When your 401K fund prices are down is it good to keep putting money in?

Question

I have a target retirement fund for all my 401K money and it's down right now. If I keep adding money does it buy more shares of it so when the price goes up I do even better?

Answer 1

It is always a great time to contribute to your 401K. Stocks are on sale right now, you get more shares per dollar. Just keep it slow and steady.

Answer 2

5 years from now you'll be very proud of yourself! Keep on adding regularly!!!!!!

Answer 3

Buy at  the bottom

   Ever heard of the 2000 crash

    wiped  many out

Answer 4

2008 contribution limits are $15,500 for age under 50

and $20,500 for age 50 and above.

http://mutualfunds.about.com/od/retireme...

Increase your contribution as much as you can afford.

Having said that you need at least 6 months of monthly expenses including any loan payments saved in cash before you put more money in your 401K.

In my opinion, stock markets will stay down for next 3 years due to stagflation caused by oil crisis. So, you have time to increase your contributions gradually if you can not increase them immediately to the maximum.

Answer 5

If you already have money in, then "stocks are down" 8^(

If you're looking to put new money in, then "stocks are on sale" 8^)

Answer 6

It's never a bad idea to keep contributing to your 401k. If you feel so nervous about the economy or stock market, just keep stocks less than 40% of your portfolio. Try to diversify your investments across a broad class of stocks and bonds. Oh, and don't buy company stock offered by your own employer; if the company collapses, then your savings will be wiped out.