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Your 401(k) plan is your primary source of retirement savings. In the past year, particularly the past few months, it has dropped in value almost 50%. Everything you read or hear tells you to “sit tight.” Almost every source of financial advice recommends not cashing out, and not replacing your equity assets with fixed income [...]

First, you always want to take advantage of any employer match—it is free money. For example, if the employer matches $.50 for each dollar you contribute, that’s like earning 50% after taxes for each matched dollar. Regardless of economic conditions, you should always contribute up to the amount that the employer will match.