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Jan 30 2009 12:00AM



I am 30 years old and enrolled in a 401(k) retirement plan. I am investing in a very aggressive asset allocation fund and recently raised my contribution from 10 percent to 12 percent. I seem to be losing every dollar I contribute. Would it be wise to move to a moderately aggressive asset allocation fund? I know history says I will gain the money back years down the line, but it is scary seeing thousands of dollars I contribute disappear. What are your thoughts?


"I think there are two items you need to consider," said FPA member Matthew Kelley, CFP®, AIF®, founder of Gold Medal Waters. "First, what is your time frame? If your need to use these assets in retirement or some period of time down the road, say five years or greater, then you do not need to look at this daily. Check your account every couple of years. Second, if emotionally, you cannot stop checking your account every day, then my guess is that you are invested too aggressively. You want your investments to match your risk level so you don't make the 'great mistake,' which is selling investments at a market low, such as where we are now."


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