‘Every month I express my concerns to my adviser, but he says not to worry.’ My 401(k) has lost over 20% and I can’t afford to lose that kind of money. Is it time to find a new adviser?
Question: My 401(k) was doing ok for a while, but since January of this year it has been losing money that I can no longer afford to lose. I want to retire in a year and my 401(k) has lost over 20% and was not that large to begin with. Every month I express my concerns to my adviser, but he says not to worry and that it will bounce back. I do not see that happening anytime soon. What should I do? (Looking for a financial adviser? You can use this tool to get matched with a financial adviser who might meet your needs here.)
Answer: In general, a 20% loss for someone retiring in a year suggests the account may be invested too aggressively, says certified financial planner Daniel P. Forbes of Forbes Financial Planning, Inc. That said, certified financial planner Grace Yung of Midtown Financial points out that this is a midterm election year and historically, midterm election years are volatile due to uncertainty. “We have many other factors contributing to the current market action like high inflation, rising interest rates and geopolitical instability,” says Yung.
For those filing a tax return for the first time, the key to creating a successful tax plan is gathering as much information as possible, including all relevant personal tax documents and the resources to put the return together mistake-free. For more information on filing, check out the article below by Daniel Forbes CFP® featured by the CFP® Board on the blog Let’s Make A Plan.
Financial planners are investing in FinTech, or financial technologies, to stay on top of real-time data and the changing communication space. Dan was recently asked by Investor's Business Daily to contribute to an article on the topic.
Working with a financial planner is a relationship formed above and beyond investment performance. Dan contributed to the CFP Board's Let's Make a Plan blog to talk about how to evaluate one of the most important relationships you have