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It might be tempting to put 401(k) contributions on hold, but sticking with it is a better strategy
- Investing consistently in a 401 during market downturns leads to significantly higher returns compared to pausing contributions.
- An investor who contributed $500 monthly since March 2000 would have about $700,000 by March 31, 2025, compared to $573,000 for a wait-and-see investor.
- Even during the 2020 COVID-19 downturn, consistent investors ended slightly ahead by March 2025, despite market fluctuations.
- The analysis argues that the market typically trends upward, and consistent 401 contributions can lead to substantial long-term gains, despite temporary losses.
29 Articles
29 Articles
Should I prioritize my 401K with a 25% match or go for a Roth IRA at 24 years old?
Strategizing retirement savings in your 20s can be a daunting task. That is the dilemma of Reddit member in the subreddit r/personalfinance who found himself at a crossroads. At 24, he is in an enviable position of harnessing the power of compound interest early in his adult life, a dynamic in which earnings beget further […]
It might be tempting to put 401(k) contributions on hold_ but sticking with it is ...
Amid this year’s market turmoil, I’ve heard investors wonder if they should hit pause on 401(k) contributions until things settle down. Though this approach sounds tempting, it’s better to stick with your investment strategy instead of waiting for conditions to improve. Running the numbers To test how a “wait and see” approach would have fared compared with continuing to invest, I looked at four different market downturns of the 21st century. In…
It might be tempting to put 401(k) contributions on hold, but sticking ...
Associated Press News
It might be tempting to put 401(k) contributions on hold, but sticking with it is a better strategy
Amid this year’s market turmoil,I’ve heard investors wonder if they should hit pause on 401(k) contributions until things settle down.
It might be tempting to put 401(k) contributions on hold, but sticking with it is a better strategy – EMEA Tribune – Latest News – Breaking News – World News
Amid this year’s market turmoil, I’ve heard investors wonder if they should hit pause on 401(k) contributions until things settle down. Though this approach sounds […] Source
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