Comments on: Should I reduce my 401k contribution while the economy tanks? http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/ A personal finance blog for career minded women with small budgets and big dreams. Wed, 09 May 2012 23:42:27 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anonymous http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3305 Anonymous Thu, 05 Mar 2009 00:15:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3305 What if you've left your money in the market and you've lost it all? Is is possible to have a negative amount and when the market rebounds you will gain it all back and then some more? What if you’ve left your money in the market and you’ve lost it all? Is is possible to have a negative amount and when the market rebounds you will gain it all back and then some more?

]]> By: Michael http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3293 Michael Thu, 26 Feb 2009 08:44:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3293 One point I would add to what has been said, is a slightly different way to frame the question. Simply ask yourself, "Do I think that my investments will be in good shape when I need to access them?" <br/><br/>In your case, because you have at least 30 years before you'll access your retirement investments, how do you think they'll be? That said, with all that time ahead of you, why not continue while shares are on sale?<br/><br/>It's just like the current housing market: horrible time to sell, but an extremely good time to buy. One point I would add to what has been said, is a slightly different way to frame the question. Simply ask yourself, “Do I think that my investments will be in good shape when I need to access them?”

In your case, because you have at least 30 years before you’ll access your retirement investments, how do you think they’ll be? That said, with all that time ahead of you, why not continue while shares are on sale?

It’s just like the current housing market: horrible time to sell, but an extremely good time to buy.

]]> By: Eddie http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3220 Eddie Thu, 08 Jan 2009 16:45:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3220 Why is it that buy high and sell low only makes sense when it comes to the stock market?<br/><br/>Max out your contribution this year and reduce it to the company match when the market recovers and is strong. <br/><br/>Do you really need to ask this question, as a PF blogger? Amateur! Why is it that buy high and sell low only makes sense when it comes to the stock market?

Max out your contribution this year and reduce it to the company match when the market recovers and is strong.

Do you really need to ask this question, as a PF blogger? Amateur!

]]> By: Vive...rie...ama http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3146 Vive...rie...ama Sat, 25 Oct 2008 23:19:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3146 Hi cuz! I say leave it in or increase it:). Stocks are cheap now!!! Hi cuz! I say leave it in or increase it:). Stocks are cheap now!!!

]]> By: Luna http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3137 Luna Sat, 18 Oct 2008 00:07:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3137 I don't think you should lower your contributions to your 401k. You have a long time until retirement. Everyone experiences ups & downs from the market. If you continue to buy now, you're actually buying those shares at a discount because the market is low. As long as you have plenty of time before retirement, you should continue to invest.<br/><br/>I'm in my mid 20's & I'm still continuing to buy. I even reallocated my future investmens to be more aggressive than I already was. I don't think you should lower your contributions to your 401k. You have a long time until retirement. Everyone experiences ups & downs from the market. If you continue to buy now, you're actually buying those shares at a discount because the market is low. As long as you have plenty of time before retirement, you should continue to invest.

I'm in my mid 20's & I'm still continuing to buy. I even reallocated my future investmens to be more aggressive than I already was.

]]> By: Jen C http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3134 Jen C Thu, 16 Oct 2008 22:09:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3134 I agree with the comments on not lowering your contributions. Since you are still young, you should take more risks. Also it may seem counter intuitive, but when the market is turned down, it's the best time to invest since there is more room to go up. I agree with the comments on not lowering your contributions. Since you are still young, you should take more risks. Also it may seem counter intuitive, but when the market is turned down, it’s the best time to invest since there is more room to go up.

]]> By: Abigail http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3132 Abigail Tue, 14 Oct 2008 08:51:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3132 Keep contributing. Yes, right now your net worth is going down. But things do even out over time. The only move I'd consider would be maybe getting a more conservative portfolio. Or, if you're not morally opposed, "vice" stocks are always good in bad times: cigarettes, alcohol, etc. <br/><br/>Not completely pertinent, but still interesting and partially topical, I read an example in one of Liz Pulliam Weston's book about retirement savings:<br/><br/>There is a pair of twins. One starts contributing at 22. She puts in $3,000 a year until age 32. Then she stops and never puts in another dime.<br/><br/>The second twin starts contributing at age 32, $3000 until they both retire at 62. <br/><br/>The first twin has nearly $100,000 more. Keep contributing. Yes, right now your net worth is going down. But things do even out over time. The only move I’d consider would be maybe getting a more conservative portfolio. Or, if you’re not morally opposed, “vice” stocks are always good in bad times: cigarettes, alcohol, etc.

Not completely pertinent, but still interesting and partially topical, I read an example in one of Liz Pulliam Weston’s book about retirement savings:

There is a pair of twins. One starts contributing at 22. She puts in $3,000 a year until age 32. Then she stops and never puts in another dime.

The second twin starts contributing at age 32, $3000 until they both retire at 62.

The first twin has nearly $100,000 more.

]]> By: bburns1977 http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3130 bburns1977 Mon, 13 Oct 2008 21:04:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3130 Nicole - I will refer you to your post on 1/11/08 and my comment to that. Remember when you asked me how my 401(k) got so big? My answer was that I was plowing money in for the two years following 9/11 when everything was falling off the cliff. The markets eventually recover, and you get a nice big gain. Again, this pertains to retirement funds only.<br/><br/>Bob Nicole – I will refer you to your post on 1/11/08 and my comment to that. Remember when you asked me how my 401(k) got so big? My answer was that I was plowing money in for the two years following 9/11 when everything was falling off the cliff. The markets eventually recover, and you get a nice big gain. Again, this pertains to retirement funds only.

Bob

]]> By: Jenn http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3128 Jenn Mon, 13 Oct 2008 19:08:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3128 Leave it alone. Leave it alone.

]]> By: Caleb Nelson http://thebudgetingbabe.com/2008/10/10/should-i-reduce-my-401k-contribution-while-the-economy-tanks/#comment-3127 Caleb Nelson Mon, 13 Oct 2008 16:59:00 +0000 http://thebudgetingbabe.com/?p=461#comment-3127 I agree with Jakob. I think that the writer should definitely reconsider where she is allocating her money. A 401k is still a good idea, regardless of the state of our economy. There are stocks that aren't doing bad right now. And there are other places where she could put her money also. <br/><br/>Caleb<br/>www.mefinanciallyfree.blogspot.com I agree with Jakob. I think that the writer should definitely reconsider where she is allocating her money. A 401k is still a good idea, regardless of the state of our economy. There are stocks that aren’t doing bad right now. And there are other places where she could put her money also.

Caleb
http://www.mefinanciallyfree.blogspot.com

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