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Yahoo
05-05-2025
- Business
- Yahoo
Shaken by market volatility, 401(k) investors are fleeing US stocks — the 3 places they're moving money into
The U.S. stock market has always been a rollercoaster, but on some days lately, the ride has felt more like a freefall — and many retirement investors are panicking. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) March 2025 marked the busiest month for 401(k) trading activity since the early COVID-19 market crash in October 2020, according to Alight Solutions. Nearly half the days saw above-normal trading. The trigger? Possibly a perfect storm of market volatility, high interest rates, and political uncertainty tied to President Trump's latest economic policies. Faced with flashing red numbers on their screens, many 401(k) participants are yanking their money out of stocks and rushing toward what they hope are safer havens. But while the urge to protect your nest egg is understandable, following these jittery retirement savers might just set you up for even bigger losses later on. According to the latest Alight 401(k) Index, the flows were unmistakable. Outflows were primarily from U.S. large-cap stock funds and target-date retirement funds, typically the backbone of long-term portfolios. Meanwhile, inflows mainly surged into stable value funds, bond funds, and money market funds. Stable value funds were the biggest winners, pulling in about 40% of the month's trading inflows. Offered only in retirement plans, these funds contain high-quality short- to intermediate-term bonds and are designed with insurance wrap contracts to protect both principal and accumulated interest. This means upon withdrawal participants are guaranteed both even if the bonds in the fund declined in value. It's essentially the financial equivalent of crawling under the covers during a thunderstorm. 'It can be a good risk mitigator if you have already built your nest egg and you're trying to maintain it,' said Jania Stout, president of Prime Capital Retirement & Wellness, to CNBC about these assets. Younger investors are new to giant market swings and might panic, causing higher trading activity, Alight analyst Rob Austin told the National Association of Plan Advisors. 'It's the first time they see their 401(k)s decline. They pull it out to put it into something safe. Unfortunately, though, they did it now when stocks have already gone down, which is what we typically see. People don't get back into equities until after they've rebounded. So, it's buying high and selling low. That's really what's happening.' It's easy to see why. After years of steady gains, recent market shakiness can be alarming. Retirement accounts that once seemed untouchable are suddenly shrinking, and the idea of 'waiting it out' feels a lot harder when it's your future on the line. But in the rush for safety, many investors risk making a classic mistake: reacting emotionally and moving money to low-risk fixed income assets instead of thinking strategically. Read more: Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? When markets get rocky, the gut reaction is simple: Get out before things get worse. But history is pretty clear about the risks of trying to time the market. Investors who flee stocks during downturns don't just miss the worst days. They also often miss the best recovery days, those sudden rebounds that recoup losses and build long-term wealth. And missing even a few of those key days can kneecap your returns for years, if not decades. Consider this: If you missed the 10 best days in the market over the 20 years from Jan. 3, 2005 to Dec. 31, 2024, your returns would have been almost cut in half compared to a fully invested portfolio, according to J.P. Morgan Asset Management data cited by CNBC. Timing the market requires being right twice: once when you sell and once when you buy back in. And very few investors, professional or amateur, manage to pull it off consistently. Stable value funds have their place, especially for investors who are near retirement and can't afford major losses. But for anyone with more than five years until retirement, pulling too much out of stocks can actually increase the risk that you'll run out of money later on. 'Don't be fooled by investment risk and not consider inflation risk,' Austin said to CNBC. 'You might not see your account value go down, but inflation continues to be high: Will you outpace that enough to keep your portfolio growing?' Stocks, despite their volatility, have historically been the best way to outpace inflation and grow wealth over long periods. Giving up that growth potential too soon could mean smaller retirement income, fewer lifestyle choices, and a much harder road ahead. A popular rule of thumb says you should subtract your age from 110 to know how much of your portfolio should be in equities. Speak to your financial advisor about the right asset allocation for your age and financial goals. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead There's a 60% chance of a recession hitting the American economy this year — protect your retirement savings with these essential money moves ASAP (most of which you can complete in just minutes) This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
