Connecticut residents fear 588-point Dow drop will hit 401(k)s

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HARTFORD – As the Dow dove 1,000 points early Monday and then fluctuated throughout the day, reactions from Connecticut citizens were also all over the map.

"If I had to draw money out now it would be a horrible thing. What I'm going to try and do it wait out,” Leif Fellinger, from Simsbury, said.

Sheila Roderick from Ellington said she and her husband carefully watched the market after last week’s wild ride with the Dow finishing more than 500 points down on Friday.

"We're worried. I mean, I think a lot of people are overreacting but it certainly is a concern and we're watching it,” Roderick said.

Investment experts say it is too soon for people to panic about their IRAs and 401(k)s.

"If you're looking out at least five years or longer than you can ride out the market cycles,” Quinnipiac finance professor Dr. Bob Porter said.

"Someone close to retirement should not have a lot of money in the equity market,” Porter cautioned.

Porter said that investors should take the long view when it comes to their retirement funds. He added that global economic instability is contributing to the volatility in the market and it is unclear when that could end.

"How bad really is the Chinese economy? How much of a negative impact is Greece going to have on the European Union? And in the U.S., is the Federal Reserve going to start raising interest rates? These are all uncertainties,” Porter said.