The primary concern It is the likelihood of market losses because of a stock market crash or significant market downturn. The majority of people believe that when they start a 401K plan it will be the best method to secure their future. Incorrect. What an individual is doing is wagering in the stock market. It does not matter what phrases are used, mutual funds, index funds, a low risk portfolio or whatever your hard earned cash is inside the stock trading game. And also your financial resources are subject to every type of risk on the planet, to any world disaster, the debt turmoil, the real estate mess, political events, oil crisis you name it. And no matter what the scenario is your broker or investment advisor only has one interest in mind and that is to maintain your 401K and various other market investments in the market simply because they do not generate any earnings for themselves when your funds are not in the market. Consequently they will by no means advise you to move your stocks to cash instead they will “re-allocate” your funds to a conservative mixture yet still in the stock market. These investment individuals have nothing at risk you are the only one at risk. If there are market losses they will be yours.