If your employer is a retirement plan sponsor that offers access to a 401(k) plan, you should be taking advantage of it to save for retirement. 401(k)s offer significant advantages to workers, such as the ability to save on a tax-deferred basis and often, employer savings matches. However, most workers today will change jobs several times during their careers.
A basic principle of investing is the efficient markets hypothesis, which states that investors are rational and will make logical investment decisions that aren’t based on emotion. If that is true, however, how can we explain market crashes, like the financial crisis in 2008, or the market crash in 1987, or even the crash in 1929?