The Fed isn’t your biggest worry. The central-bank decision that actually impacts your 401(k) lands in Tokyo.

Japan holds approximately 1.1 trillion dollars in U.S. Treasury securities, the second-largest foreign holder after China. The Bank of Japan has signaled a gradual reduction in its purchases of U.S. debt as it adjusts monetary policy. Changes in Treasury demand from major foreign holders can affect U.S. interest rates, which influence returns on bonds and other fixed-income investments held in 401(k) retirement accounts. The Federal Reserve's interest rate decisions and the Treasury market's overall dynamics both play roles in retirement portfolio performance.

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