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it took 30 years for people's stocks to recover that bought them right before the great depression.
by thesimpsons1022 10y ago
it took 30 years for people's stocks to recover that bought them right before the great depression.
- pwthornton 10y agoThe very nature of saving in a 401k is that you never at one time put in a high percentage of your balance into it. The max individual contribution is $18,000 a year. Let's say you have been doing around $10,000 the first 10 years of your career and the economy tanks. You now have 30-40 years until retirement, and you start doing $15,000 or so a year. That money that you put in before this huge crash may not grow that much before retirement, but the money you put in after the crash will be bought at low rates and will grow for a long time. You will also have put in a lot more money post crash anyway.
- seanmcdirmid 10y agoYou can contribute more after a certain age as a way of catching up.
- pwthornton 10y agoTrue. And you can also do other savings vehicles outside of your 401k to save even more money. I just wanted to illustrate that it's not like people put all of their money into their retirement account on one day and if a crash happens the next they are screwed.
- seanmcdirmid 10y agoTrue, I haven't been 401k eligible h(or even Roth), so I have a lot of savings in post tax cash. I just got my Chinese pension contributions refunded, at least, but I'm way behind even on my social security contributions.
- jedbrown 10y agoHow do you define "recover"? Stocks were ahead of 10-year T.Bonds by 1945. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/...