Megan McArdle says about your 401K, “Don’t Look.”Â I’ve been following this advice since the whole thing started.Â I just don’t want to know.Â I’m not in this for the short term, and I definitely don’t want to buy high and sell low.Â I’m going to wait for this mess to bottom out and then get all my money into something where it’s going to ride with the recovery.
3 thoughts on “Good Advice”
Over time investments in stocks have done better than many others. If you have 10-20 years before you will need the money, you can afford to take a dump now and still have a good chance to recover. If you need the money in a year, you may have a problem, which is why a portfolio should migrate over time to less risky money placement as you age. I am 57, hopefully 10 years from needing my 401k money.
I still want to throw up, however…
Only with luck can you pick the bottom, so I’m just going to keep adding more every time I get paid. Now is a great time to be young, assuming the FedGov’s interventions don’t damage the US economy’s chances of long-term growth.
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