Should a long term investor continue putting money in a 401K?
Should an investor with a 401K plan continue to leave the money invested in good mutual funds or switch new funds to a money market?
Best Answer
4085 points
EthanR answered one year ago …
Ask yourself why you are posing this question right now. The most likely answer is fear of losing more money. That should tell you, as AlanJ says that the bottom is probably near. People become the most fearful and the most likely to either sell or get totally into cash near or at the bottom.
The remainder of AlanJ's answer is the correct one, so I won't add to that.
Answers
2082 points
alanj answered one year ago …
Keep investing. Especially now that the markets are cheap. This will lower the average cost of your funds. And we are probably getting close to the bottom. If not, that means your funds are getting cheaper to invest in. And when the markets turn around (and they eventually will) you'll make out like a bandit.
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David answered one year ago …
Keep investing at least up to the amount to get employer's maximum match (free money). Just watch asset allocation within the plan and take as little risk as possible right now (i.e. money market funds,etc.)
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moihyvong answered one year ago …
Keep investing to maximizing your employer's match. Then manage your funds, if you can, within the plan that best suits your priority (safety, not losing the value in a long run)
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