I’m 25 years old and have a 401k, Roth 401k, and Roth IRA. With the recent events in the stock market, should I increase/decrease/continue my contributions to these plans? Why?
Today my stocks went up 5%; yesterday down 5%. Keep it the same for oneyear. This market is too crazy.
Today my stocks went up 5%; yesterday down 5%. Keep it the same for oneyear. This market is too crazy.
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I would continue buying because you accumulate more from the low stocks and they will eventually increase in value.This is a good long term strategy. It’s called dollar cost averaging buying more stocks over time when they are low.
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Always increase purchases in a falling market. You get more shares for less money. You want to accumulate as much as possible while you’re young so when you’re old like me you can relax (I’m 42). Reinvest dividends too. i hope the market loses 10% more before it starts back up.
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When the stock market "crashes" or has a major correction down this is the time to buy buy buy. Think of it this way, the stocks are on "sale" just like in the stores when you see a red “sale!” or “clearance!” sign, when you see the red arrows on the BIG BOARD it is time to get a good deal.
I also think that we are going to go in to a depression soon. I do not see the economy getting better for a few years. Yes I did say depression not a recession.
Keep your contribution to your 401K the same or a little more. You have the rest of your life to accumulate wealth. You are well on your way to retiring in a very good financial position.
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Me
I would tend to reduce the contributions to zero in one of the retirement accounts, At your age the best thing is to invest a definite amount every year in line with your income. As your income increases, your contribution should also increase. The market goes down you get more bang for the buck. As the prices increase, you will get less for the dollar.At the end you will have dollar averaged your cost.This is in essence a forced savings account. I would also suggest that you have a vehicle for ready cash. You do not want to be in a position of having to dispose of some of your holdings in a down market.
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At 85 seen rises and falls in the market. So long as you do not have to liquidate, everything is fine.