Still Buying Stocks, and So Should You
A while back, I asked if the bottom had set in on the current market downturn. In the following months, the Dow and S&P 500 had enjoyed a generous bounce in value. Despite this, the market has a way of making liars of us all. Stocks are today treading on fresh lows while oil dances above $140 per barrel.
While I never will consider myself a maven of investing knowledge, I am still purchasing stock in this environment through my automated 401K investments. In the long run, I know I will make out.
I’ve pointed out before that investing at any time for the long haul is a smart investment. Doing so in a down market is even better. While there are examples of horrible performance out there, such as General Motors, the market as a whole is a great place to invest. That means today is an even better opportunity than before to buy up more shares at a discount.
When time is on your side, as it should be with your employer sponsored retirement plan, you should not be afraid to dive in when the market throws a sale.
Take this opportunity today.
Bump up your 401K
If you are not contributing up to your employers full match, bump it up 1%. Do it today. Make it a priority and make it happen. 1% will not kill your spending for most readers out there. If you are getting your full match, consider it anyways. Like I said, 1% will not kill you, but it may be a sizable boon to your future nest egg.
Contribute to a Roth IRA
If you have been considering making or contributing to a Roth IRA then do it now. The stock market is on sale. If this was a grocery store, you’d be stocking up on essentials on the cheap. The stock market is no different.
Perhaps the market continues to slide. There is a good chance it will taking into account the amount of fear in the market. Don’t let fear dictate your investment strategy though. Keep your time horizon long and you will be glad you stayed the course while the chicken littles around you ran for the hills.