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Recessions like 2008 are part of the normal ebb and flow of the markets, and we're likely heading into another one (though hopefully not quite so bad). 5-6 year
by snuxoll 9y ago
Recessions like 2008 are part of the normal ebb and flow of the markets, and we're likely heading into another one (though hopefully not quite so bad). 5-6 years earlier wouldn't have made a noticeable difference unless they were planning on retiring between 2008-2012ish, the markets have recovered after all.
Personally, if I see the stock market dip like that again I'm going to double down on my 401(k) contributions.
- njarboe 9y agoHistorically, timing the dips does not work out, but maybe if everyone is thinking that way the strategy could work.
- imtringued 9y agoIf timing the dips would work consistently there wouldn't be any dips because everyone would take the risk free return until there is no risk free return left.
- njarboe 9y agoOf course not consistently. Just, if something becomes conventional wisdom in investing all of a sudden, there might be contrarian opportunities for a little while.
- Y7ZCQtNo39 9y agoYou should double down on your 401(k) contributions today to better your odds for a comfortable retirement. I wouldn't let expected market returns impact the amount you feel is appropriate to save/invest today.
- snuxoll 9y agoI already put a healthy amount into my 401(k), my employer matches $1.20 for every $1 up to 6% of my wages plus I usually get another 4% of my salary put in every April as a profit sharing bonus. I could put more in, but I’m trying to pay off debt and save for a house so that takes priority - even then I may invest in my brokerage account first to have semi-liquid assets available if something major happens and I need access to more money than I have in savings while not locking everything up in low APY hell.