What does this meltdown mean for my 401K?

EthanR answered one year ago …

There is no doubt that your 401k took a hit this week. However, since you are dollar cost averaging into it, the monies that you contribute (and are possibly matched by your employer?) to it in the next few weeks will go toward cheaper prices, and you will receive more shares. When the market does come back (as it always has over the last century), your new shares will do very well and your old shares will once again be where they were.

The other consideration is your time frame. If you are retiring within the next couple of years, perhaps you might want to go into something more diversified and/or conservative. But if you have a long time frame until retirement, I would not worry as much. But I do think a part of your 401k should not be in an aggressive growth fund, even if you are very young. Those funds usually do the worst when the market is declining.