Retirement Services

Underwritten by United of Omaha Life Insurance Company or Companion Life Insurance Company

How to Help 401(k) Participants During a Downturn

Employee Education (Fall 2015)

When participants in your company 401(k) come to you for advice during a market downturn, it’s helpful to refer them to professionally prepared resources.

During the downturn in late August, a number of reputable outlets in financial media immediately published helpful information and advice. The Motley Fool website, for example, posted an online article titled “Six Things You Should Know About a Stock Market Correction,” which is summarized below:

  1. Stock market corrections happen fairly often. Our last one was nearly 1,000 days ago, which was the third-longest stretch between corrections on record
  2. They rarely last long. Market fluctuations are inevitable and market corrections have historically lasted from just a few weeks to two quarters in duration
  3. We can’t predict the cause of stock market corrections. Real estate, interest rates, global occurrences, etc. can all have an impact on the stock market. The only predictable thing about market corrections is…they aren’t predictable
  4. Stock market corrections only matter if you’re a short-term trader. They shouldn’t be an issue if you stay focused on your long-term strategy and avoid the temptation to panic and pull assets out of your retirement account
  5. Market corrections can offer the option to buy high-quality stocks at a reduced price. For long-term investors, lower valuations during a correction could signal an opportunity to buy low
  6. This could be a good time to review your portfolio and reassess your holdings. You might determine it’s time to buy more of something, buy something new, or make some investment shifts
Also Helpful – Educational Materials on GetRetirementRight.com

You can also turn to getretirementright.com for help. It’s our own great go-to resource for 401(k) support, including a library of employee education material – downloadable fliers you can print or email to employees. “Stay the Course During Market Shifts” is especially helpful in today’s environment.

Employee Education Materials

Contact your Mutual of Omaha representative with any questions.

Questions? Please Call: (888) 917-7120