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Just last week, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite had undergone a peak-to-valley pullback of 30% since mid-February. That's nearly a third off the highs from only 30 trading days ago.
And it's a fast drop that's affecting just about everyone's bank account.
Sure, stocks have risen since then. But we could still go down from here… even further than we already have.
Friends of mine are starting to call their 401(k)s 201(k)s – and they're all asking me the same thing:
What will I do now?
My go-to answer here would be to trade.
But most people can't trade their 401(k)s, depending on who they're administered by.
So the next step would be to call your financial advisor – and ask them these three questions…
Three Things to Know About Your Financial Advisor
1. How are you paid?
If your financial advisor is flat-fee based, that's good news. It means they aren't getting paid based on how much you make or how often they change out products or securities in your account.
Sometimes there’s a conflict when that advisor is incentivized on transactions. There are occasional cases of churning – excessive trading to generate commissions. Hopefully most of you have a great relationship with your advisor and have built trust over many years.
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.