Should I stop funding my 401k?
Answers
957 points
CUWu answered one year ago …
Short answer: NO WAY!
Keep funding your 401k if you can afford to do so.
It's good to get in the habit of constantly adding money to the market. What you might end up doing is lowering your cost basis on a lot of the funds/positions you own in the 401k. That means a much higher return when this market bounces back.
So unless your free is that the White House will have a "Going out of Business" sign on its front door next week, then you shouldn't worry about continuing to put money back into the market.
Buffett's putting stock into his personal account right now -- a first in a long time for this man. That makes me feel very comfortable right now.
945 points
jillybeansisme answered one year ago …
I agree with CuWu with an exception . . . if what your 401K offers as investments is just complete yuk, then put your investment into the money market. At least that way you get your company match and don't loe
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104 points
dandb43 answered one year ago …
If you believe in the American economy you know that this too will pass and by continued funding of your 401 at these low prices will reap the rewards of perseverance and patience.
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alanj answered one year ago …
Absolutely NOT.(Unless you're having a difficult time with your day to day living expenses) Even if it's a money market. Anything that you put into a 401k is tax deferred. And if your boss is also contributing all the better. Any quality stock, ETF, or mutual fund that has lost value especially lots of value you will be buying at a discount. Don't look at the market in dispair, look at it as opportunity. Here's a fact I heard on the financial segment of either CNBC or FOX NEWS. The DOW has never been down in any 20 period. If the markets are making you nervous than either quit looking at your 401k or move your funds into a money market within your 401k and wait for the trend to change to an uptrend and then get back in. But, whatever you do KEEP CONTRIBUTING.
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2224 points
readytoretire answered one year ago …
Several years from now, people who invested now will be smiling as those who didn't complain about how they missed the big runup. That said, it still hurts when the market goes down 400-500 a day. The best part about investing in a 401k is the use of dollar cost averaging due to the periodic investments. Take the tax credit and put your money in good stocks/funds and be patient.
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