I just calculated that my 401K has fallen 13% since it’s highest point in November of last year. Which has made my net worth drop 5.5%.

It’s melting….!!!

Is there anything I can do other than to wait it out? Do I cut my losses? Move what’s left into less risky funds? Ride it out, and keep my fingers crossed that the market rebounds soon?

I’m still living with painful memories of the last major market drop in 2000. During that recession my 401K declined 1/3 of its original value.

What to do, what to do?

Well, I took a sip of my coffee, and did what I always do: I started googling the topic. And, amidst the gobble-de-gook, I found some not very encouraging articles:

• Toughing Out the Markets Ups and Downs
• Don’t let chatter about the current economic climate color your long- or short-term investment decisions
• High Anxiety For 401(k) Investors

Here’s my favorite:
Is It Just Me, or Is The World Ending?

Now if you’re in your 20’s, or even your 30’s, articles such as these are probably not even coming up on your radar. However, if you’re a baby boomer like me,are you feeling maybe just a tad irritated at the business geniuses who decided to move the retirement system of the middle class/poor from pensions/social security to the 401K system? A system where we now need to make decisions for our retirement that most of us are not qualified to make? Or we could trust someone else to decide whether or not we’ll need to work during retirement. Because that’s what it all boils down to really, doesn’t it?

Am I starting to sound bitter?
(Breathe, Lisa)

After much (I mean a lot) of positive self talk, I managed to switch my gears. It’s all perspective, after all. And being smart. Historically, the stock market, just like the housing market, always comes back. And I have 12-15 years for that to happen.
So, rather than continue down this dismally depressing road, I’m starting to put some positive energy into the whole thing. And when I put positive energy into it, I found some encouraging articles.

Then I came up with a short list of things I can do to improve my situation:

Search out a good financial planner for advice- I am currently asking friends and colleagues about local financial planners who don’t have a vested interest in selling a particular investment product.

Investigate the “auto-rebalancing” feature on my 401k- I’ve heard pros and cons on this, but mostly pros. Anyone out there have any thoughts on it?

Increase my knowledge of the stock market and retirement plans-
To start, here are some of those articles I’ve found:

• Protect Your 401K in Turbulent Times
• When It Comes To Rebalancing, a Little Means a Lot
• An Alternative to Annuities For Retirees Seeking Income
• Retirement Made Easy, Sort Of

Keep saving, and be patient- The worst thing I could do right now would be to stop my 401K deposits.

I’m feeling better already. I think. Anyone else out there have any thoughts on the matter?

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