Stock Market Woes Starting to Worry 401k Holders

Should the current state of the financial markets have you be worried about your retirement savings?
2:17 | 01/16/16

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Transcript for Stock Market Woes Starting to Worry 401k Holders
Let's furnish to the wild ride on Wall Street. So many people very nervous about their 401(k)s this morning. ABC news chief business and economics correspondent Rebecca Jarvis is here to break it all down. They're calling this the worst start to a new year ever. What's behind this all? It's looking really bad, Cecilia, a lot of people looking at the markets are seeing another big hit. The market fell another 400 points on Friday ahead of a long weekend for Wall Street. That is a loss of more than 8% so far for this year. Now, part of the blame here is oil. Oil closed at $29.42 a barrel. That is the lowest level for oil prices in 12 years. Now, from a consumer standpoint you're benefiting because you're paying less at the pump but the issue is all the energy companies in this company. Their profits are getting eaten into and for people who have jobs in the oil and gas industry right now, this is a big concern. Because their jobs are now looking like they are at risk. Some of them have even been lost already. There is also China. China's markets are causing big fears here because their markets are down 20% from the December highs they have been getting hit time and time begin, Cecilia, and what we've seen over and over again this year when China's markets tank, ours do too. What is happening with people's 401(k)s, so many saying what do I do? A lot of white knuckle days for those retirees especially. The average 401(k) Of $92,000 has already lost about $7500 in value since the beginning of this year. The unsatisfying answer is the accurate answer. The one people hear time and time in these environments of down market days. Unfortunately, riding it out steps to be the best option. If you rode out the great recession, if you didn't sell on those terrible down market days your portfolio is up, in fact, the stock market in the last five years has returned massive amounts to investors so in a larger context, Cecilia, it's looking a lot better over time. Long-term, don't panic. Not easy to do. Hard to do but that's the answer. Having a cushion set aside is important too especially if you're a retiree. You don't want all your money in the stock market. Great advice possibly a buying opportunity, Rebecca, thank you.

This transcript has been automatically generated and may not be 100% accurate.

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