Saturday, November 1, 2008

What About 401k's In This Economy?

From The Budgeting Babe website.

Should I reduce my 401k contribution while the economy tanks?

I'm currently putting 10% of my salary into my 401k. Given how craptacular the stock market is doing right now, and that my fund is actually going down instead of up and hasn't made any money this year - has actually been steadily losing money - would it make sense to lower my contribution to 5% until the storm has passed? I mean, I won't be taking anything out that's already in the account but right now it seems like I'm literally throwing my money away.

Read the answers to this question in the comment section of this post.

1 comment:

Anonymous said...

A positive spin on current investing is instead of looking at losing money this year, you can view it as buying at basement prices. In otherwords you're getting a bigger bang for you buck. This is also assuming you have time to ride out the storm. If you're closer to retirement then I would agree with the idea of pursuing other means of investing (ie. the other side of the mattress).

"Simplicity of living, if deliberately chosen, implies a compassionate approach to life. It means that we are choosing to live our daily lives with some degree of conscious appreciation of the condition of the rest of the world." Duane Elgin

"Do what is good with your own hands, so that you might earn something to give to the needy." Ephesians 4:28