Plunging stocks, recession fears: Here's what to do — and not do — with your 401(k)

on the horizon. For millions of Americans saving for retirement, the economic turmoil has raised some big questions: Should they sell investments or stay the route?

"Riding out market downturns is a good rule of thumb," Amy Richardson, a certified financial planner with Schwab Intelligent Portfolios Premium, told CBS MoneyWatch."It's nearly impossible to try and time the markets, so it's important to have a strategy and remain clear about your personal financial goals."Don't try to time the market

The Federal Reserve's interest rate hikes are providing better returns to savings accounts and certificates of deposit , but they still trail far behind the rate of inflation. For instance, a one-year CD now offers a monthly yield of about 1.5%, up from about 0.7% in March, according to Ken Tumin of DepositAccounts.com. But in May, inflationThat might still

After that, the most effective strategy was one where an investor socked away money at the start of the year, followed by an approach called"dollar-cost averaging," or investing a set amount of money on a regular basis, such as monthly or with each paycheck. In other words, how most people invest in their 401s.

through the Treasury Department, or via their bank or broker. But an investor can only buy $10,000 worth of TIPS annually for each account, which limits the amount of inflation protection they can offer. How long does a bear market last?to go from peak to trough and 27 months to return to breakeven. The S&P 500 index plunged an average of 33% during bear markets in that period. The biggest decline occurred in the 2007-2009 slump, when the S&P 500 fell 57%.

some of us saw this coming and prepared for it some time ago

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