401K not affected by Dow drop

By Evrod Cassimy – bio | email

RICHMOND, VA (WWBT) – This is the first time the stock market has seen a loss this big in the Dow in one day. Today it dropped almost 1,000 points and the reason behind it has to do with the market overseas in Greece.

"There's an awful lot of debt and when those problems arise they generally are contagious throughout Europe and come into the states," said stock expert, John Molster.

The drop was reportedly caused by a trader who mistyped an order to sell a large block of stock. Molster is the managing director at Scott and Stringfellow in Richmond. He doesn't believe the huge decrease is a reason to worry if you have money invested.

"There is a reason for them to have concern but there is not a reason for them to worry or necessarily take action," said Molster.

There's concern that the financial situation in Greece could continue to impact the U.S. economy. But if you have money invested in your company's 401k for example, there's still time for this to turn around.

"For some of my clients who certainly are older and are in retirement, you have to make sure that the people you are leaving your money to that you trust them and that they are doing what's right relative to your situation," said banker Paul Nolde.

Drops like this can happen but investors say overall it's wise to be invested in the market.

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