Nov 27

I have a target retirement fund for all my 401K money and it’s down right now. If I keep adding money does it buy more shares of it so when the price goes up I do even better?


6 comments so far...

  • Jeff Said on November 27th, 2009 at 7:53 pm:

    If you already have money in, then “stocks are down” 8^(

    If you’re looking to put new money in, then “stocks are on sale” 8^)

  • Chris L. Said on November 27th, 2009 at 8:20 pm:

    It is always a great time to contribute to your 401K. Stocks are on sale right now, you get more shares per dollar. Just keep it slow and steady.

  • worldfrogmoney Said on November 27th, 2009 at 8:50 pm:

    Buy at the bottom

    Ever heard of the 2000 crash

    wiped many out

  • Common Sense Said on November 27th, 2009 at 9:06 pm:

    5 years from now you’ll be very proud of yourself! Keep on adding regularly!!!!!!

  • jsmithlong Said on November 27th, 2009 at 10:01 pm:

    2008 contribution limits are $15,500 for age under 50
    and $20,500 for age 50 and above.
    http://mutualfunds.about.com/od/retirement/a/2008_limits.htm
    Increase your contribution as much as you can afford.
    Having said that you need at least 6 months of monthly expenses including any loan payments saved in cash before you put more money in your 401K.
    In my opinion, stock markets will stay down for next 3 years due to stagflation caused by oil crisis. So, you have time to increase your contributions gradually if you can not increase them immediately to the maximum.

  • yoko1san Said on November 27th, 2009 at 10:25 pm:

    It’s never a bad idea to keep contributing to your 401k. If you feel so nervous about the economy or stock market, just keep stocks less than 40% of your portfolio. Try to diversify your investments across a broad class of stocks and bonds. Oh, and don’t buy company stock offered by your own employer; if the company collapses, then your savings will be wiped out.

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