It happened. The Dow Jones Industrial Average, after riding high, had its first down January in four years. As the news spread, investors began to worry. And by investors, I mean you, me and anyone else with a 401K or retirement plan.
It wasn't so long ago that hard-working folks watched their retirement savings take a big hit. So any drop, especially one that is so big and happens so quickly, is going to bring back bad memories.
"People are permanently scarred. We still have pain from the head-on collision that happened in 2007 and 2008," said Wes Moss, a financial adviser who writes about these very topics for the Bargain Hunter blog. But while every correction may bring a new set of fears, it is important to remember that it is just that -- a correction.
"We are all so much better off experiencing a pullback or a correction," Moss says. "A 5, 10 or 15 percent pullback is a great opportunity for investors." Why? Because no one wants to buy stocks when prices are sky high. That's why.
If you're between the ages of 20 to 60, these corrections -- which, in this case, was attributed to emerging markets -- should have minimal impact on your retirement funds, he said.