say you know what what's necessary and what's not necessary.
It -- -- saying pay yourself first to -- that we don't mean.
Buyer Manolo Blahnik -- typically know we mean set aside money in your retirement so they have money when you retire.
And that's the age old saying but how do we feel that how do you connect with that how do you actually know.
Quick and there's no fund there's no immediate gratification in saving today for thirty years out.
Except admit it gives you peace of mind that's that's the good news there are we found our silver lining -- okay.
Thank -- for I.
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