Opportunities to make up losses
While most investors are aware that having a diverse investment portfolio in terms of stocks, bonds and mutual funds is important, there are many other investments that are equally essential.
Real estate, peer-to-peer loans, and crowdfunding investments can fill the gaps that may exist because of a 401(k) loss and will help ensure robust returns.
It’s also important to take advantage of the one kind of stock that often provides a net positive return, dividend stocks. While the price of dividend-paying stocks may rise and fall with the market, the cash dividend you receive will always be a gain.
While there’s no real way to avoid market fluctuations, careful planning, and rational decision-making can limit the impact they have on your investments.