How to Protect Your 401(k) from the Falling Dollar
- 1). Contact your 401(k) plan administrator. Ask the representative to tell you about the different funds available for selection. If you are close to retirement age, ask specifically for conservative international bond funds. If you are not close to retirement or have an aggressive outlook, ask for international stock funds. To protect yourself from investing entirely in stocks held in one currency type such as the euro, ask for information on a fund that contains stocks or bonds from several parts of the world.
- 2). Tell the representative to transfer your existing 401(k) holdings into the international fund that best suits your needs. Ask the representative to change your future election selection so that all future contributions buy shares in the same fund.
- 3). Check your confirmation statement. The 401(k) custodian will send you a confirmation statement reflecting your account changes within five to seven days. Review the statement to ensure accuracy.
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