It is ironic that stock market volatility be cited as a reason to look at your 401k retirement saving account. The reality among most 401k investors, I believe, is that at times of extreme market volatility they do not even open their account statements! During the “Liquidity Crisis” of 2008 and the “Dot-Com Bubble” before it, the average investor saw their account values drop by as much as fifty percent. It is no wonder that they did not want to face opening their statements.
The financial industry mantra of “It is Not Timing the Market, It is Time in the Market” did not bring investors much comfort at the time. Measuring the movement of the S&P 500 Index, and by proxy, most 401k accounts, time in the market helped those who chose to “Stay the Course” recover from the breathtaking plummets in the market. Yet, to what end? Over the last ten years there has been no growth in an account that has been faithful to the buy and hold mantra.
If you think your account is different, perhaps you are selectively ignoring the contributions you and your employer have made during that time period. Add them up and back them out of your account balance and see where you stand. Granted this is not an accurate representation of how your account performed during the period because it does not take into account the time value of money that was periodically added to the account ~ but it will give you the general idea.
It is my opinion that stock market volatility is not the best reason to look at your 401k retirement savings account. You should establish, for yourself, your own investment policy statement which will guide you how to manage your own account through up, down and sideways markets. “Set-it-and-forget-it” is not an investment strategy. You already know this ~ or you should ~ if you are honest with yourself. Setting up such guidelines is one way how to save money fast ~ by not losing it in the first place.