Question: How can we protect our 401(k) as the market drops.

[gman]

I found this helpful in calming some of my fears concerning the market falling recently. -G

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Email question: How can we protect our 401(k) as the market drops?


Dave Ramsey: You don't do anything with your 401(k) when the market drops except put more money in it. 100% of the 10 year periods in the stock market's history have made money. You are young and there is very little doubt in my mind that your 401(k) while it drops right now and you keep pouring as much money as you can pour into it, when it comes back up later you will really clean up doing that. So the way you will look at it is like this, you are are at K-Mart and the blue light is on, there is a sale. You are buying these stocks on sale when the market is down. Its a great time to invest because investing implies you are going to leave the money alone 5 years or longer. So when the market is down I get excited. When the real estate market is troubled I get excited. Yeah it sounds kinda mean but I'm not excited about the people that are having trouble and struggling out there but as an investor, oh man, you can buy a $200,000 house for $150,000 and its going to come back up, real estate is fine. Five years from now you will look like a genius. Same thing with your 401(k).

[House]

this thread is so on point

As I stated on the main board:

"dollar cost averaging"

then again - i'm younger than you, grandpa. LOL