In today's market, am I better off continuing to put into my 401K or should I work on paying my house off?

Question

Currently I'm putting about 800 a month into my 401K. My 401K is losing money every month. My employer only matches 2K a year, so after that it's just my money. Would I be better off at this point putting everything after my employer match contributions towards my house, or is it better to buy low and wait for the market to swing back up as it will eventually do. I'm 28 years old so, the 401K is in for the long haul.

Answer 1

Continue with the 401k.  The stock market is bad now, but a good time to be putting long-term money into it.

If the interest rate on your mortgage is, say 5 or 6%, that is "cheap" money and also tax-deductible.

Answer 2

continue to put money into 401k. you can never make up for lost time when it comes to saving for retirement. over the long haul the market offers the best return. as you said, right now your 401k deposits are buying shares at a low price. down the road they will look like good buys.