401 K contributions
My husband is a year away from retirement. He’s heavy into contributing to 401K Should he contribute less since we keep losing money? Not sure what to do
Terry Says
He should definitely continue to contribute – -now buying stocks at lower prices! But since he is so close to retirement, he should review his investment choices inside the plan and consider some more conservative funds — such as an equity-income fund if there is one available.
You should also be accumulating some savings OUTSIDE the retirement plan — hoping to have enough funds for an emergency, so you don’t have to sell and withdraw during a decline in the market. He won’t be required to make withdrawals until age 72 (or perhaps even later if they change the rules as is being discussed) — so plenty of time for the market to rebound.
