Your Investments Are Not FDIC-Insured
If things go wrong in your 401(k), don’t expect the Federal Deposit Insurance Corp. to step in. The vast majority of 401(k) investments are not FDIC-insured, with the possible exception of certain bank products.
Your mutual fund buckets — including stocks, bonds, precious metals and international securities — are subject to market fluctuations like any other investment. Just because the plan is offered by your employer and promoted as a long-term retirement plan doesn’t mean it’s backed by the kind of insurance that protects bank accounts.