National Post
30-04-2025
- Business
- National Post
Modern Health Appoints Laura Dunn as Chief Commercial Officer
Article content Article content SAN FRANCISCO — Modern Health, a leading global workplace mental health platform, today announced the appointment of Laura Dunn as Chief Commercial Officer, effective immediately. A seasoned executive with nearly three decades of experience driving strategic growth, client retention, and operational excellence in human resources outsourcing and consulting, Dunn joins Modern Health to help scale the company's global presence and strengthen its market leadership. Article content Dunn most recently served as Executive Vice President at Alight Solutions, where she led a multi-billion-dollar strategic accounts organization, overseeing client relationships with some of the world's largest employers and driving significant growth and retention. Prior to that, she played a critical leadership role at Aon and Hewitt Associates, building and transforming client management strategies that resulted in industry-leading client satisfaction, retention, and revenue growth. Her ability to build high-performing teams that execute with excellence and deliver measurable impact has earned her industry-wide respect. Article content At Modern Health, Dunn will oversee the global revenue organization, including sales, customer success, marketing, revenue operations, and partnerships, with a focus on deepening client engagement, expanding strategic partnerships, and accelerating sustainable growth worldwide. Article content 'Laura brings the kind of strategic leadership and customer-centered mindset that's critical as we accelerate our mission to make mental health a true strength in the workplace—and she's joining us at a moment when that mission has never mattered more,' said Matt Levin, CEO of Modern Health. 'Having worked with Laura for many years, I know her relentless focus on delivering meaningful value for customers, paired with a deep understanding of business growth, will be critical as we broaden our global impact. We're excited to welcome her to Modern Health.' Article content Dunn holds a B.S. in Business (MIS/CIS) with honors from Indiana University and has completed international studies at the London School of Economics, HEC Paris, and the Koblenz School of Management. Article content 'Workplace mental health is one of the most urgent challenges facing HR and business leaders today,' said Laura Dunn. 'Organizations around the world are looking for trusted partners who can deliver both meaningful support for their people and measurable outcomes for their organizations. Modern Health has set the standard for doing both. I'm committed to forging trusted, lasting relationships with our clients and nurturing their success, ensuring we deliver impactful mental health solutions that meet their people at their point of need.' Article content Secure your spot at Modern Health's upcoming industry conference, Elevate Well-Being, on May 7, 2025—a global gathering of HR and benefits leaders focused on advancing the future of workforce mental health and well-being worldwide. Article content Visit Modern Health to learn more. Article content Modern Health is a global leader in adaptive mental health care, dynamically offering multi-modal mental health support that delivers meaningful outcomes at a sustainable, predictable cost. With therapy, psychiatry, coaching, community groups, self-guided tools, and crisis support, we dynamically create individualized care journeys to address a spectrum of mental health needs and preferences with culturally responsive providers in 200+ countries and territories and 80+ languages. Backed by peer-reviewed research and a proprietary blend of technology and live support, Modern Health delivers measurable outcomes, globally equitable access, and sustainable pricing. Our industry-leading Adaptive Care Model and dedicated, human-centered, operationally tuned, customer success partners make us a trusted partner for organizations worldwide. Article content Article content Article content Article content Article content Article content
National Post
24-04-2025
- Health
- National Post
Modern Health Appoints Alison Borland as Chief People and Strategy Officer
