Yes I am concerned about the investments as everyone else in a 401k should be. Since most plans use mutual funds they are most likely being hit right now by the lowering market.

Having said that, how much a person worries should be based on not only what is happening today but their plan design and their age.

If a person is young and has many years to retirement a good lesson to learn is that the market goes up and down. Your retirement plan is long term and when the market goes down you keep deferring to buy low.

Another consideration is your employer match if you get one. If the market is turning $100 into $75 in your account right now but you get a 100% match for every dollar you put in up to 3% of your salary, that is still a great deal for you most likely, so be careful not to forget about that.

Also, be careful that you don't pull everything back to "cash" without thinking about it. You will either be a hero or a goat if you do. Many people who moved to cash in the last downturn were happy while others did it too late and missed a big part of the recovery. Consistent investment in a range of investments is usually best. Having said that, who knows where we are headed? A financial adviser is a good idea in such times (but they don't know for sure either).

I am not moving that money elsewhere not am I changing my deferrals. I do think other investments outside of the plan make sense, however.

I am not too concerned about what is currently happening with the credit downgrade or the economy. This is because about six months ago, I changed from a high-risk investment fund to a fund much like a money-market account. There should be little, if any, losses on it.

When the stock market took a nose-dive a few years ago, we had lost tens of thousands of dollars in my husband's annuity. It took nearly three years to get it back up to what it was, and this is including quarterly contributions that are over a thousand a quarter.

Once it got back up, I quickly called the administrator and put the money in the lowest-risk fund available. The administrator began to send us letters informing us that we were not being aggressive enough for retirement. Give me a break. I shudder to think how much money we would have lost in just the past few weeks.

When the economy gets back onto its feet, and when the uncertainty goes away, I will change the fund back to what it was prior to the change.

While I in no way consider myself a stock-market genius or even claim to understand economics, I do realize that, at this point in time, a low-risk fund is best for any sort of retirement account.