Although the stock market is holding steady - the debt ceiling battle could change that. KTRH Money Man Pat Shinn says a deal could easily come at the last minute - but the worth of your 401(k) depends upon which side you're on. After all - a 401(k) is a long term investment. He says your 401(k) should be ok - especially if you're still putting money into it. If the market dips you can buy more stock. "When you're in the accumulation phase - when you're having money taken from your paycheck every week and put into your 401(k), market drops are opportunities to buy more stock with the same amount of money."
Shinn concludes the best thing that a retiree who is drawing income from their 401(k) is to not have all their money in the stock market. If you're already retired Shinn gives this advice. "You don't want to sell stocks when the prices are low. Don't have all your money in the stock market. You want to have the money that you use as income to be in something that will give you interest!"
He sums it up saying it may be settled in the last minutes - but as a long term investor, that's ok.
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Debt Ceiling - how will it affect your 401(k)?Photo: Getty Images