My 401k dropped precipitously. It’s heart wrenching to see several years of diligent savings wiped away. There are many bloggers that are in the same boat — e.g., Gather Little By Little, Paid Twice, My Two Dollars, Bible Money Matters, Financial Nut, etc. And it doesn’t take a genius to figure out that many of you are in a similar situation.
Many of us a asking questions like:
I hope we can have an open discussion about this topic so be sure to add your comment below.
Personally, I am keeping my contribution the same as it was before. If the stock market maintains its historical characteristics, then this is a great time to buy. Secondly, I haven’t rebalanced my portfolio yet, because my allocation is still within the targeted range. For some of you, this may be a good opportunity to rebalance to do more “buy low, sell high.”
The only change I have done is changing how my future contributions are invested (note: I am not moving existing money from equity to fixed-income). This Bear Market highlighted the need to have a bit more fixed-income to soften the impact of down market, and provide greater ability to rebalance money into equity investments.
In any case, I have no plan to pull out of the stock market at this point.
How about you, how is your 401k doing? And what are you doing or have done as a result of the financial crisis?