US EditionIt 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.
21 Articles
21 Articles
Cashing Out My 401k After Layoff – How Much Should I Set Aside for Taxes and Penalties?
Key Points A Reddit user is thinking of taking money out of his 401(k) after a layoff. Other posters suggested he avoid the early withdrawal by making sure he and his wife are signed up for the benefits they are eligible for. If the poster does take out money, he should be aware he’ll owe a 10% penalty and may find himself in a higher tax bracket. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial a…
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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