Between Monday and Wednesday, I've lost almost $1000. My gut reaction is to lower my 401k contribution from its current level of 20% down a few notches, so as to let the money trickle into my checking account that is paying 4.5%.
Of course, before it trickled there, I'd be taxed on it. And then taxed on any interest it makes.
I'm torn: 4.5%, even with the taxes feels like a better deal than the negative 10% I've endured this week.
Then I sigh, and remind myself that I'm in this for the long horizon (15-20 years out) and that any additional contributions will be used to buy these funds at a discount.
If I were to drop to say, 18 percent, what would signal the opportunity to increase back up to the original 20%? Once the stock prices start getting more expensive to buy?
I should just leave it at 20%, be thankful that I'm buying at a discount, and take solace in the fact that I'm debt free and living beneath my means.
Just stinks, because it takes me a LONG TIME to make $1000. =(
Ouch!
September 18th, 2008 at 06:49 pm
September 18th, 2008 at 07:25 pm 1221762306
September 18th, 2008 at 07:45 pm 1221763502
September 18th, 2008 at 10:19 pm 1221772742
September 19th, 2008 at 12:36 am 1221780961
85% of my $ is in stocks. Yes it worries me, but if you can ride this out without panicking, the market WILL come back and then you'll see the cream rise to the surface. Well, ok, bad metaphor, but you know what i mean, right?
September 19th, 2008 at 04:24 am 1221794644
Wheee! I LOVE rollercoasters!
Now if only I could train myself not to watch the markets so closely.
20 year horizon. 20 year horizon. 20 year horizon...