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401K Contribution

By Terry Savage on October 17, 2022 | Investments

I am 64 years old, work full-time. My husband is 71 years old and retired. I contribute 15% of my paycheck to our 401K. I was wondering with the current climate of our 401K losing money, if I should put my contributions on hold until the market climate improves.

Terry Says

Well, I understand your concern about “throwing good money after bad”! But in a way if you stop, you’re passing on an opportunity to buy mutual funds at bargain prices. And you’re missing out a lot if your employer contributes a matching amount.

How about you keep contributing, but choose a more conservative fund inside your 40l(k) — either a VERY short-term bond fund, or an equity-income fund. You don’t have to start taking money out for another 8 years, and the market should rebound by then!



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