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While sitting on cash isn't necessarily a bad idea -- when the market crashes you then buy a bunch of index funds, having a 401k is a very safe investment. Thin
by acollins1331 7y ago
While sitting on cash isn't necessarily a bad idea -- when the market crashes you then buy a bunch of index funds, having a 401k is a very safe investment. Think of it this way, the only way you're losing that money is if the market crashes, permanently, and if it crashes permanently, then that money isn't worth shit anyway.
- pureliquidhw 7y agoThis sounds a lot like you're trying to time the market, which is great if it works, but it's a gamble. Dollar cost averaging is generally regarded as the safer option. Remember, the market can remain irrational longer than you can remain solvent. Also, how can you know when the market has bottomed out? Why not use that same strategy to invest now and figure out when the market has peaked and pull out then? Sitting on money loses value due to inflation.
- ericd 7y agoJapan is still a wonderful country, despite the Nikkei being depressed for decades at this point.