Ask Terry Questions 401K Contribution

401K Contribution

By Terry Savage on September 22, 2022 | Investments

Hello,Terry!
I typically max out my 401K contribution in January with my bonus. Would I be better off contributing with my bi-weekly check in 2023? I’d be contributing 1/26th of the max over the entire year.

Thank you,

Terry Says

That is a VERY interesting question. And we will only know the answer in hindsight! What I mean is, if the market hits a low in January and you made your entire contribution, you’ll feel like a genius! If you put it in monthly, you’ll never buy at the bottom, but you won’t kick yourself for having put it in just before the market fell further. Which would make you feel worse?

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