Article content Article content Modern Health, a leading global workplace mental health platform, today announced the appointment of Alison Borland as Chief People and Strategy Officer, effective immediately. A recognized industry thought leader, Borland brings more than two decades of executive experience in benefits, well-being, and strategic growth to Modern Health as the company continues to scale its global reach and impact. Article content Borland previously held roles including Executive Vice President and Chief Wellbeing Officer at Alight Solutions, where she played a pivotal role in guiding the company's enterprise strategy, building and managing teams, and working directly with HR leaders at client organizations, contributing to Alight's growth trajectory. She also held senior leadership roles at Hewitt Associates and Aon Hewitt, serves as an Advisor to the CEO of Wellist, and is widely recognized for her ability to bridge business strategy and vision to culture and people. Article content At Modern Health, Borland will oversee the company's people strategy and play a key role in driving forward strategic initiatives that enhance brand awareness, industry connectivity, organizational effectiveness, and global market leadership. Article content 'Alison brings a rare combination of deep industry expertise, strategic thinking, and authentic leadership,' said Matt Levin, CEO of Modern Health. 'Her track record of building high-performing teams and delivering on ambitious growth strategies is exceptional. As we accelerate our momentum, Alison's leadership will play a key role in scaling our impact, supporting our people, and advancing our mission to make mental health a strength and priority for every workforce we serve.' Article content Borland is widely respected for her advocacy and contributions to public policy and has advised institutions such as the U.S. Senate HELP Committee and the Department of Labor. She is a Fellow of the Society of Actuaries (expired) and graduated from Vanderbilt University. Article content 'I'm honored to join Modern Health at such a pivotal moment—not just for the company, but for the future of mental health care,' Borland said. 'Throughout my career, I've been deeply focused on creating meaningful, lasting impact by connecting innovative solutions with the real, everyday needs of people—across physical, financial, social, and emotional health. Modern Health's global reach and unwavering commitment to equitable access reflect a bold vision I'm excited to help advance. I look forward to working with the team to shape a strategy that deepens our impact, supports our people, and sets the foundation for long-term, sustainable growth.' Article content Secure your spot at Modern Health's upcoming industry conference, Elevate Well-Being, on May 7, 2025—a global gathering of HR and benefits leaders focused on advancing the future of workforce mental health and well-being worldwide. Article content Article content Modern Health is a global leader in adaptive mental health care, dynamically offering multi-modal mental health support that delivers meaningful outcomes at a sustainable, predictable cost. With therapy, psychiatry, coaching, community groups, self-guided tools, and crisis support, we dynamically create individualized care journeys to address a spectrum of mental health needs and preferences with culturally responsive providers in 200+ countries and territories and 80+ languages. Backed by peer-reviewed research and a proprietary blend of technology and live support, Modern Health delivers measurable outcomes, globally equitable access, and sustainable pricing. Our industry-leading Adaptive Care Model and dedicated, human-centered, operationally tuned, customer success partners make us a trusted partner for organizations worldwide. Article content Article content Article content Article content Article content
NBC News
15-04-2025
- Business
- NBC News
Cash may feel safe when stocks slide, but it has risks
Investors may feel an impulse to move to cash amid the recent tumult in the stock market. While cash might feel safer than stocks, it can also pose risks for long-term savers, financial advisors say. Cash — like money held in a high-yield bank savings account or a money market fund — is substantially less volatile than stocks over the short term, experts said. But cash has historically delivered lower returns than stocks over the long term. Holding on to more cash than you need — rather than investing it — raises the risk that you may not achieve your investing goals. The upshot: Cash-heavy investors may find it challenging to achieve their long-term investment goals, and may have to save more of their discretionary income as a result, Vanguard wrote in a paper that analyzed stock and cash returns. Investors fled stocks for perceived safe havens as U.S. stock benchmarks were whipsawed by tariff and trade proclamations from the Trump administration and retaliatory measures announced by major trade partners like China. Following a White House announcement of country-specific tariffs earlier this month, the S&P 500 had its worst two-day stretch since the early days of the Covid-19 pandemic, losing about 11%. Meanwhile, April 7 saw the highest volume of 401(k) plan trading since March 12, 2020, according to Alight Solutions, a retirement plan administrator. About 94% of proceeds moved to conservative assets like money market, bond and stable-value funds, according to Alight. The pros and cons of cash Cash does have some benefits. For instance, it's there when investors need money for emergencies and major purchases, even if there's an upheaval in the stock market, said Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida. 