How to protect 401K from a looming downturn?

If you're afraid of stocks, move into non-stock investments. If you're afraid of interest rates rising, move out of longer term bond investments and into shorter term ones. If you're REALLY afraid, move into cash instruments like a money market fund - but know that you're sacrificing return for safety. In the long term, diversification is always the best protection.

If you are actually concerned and as you approach retirement age you should be more concerned, take a percentage of your money and move it to CD's or money market accounts. They won't earn as much money but will be safe from downturn.

Age age 58 (4 years ago) I move 50-60% of my money into CD accounts knowing I would need it in a few years. At age 61 I moved all but 15% of my money out of the stock market. I can rest easy with a downturn knowing 85% of my money is safe.

Sit down with a financial professional. He/she can figure out the best options for the two of you. Going to cash/money markets is a mistake. You'll lose any significant return and miss the point when the market starts improving.

Good on you for being aware. Education is key. Annuities have really upgraded themselves. I sat down with one of the top brokers here in southern california and he was able to help my dad in protecting his accumulated assets. I can pass his info if you are interested. His company can help anyone in the US. He has helped me with my own finances and I trust him like a brother. He has helped many middle america families which would otherwise get passed over.

If you believe the market will continue in a downturn you should limit your exposure to stocks and put it into less risk investments.

pull out a portion of your bond allocation into money market until rates and market settle

Park you money in the money market option