Stocks take toll on 401(k) plans; local advisors say 'Don't panic'

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SPRINGFIELD, Mo. (KSPR) - For anyone with a retirement account, it's more than just stock numbers going down, but your money going down along with it.
However, one financial advisor says doesn't see the numbers in the red as a bad thing.

Dean Young, an advisor in Springfield, has been watching the numbers fall since Thursday night.

"I knew it was probably going to be a significant magnitude," said Young.

He says he's not worried.

"Panic is usually not a very good strategy," said Young.

When stocks are in the red, he tells people to put more money into the market, and buy up shares while they're cheaper. He says that's how you make money long term.

"If you're a younger person, particularly putting in money every paycheck into a 401(k), don't you want the market to go down while you're adding money to the market? You really want it to go up when you;re taking money out, many years from now," said Young.

Another way to make money off a down market, he suggests, is staying the course.

"In the last 20 years, you'd have almost eight times your money if you just waited out these things, even if you didn't add during that time period," said Young.

He says expect loses, but the key is reinvestment.

"Many stocks and mutual funds pay dividends. Just let them reinvest. If the prices come down you'll pay a lower price," said Young.

That way, he says, you don't stay in the red when stocks fall.

Financial advisors keeping watch are hoping this is just a small bump in the road before things turn around.