Welcome to today’s podcast! With the stock market resembling a rollercoaster lately, many of us are feeling a bit uneasy about our 401(k)s. So, how worried should we really be? Ronald Premuroso from Western Governors University sheds some light on this topic.

First off, what exactly is a 401(k)? It’s a retirement savings plan offered by employers where employees can contribute pre-tax income. This means your money grows tax-deferred until you withdraw it, which is a significant advantage for saving.

But what happens when the market dips? While fluctuations can cause anxiety, it's important to remember that 401(k)s are designed for the long term. As Premuroso explains, “Market dips are normal, and it’s crucial not to panic.” With the right approach, these downturns may not be as damaging as they seem.

Now, if you’re thinking about withdrawals, keep in mind that the IRS requires you to start taking distributions at age 73. If you withdraw early, you could face penalties, making it wise to think twice.

In summary, while the volatility can be unsettling, staying informed and focused on the long game is key. Remember, a 401(k) is a tool for your future, so keep your eyes on that retirement horizon!
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