Market downturns are straight up not fun for a few reasons, but for those with 401(k)s approaching retirement, they are really not fun.

As you have probably heard, in the wake of tariffs the economy has been looking uglier than you as a baby (that glow up looks good though trust ;).

Let's talk before you decide that subsisting off the land is your best bet.

Even though 401(k)s may be suffering, it doesn't mean you shouldn't use them entirely.

The reason you invest should not be because stocks grow 100% of the time. They don't.

But they historically have grown consistently over the long-term, and a short-term drop is nothing compared to the long term growth of your wealth.

But what exactly is a...

A 401(k) is basically a workplace retirement account. You put money in now, your future self gets it later in retirement, after investment growth has treated you kindly. But what exactly does this look like?

When you are getting hired at a company, you will be given a lot of paperwork surrounding your "benefits." These benefits often can include healthcare, paid time off (PTO), bonuses, and your 401(k), in addition to just your pay. 

At a certain point in time you will be allowed to "enroll" in your company's 401(k) program, which means you can start to put money in your own 401(k). This account is

Note: You will probably have to select a set amount or percent of your income to invest on a monthly basis. General advice says you should invest at least to your employer matching program, but never invest more than you can safely afford.

This is a pretty great way to start investing if you haven't already. But there are ways to invest now that are similar to a 401(k). Check out...

Automated portfolios are investing accounts that act similar to a 401(k) in that all you need to do is deposit money into them. The investing is done for you.

A popular spot for automated portfolios is Wealthfront, which enables you to start investing with a $500 minimum (you can make smaller deposits after this initial deposit).

I like Wealthfront because

The downsides are

The fee is not a deal breaker. Again, I use Wealthfront and am pleased with the results. But fees are something you should remain conscious of because they are one ways companies/people will take advantage of your investment returns. 

Other companies that have solid automated investing options are Fidelity, Schwab, and Vanguard!

Again, I am not sponsored by any of these tools, I just use them.

Ask yourself: Do you want to be an autonomous investor (picking your own stocks, or index funds) or an automated investor.

I say autonomous, because in both situations you should be active and intentional with your money. Knowing where it is going and why.

Either way, the goal is the same: take one step closer to investing, and one step further from "Dang! Wish I had done this earlier."

Time is on your side, so take advantage of it. ;)

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