Protecting Your 401(k) in Market Downturns

Rebalancing, diversification, and strategies to weather crashes without panic selling

Market crashes are inevitable, but permanent damage to your retirement savings is not. The difference between investors who recover and those who suffer lasting harm comes down to preparation, allocation, and discipline.

Market Crashes Are Normal - and Temporary

Since 1950, the S&P 500 has experienced 10+ corrections of 20% or more. Every single one recovered. The average bear market lasts 14 months, while the average bull market lasts 4.4 years.

Asset Allocation by Age

Subtract your age from 110 for your stock percentage. A 40-year-old might target 70% stocks, 25% bonds, 5% stable value. Bonds cushion crashes while stocks drive long-term growth.