Thinking about your 401(k) this year may mean preparing for a market downturn, perhaps inflation. The best strategy is to have the appropriate mix of stocks, bonds and cash and to periodically rebalance your investments. You might also want to consider the advice of these experts who say adding commodities or real estate can help diversify and hedge against inflation.
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Art Hogan, chief market strategist, Jefferies Asset Management
—Protect against inflation by considering a commodity equity exchange traded fund such as Jefferies CRB Global Commodity ETF (CRBQ).
—Look at mutual funds with companies in the industrial, materials and energy sectors because they, too, will do well during inflation. Examples include metals, agriculture and energy companies.
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Alan Skrainka, chief market strategist, Edward Jones
There are three important things to remember when investing for retirement:
1. Hold quality investments.
2. Diversify broadly.
3. Hold for the long term.
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Dean Kohmann, vice president of 401(k) plan services at Charles Schwab & Co. Inc.
—Consider a target date fund because it automatically rebalance your portfolio based on how close you are to retirement.
—Consider rebalancing your account quarterly rather than once a year if you’re concerned about volatility.
