'Don't panic': Wealth advisers warn not to worry about retirement accounts

Published: Apr. 6, 2020 at 2:27 PM EDT
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Last week the stock market finished the week-long stretch down for the third time in four weeks.

While this is mostly attributed to the stranglehold the coronavirus has on the world, this sort of turbulent time in the markets is somewhat ordinary.

"There's a lot of people participating in 401k accounts who have not experienced it before, and it always seems like it is different no matter what it is," said Jamie Norvell a Wealth Management Advisor for Northwestern Mutual.

Norvell speaking from his Corbin offices says while the markets take a tumble this is in no means time to panic.

"The worst-case scenario is someone would take a total distribution from the 401K account," said Norvell. "Even though they may find their current account balances down in light of the economic environment and the market, we anticipate that to rebound."

While there is no guarantee that it will rebound this is a cycle that the markets often go through.

"Don't panic," Norvell reiterated.

When thinking about retirement and funds upon which to contribute or pull from, it is a longterm, four-quarter game.

"The 401K's and IRA's are meant to be long term investments," said Norvell.

Norvell says now is a time to talk with a financial advisor and understand better how your 401K works and is impacted by the markets ebb and flow.