401k Investments: 3 Options if Your 401k is Losing Value

When looking at your 401k investments, you may be faced with the reality that your portfolio is losing value. When this happens, you have a few different options that you could choose to pursue. Here are some options to look at if your 401k is losing value.

1. Stay the Course

The first option that you have is to simply do nothing. Many financial investors would recommend leaving your 401k investments alone over the long-term. Just because the current value of the investments may be down, does not mean that they will not eventually rebound. Therefore, if you leave the investments alone, they may eventually go back up again and be fine.

2. Choose New Securities

Your investment strategy might be sound but the individual securities that you are choosing to fulfill the strategy might be lacking. If you think that you have chosen the wrong stocks or mutual funds, you might consider keeping the same strategy but changing the individual securities. Do some research on securities and try to find suitable alternatives to invest in.

3. Reallocate

If you believe that you are using the wrong strategy, you may need to reallocate your resources. For example, you may want to lower your holdings in stocks and increase the amount of money that you have invested in mutual funds or bonds.

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