Don't Panic: A Guide to Managing Your 401K in Tough Times

No, it's not the apocalypse. 

But for many workers with the average $80,000 to $100,000 locked away in their 401K (or 403b) retirement accounts, today's 600-plus stock market drop sure feels close to being one. 

So to take the edge off a painful day for almost every investor on Earth, we asked , a certified financial planner at Mid-Atlantic Securities, to share five best practices for retirement account holders looking for a life raft to get them through the financial flood:

1. Don't Panic. If you didn’t have the acumen to move out of the market a week or two ago, then it certainly doesn’t make sense to do it now. Also if you sell-off now you have no chance to get back on the upswing. The money managers of the funds in your 401K or 403b will be doing everything they can to get back into positive territory. It's their job. 

2. There is an upside to everything. Even with Monday's market trouncing there is still opportunity for the savvy investor. For instance: if you were planning to move your 401K into a Roth IRA, do it now and save on transfer taxes while your balance is the lowest it's likely to be all year. 

3. Don't stop contributing. Historically speaking, after a broad sell-off like that on Monday, stocks will be up 15 to 20 percent six months down the road. 

4. Consider increasing your contribution. This might sound crazy considering the battering most retirement accounts have taken in the last few market sessions. However, one analogy applies here: When a supermarket slashes the price on a can of tuna fish, shoppers usually take the chance to grab a few more than they normally would. Same thing with stocks—now that they're cheaper, this might be the time to buy more of them while the asking price is lower. 

5. Keep up your spirits. The days when you could just rely on the market to go up, up and up are long over. Tough times call for increased focus, and that takes time—and energy.