What Happens If The Stock Market Crashes? Is Your Money Safe??

what happens if the stock market crashes

There are way too many people in this world that blindly contribute to their 401k and then pray that it’ll grow into something that they can retire on. Does this sound like a good plan to you? What happens if the stock market crashes? Do you think your 401k money (that’s invested in the stock market…) is safe?

What Happens If The Stock Market Crashes? Is Your Money Safe?

The short answer is…. of course not. No invested money is guaranteed safety. If you are invested heavily in your 401k and the overall stock market tanks, you’re headed down with the ship.

To show you what I mean, let’s take a look at the market crash of 2008.

The average 401k account balance was $75,791 in 2006, then $78,411 in 2007, and then…..OUCH…. just $56,030 in 2008. In one year the average 401k balance went down by nearly 30%! Like . . . → Read More: What Happens If The Stock Market Crashes? Is Your Money Safe??