No risk = No return holds for 401(k)s as well

People are feeling the pain that their 401(k)s have lost a ton of money in last year. Some are questioning if 401(k) plans with privately managed funds is even a good idea.

There are certain types of funds in 401(k) that never (almost never) lose money. They are called money market funds. They are no different than your savings accounts. But, who wants them? No one.. Everyone wants to invest in stocks (or) bonds..

In the long run, holding on your mutual funds, which probably lost more than 30% value in last year, is still a good idea.