Getting Back on Track with your 401k might seem harder than it actually is. You basically have three options.
SAVE MORE
In this difficult economic time with jobs uncertain and pay cuts almost certain it seems a natural time to reduce or stop 401k contributions. This is not a good idea, the clock continues to tick regardless of current economic times and before you know it, retirement will be here. Make it a habit to increase your deferral AT LEAST ANNUALLY by 1%, you will hardly notice any difference in your pay today but you will notice a big difference at retirement
RISK MORE
As a general rule If you are under age 50 this is a very good option. With the stock market at it's current level this is a GREAT TIME to be buying stocks if you have 15 or 20 years until retirement. If you are over age 50 this is a GREAT TIME to re-evaluate your current portfolio and consider reducing your exposure to stocks when the market is up.
WORK MORE.
If your retirement date is near, you might consider putting off retirement for a few more years.
If you are years from retirement you should reconsider your thoughts of when retirement should begin 65, 70 or beyond. With life expectancies increasing and certain higher taxes and inflation. It is no longer reasonable to consider retirement before age 65. Now that does not mean working 40 - 50 hours a week until age 70 it means continuing some form of less strenuous and more enjoyable work in your later years.
Getting My 401k Back on Track