Category Archives: 401(k) Plans

Contribute to a 401(k) Plan?

I am a 23 year old who recently switched jobs and I have yet to enroll in my new employer’s 401(k) plan. The reason behind this is that I have a negative return with my former employer’s 401(k), and it seems as though our economy is headed for a recession. My question to you is what kind of assurance would you provide to concerned investors like myself concerning the stability of the market? Is now a good time to invest despite continuous losses? Dosh, Delaware.

As a 23 year old, you have quite a few years to go before you will need your retirement money. I would not worry about the current climate in the stock market due to the fact that you have many years of compound growth ahead of you. Despite the fact that the market may dip even lower than its current levels, it is important to continually invest. Although the prices of equities are lower than they were six months ago, you need to take the viewpoint that shares are “on sale”. Your 401(k) contributions today will be able to buy more mutual fund shares now than they were six months ago. Although in the near term you may see some volatility, over the long term you should be rewarded for your patience.

Matt / Google+