'Everyone should have some cash and some equities,' McClanahan, a member of CNBC's Financial Advisor Council, wrote in an email. But cash 'has a long history' of offering negative 'real' returns, meaning returns after accounting for inflation, according to Morningstar. In other words, consumers who hold a portfolio that's 100% in cash actually lose wealth over time after accounting for inflation, experts said. If interest rates on cash don't keep pace with rising prices, consumers lose purchasing power. Meanwhile, stocks have the potential for high growth, especially over the long term, but also come with risks, McClanahan said. 'The ups and downs of the markets can be nauseating, and you might have to bank losses if you need your money and can't ride out market downturns,' McClanahan said. 'Every portfolio should be diversified across safe and risky assets based on the client's financial and psychological ability to take risk,' she wrote. How to think of cash and stock mix Investors who are still in the 'accumulation' savings phase — i.e., people in their working years still saving a portion of their income — should hold enough cash for emergencies in a fund that's easily accessible, McClanahan said. They should also hold any cash they might need for purchases in the next five years, like a home down payment, car purchase or tuition expenses, she said. The rest should be allocated to stocks and bonds based on their time horizon, as well as their 'financial and psychological ability to take risk,' McClanahan said. For example, someone with 10 years to retirement should have a lower share of their portfolio in stocks relative to someone 30 years from retirement, she said. People in or near retirement, when they will need to start withdrawing money from their portfolio, should hold enough money in cash, short-term bonds and certificates of deposit to fund five years of income needs, plus any upcoming major purchases, McClanahan said. The rest should be in a diversified portfolio of fixed income and stocks, she said. Even retirees generally need to allocate some of their portfolio to stocks: They may lean on their portfolios to fund their lifestyle over three or more decades, meaning some investment growth is necessary to avoid running out of money, according to experts. All investors should have an investment strategy that spells out 'how much they will have allocated to equities, fixed income [bonds], and cash and they should stick with this investment poli
Yahoo
09-04-2025
- Business
- Yahoo
The market pummeled 401(k) accounts last week. Panic selling ensued.
Last week's tariff-induced market selloff ripped through 401(k) accounts, and over the weekend millions of savers and retirees took matters into their own hands. People pulled vast sums of 401(k) money from large US equity funds and target date funds and shifted to more conservative stable value, bond, and money market funds, according to Alight Solutions' 401(k) Index. Trading activity on Monday was almost 10 times an average day's volume, with investors fleeing stocks for the safety of fixed income funds, Rob Austin, head of thought leadership at Alight Solutions, told Yahoo Finance. It was the highest daily trading level since March 2020 when the pandemic hit. Why the Monday meltdown? Historically, when stock markets have large losses on Fridays, very high trading activity in 401(k) plans follows on Monday, Austin said. People react to the news by tweaking their portfolios over the weekend, but those changes don't get executed until the market reopens. 'The high volume isn't surprising as people tend to sell during market drops and buy back after rebounds, which leads to selling low and buying high,' he said. 'Saving for retirement is a marathon, not a sprint and a long-term approach to investing is generally wiser, even if it means enduring occasional downturns.' Tell that to stressed-out investors and savers. They were all over the map. 'Engagement with the markets was high among Schwab's retail clients last week,' Alex Coffey, senior trading and derivatives strategist at Charles Schwab, told Yahoo Finance. More clients bought equities than sold, Coffey said. But in terms of dollar amounts, clients were net sellers — meaning the amount of money behind selling transactions was bigger. In terms of individual names, there weren't many surprises. Nvidia was the most-bought stock, followed by Amazon, Apple, and Tesla. 'We also saw a lot of buying in index-tracking ETFs, perhaps as a volatility-driven alternative to investing in individual stocks where risk can be higher,' Coffey said. Lindsay Theodore, a certified financial planner at T. Rowe Price, said not all her clients reacted the same way. 