With the market taking a nose-dive this week, I'm sure you are tempted to look at your nest egg to see how it is faring. Don't! Doing so might make you do something rash. I looked, and I learned that my my losses exceed all of my contributions and my employer's matching for the past 12 months.
Seeing thousands of dollars just disappear into thin air makes me want to do something about it. But doing something in the down market might be the worst thing to do.
Investment vehicles like 401ks are long-haul earners. Knee jerk reactions to a bear market can hurt your overall return in the end. To calm my fears, I simply try to keep in mind that as my current investment values go down, my buying power on current contributions goes up.
No matter what, keep investing.
John Rosavear, The Motley Fool
"Assuming" the markets recover, as the professionals say it will, my investments made during the bear market will be the saving grace of the losses during the same period. It is imperative that investment contributions continue to be made.
If I were only a couple of years from retirement, my inaction would most likely differ. Since I have another 20 or so years, I'll let it ride.
401(k) Steps to Take Now [The Motley Fool]
How to handle the crisis in your 401k [The Atlantic]