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.
Common questions about 401k
Many of us a asking questions like:
- Should I continue to invest in my 401k?
- Should i still invest in my 401k?
- Should i still contribute to my 401k?
- Should I take out my 401k?
- Should i take my money out of my 401k?
I hope we can have an open discussion about this topic so be sure to add your comment below.
Keeping my 401k investing plan the same
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?
Pinyo is the owner of Moolanomy Personal Finance and a Realtor® licensed in Virginia and Maryland. Over the past 20 years, Pinyo has enjoyed a diverse career as an investor, entrepreneur, business executive, educator, financial literacy author, and Realtor®.