'Some see the volatility as an opportunity to redeploy cash that had been sitting on the sideline,' she said. 'Others are worried and seeking validation that they're in the right investments and on the right track.' You can remind people again and again to sit on their hands instead of making big moves to jettison their stock holdings during economic turmoil and stock market volatility, but human nature often takes over. At TIAA, retirement participant calls and online account logins jumped nearly 30% since April 3 as retirement savers sought answers. 'Stay anchored' was the advice from Niladri 'Neel' Mukherjee, chief investment officer at TIAA Wealth Management. His advice: Stay diversified across equities, bonds and cash holdings according to your risk profile. Raise some cash if you need it for immediate purposes. However, he urged investors to balance the need to remain invested in equities for growth during retirement years. Maintaining a long-term perspective is critical even in retirement. That's the tried and true advice we always hear, and I am an advocate for that approach myself. Yet any time the markets flip out it seems inadequate, and this sudden downward shift feels different. Fidelity was unable to share up-to-date figures on outflows and inflows from 401(k) and IRA accounts since Thursday, but I did get some calming predictions that could soothe rattled nerves. "Market volatility may remain in the short term, but our outlook for US stocks remains positive," said Mike Scarsciotti, a certified financial planner in Fidelity's Capital Markets Strategy Group. A safe haven in the meantime: intermediate-term bonds, which can 'act as portfolio shock absorbers," he said. It's tough not to get twitchy and want to do something to take control of your retirement account when things take a turn for the worse. 'A dramatic emotional action like panicking and going all to cash and all to bonds is not a strategy,' Rob Williams, managing director of financial planning at Charles Schwab, told Yahoo Finance. 'We have seen increased calls with questions and concerns this week and increased angst,' he said. 'The tendency as an investor is to say, yes, I want to take cover.' A better response is to take 'ownership of your financial life,' Williams said. That doesn't mean 'set and forget it' or not pay attention. Have an investment plan based on how many years you have until you really need those funds in retirement. 'It can be very simple, but having a plan is an active move,' Williams said. Be aware of your emotions and concerns when there's uncertainty, he added, and create a plan you can stick to. That means if your time horizon is more than three or four years, you stick with the plan even through the turmoil, Williams said, 'continuing to save, continuing to invest, and rebalancing your portfolio once a year.' 'All of our studies show that people who have a financial plan tend to feel more confident or are looking for opportunities in a down market like this more than they are panicking or making emotional decisions that may end up not helping them in the long term,' he said. When you see in big red letters that your stocks are losing money, it's hard to not react, Benedict Guttman-Kenney, an assistant professor of finance at Rice University, told me. The common thinking: The stock market's falling, I want to get out before it falls further and I lose more money. 'But a fantastic way to lose money is to sell in a panic,' Guttman-Kenney said. 'It is a bit cheesy, but when I think of this behavior, I remember the Beatles' hit 'Let it Be.' That's what most people need to do, and it's very hard.' A valuable nugget to consider: If you're saving automatically in your employer-sponsored retirement plan, or you're making automatic contributions to a Roth IRA or a traditional IRA and are years from retirement, you're always investing in your retirement accounts regardless of whether markets are up or down. That evens out your returns over the long haul as you roll through the changing tides. Moreover, many retirement savers these days have their funds set aside in target-date retirement funds which automatically shift when the markets go haywire.'Target-date funds are a great solution for many retirees, especially 401(k) plan accounts," Schwab's Williams said. 'If you want a default solution, that's the right place to start. It will help you stay the course through dips and downturns like this because they rebalance your portfolio periodically.' And heed this message from Guttman-Kenney: 'The stock price movements over an hour, a day, a week, a month — those really shouldn't be affecting those long-run decisions,' he said. 'Do whatever kind of self-control mechanism works for you. Take a walk if that helps.' Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including "In Control at 50+: How to Succeed in the New World of Work" and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Sign in to access your portfolio
