How to protect your 401(k) during the Coronavirus-driven market crash

The video provides guidance on protecting 401K and retirement savings during market downturns. It emphasizes not panicking and maintaining regular contributions, as well as the importance of asset allocation and diversification. Viewers are advised to keep cash reserves for emergencies and consider short-term investments if nearing retirement. Strategies for those close to or in retirement include working longer or part-time to preserve assets.

What is the recommended action for most retirement savers during market downturns?

• Stop contributing to retirement accounts

• Leave investments as they are

• Withdraw all investments immediately

• Invest in high-risk stocks

Why might some investors see market drops as opportunities?

• To sell off their assets quickly

• To buy equities at lower prices

• To switch to a different retirement plan

• To avoid paying taxes

What should you do if you haven't reviewed your asset allocation recently?

• Ignore it until the market stabilizes

• Invest heavily in one asset class

• Ensure it aligns with your age and risk tolerance

• Switch all assets to cash

What is a recommended component of a diversified portfolio?

• Only cash

• A mix of stocks, bonds, and cash

• Only bonds

• Only stocks

How much cash do financial planners recommend keeping for emergencies?

• One month of living expenses

• Twelve months of living expenses

• Three months of living expenses

• Six months of living expenses