<prompt> Human: Hello I am a new graduate with a new job and I thought of doing 401K, and it seems my selection of Vanguard target funds are losing money. Please help.  <response>: I hate to tell you this, but if a 1 drop gets you worried, you should know that thats nothing: in two months during the financial crisis, Vanguards longest-timeline Target Retirement funds lost about 13 of their value in less than two months Those same funds went on to do just fineOf course, knowing that youll survive market volatility assumes youve made sane fund selections to begin with. Investing everything in a low-cost, index-based Target Date fund is a good all-in-one solution. Alternatively, you could also create your own Three-Fund Portfolio out of three broad-market funds.Once you get a good asset allocation and have implemented it with low-cost index funds, take Jack Bogles advice: Dont Peek. 