I would like to pose a common question that many Americans now face. With so many financial members on Meet The Elite, I expect some excellent feedback.
Scenario
You are currently 40 years old with a 401K (invested semi aggressively) that you contribute to. However over the last 8 months you have lost as much as 35% of your savings. You are now very worried and feel like you must make a change.
Scenario
You are currently 40 years old with a 401K (invested semi aggressively) that you contribute to. However over the last 8 months you have lost as much as 35% of your savings. You are now very worried and feel like you must make a change.
Do you…..
-Stop contributing money to the 401K and increase your pay check slightly?
-Try to re-invest the 401K in a guaranteed 3% conservative plan?
-Do nothing and wait it out?
-Liquidate your 401K and invest in something else?
What should these Americans do?
-Stop contributing money to the 401K and increase your pay check slightly?
-Try to re-invest the 401K in a guaranteed 3% conservative plan?
-Do nothing and wait it out?
-Liquidate your 401K and invest in something else?
What should these Americans do?
3 comments:
I have been a CFP for over 45 years and in tough times you can never go wrong with patience.
I dont agree with patience, i think we are headed for a 3 to 6 year down turn and you need to get your money out of the market asap!
I also agree with anonymous #1...investment in the market is for the long term. You have not lost money until you pull out of the market during a downward trend. The important thing is to make sure that you are allocated properly to ensure the best possible return when the market rebounds. EVERYONE should be reviewing thir portfolio to ensure that they are in the best possible position for a market rebound. Patience is key, moving your money to a lower interest fixed account will cause you to miss out on gain. Purchasing while stocks are low, allows you to take advantage of prices you may never see again.
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