| that is not how a 401k works.. You are not at a loss if you don't sell.... Any buying in a down market is ALWAYS better for a younger generation. S&P500 still has a 10y avg of 11-12%, that means every year that is the avg return. Even if there was 2-3 bad years, the 7-8 good years make up for it... So in 30 years time, it doesn't mater if we had a few bad years of -20% declines. You are still up massively. Young people have such a lack of understanding when it comes to the stock market and it shows. If your 401k only avg %5 return per year over a 30y span, you picked the wrong investment methods. Too much in bonds.. Still you should be taking advantage of employer match. Pretty much every employer has a 401k program, use it. SS will be there, but you don't want that to be your life line. Sadly Gen X didn't really understand 401ks, they got them later in life and many didn't fund them correctly. It isn't uncommon to see genXers take money from the 401k later in life with a hit, and it will be on their family to take care of them when SS isn't enough. |
Sure it is.
Yep, I agree with your investment advice.