Wednesday, October 22, 2008
A 401K Issue
I have been ask the question several times recently, "Should I decrease the amount that I put into my 401k every month. Heck NO!!! Unless you need the money to live on, this is not a good move. Why? Number #1 this is money you are saving for retirement which means long term!#2 you are buying at a lower price now than you were a 1 month ago, 1 year ago, and probably 5 years ago. This means you are accumulating more shares at a lower price. #3 this money is tax deferred. and #4 your employer is probably matching your contributions up to a certain percentage which is like FREE money. In fact if you are not contributing the full 15% allowed you should consider bumping it up to the maximum allowed.Stay invested folks and stay the course.