7 Responses to “Should I start 401K with a recession around the corner?”

  1. Tom V says:

    You absolutely should. A 401(k) is a life-long investment, so you shouldn’t worry at all about the temporary ups and downs of the market. Even if this recession lasts 5 years, just think of it as an opportunity to buy while stocks are low.

    Assuming you’ve got a long way to retirement and you’re investing a portion of each paycheck, you’ll be doing what’s called "long term dollar-cost averaging" which is a proven mechanism for generating lots of wealth.

    Happy savings!
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  2. en camera says:

    It’s never too early to start a 401K. Buying when the market is down gets you more shares in whatever you are investing in. All stocks are risky, but if you wait forever you will never have enough invested to be able to retire when you are eligible. When the market performs better it just costs more per unit.
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  3. Thin Kaboudit says:

    I think you answered your own question…should you start buying now, while investments are "on sale"? Or should you wait until they will cost you more? LOL!

    The way to get VERY rich is to put in the most money when no-one else is putting in anything, and the least money when everyone else is buying up everything in sight!

    Best wishes!
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  4. David M says:

    Tom V is right. Start as soon as possible. Also, if you are investing when the stock market is down, you are buying "low" and that is the goal to buy low and sell high. So, if you have money, buying stocks during a recession is a smart move. While everyone else is selling because they need the money to pay bills, you are buying with your excess money and probably at a very good price. So, the managers of the 401 K are doing all that for you.
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  5. Doctor Deth says:

    they should at least have money market funds where you won’t lose any money if the stock market goes down – I’ve moved most of my 401k money there for now – If you get company matching – that’s free money to you – take it
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  6. Kengem says:

    Guess I’ll just echo what everyone is sayin: yes you should enroll.
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  7. digdowndeepnseattle says:

    another way to phrase your question is…should I get in now and share in the gains or should I wait and get in after the appreciation has taken place. The answer to that is obvious.

    Look, you’re never gonna be able to know exactly when the market is gonna hit bottom. Since you can’t time that there is no better time to get in then right now…and I’d say that no matter which way the market is headed. Only way to start that compounding effect is to get some principal into the plan. You can wait to do that or you can start now….your choice.
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