2008-10-14

Redux: I'm not touching my 401k

Yesterday, 13 October 2008, was a 'Top 10' day for the S&P 500.

11.68%

I was left wondering how many people cashed out their long-term investments on Friday scared of where the market is heading. They missed out on a whole year's worth of good appreciation in one day.

So like I said last week, I'm not touching my 401k.

1 comment:

Don said...

If you are a young and contributing to your 401k, you should be thanking the financial gods for the gift we have been given.

Think of it as buying more of your future wealth at deflated prices.

The one thing that does concern me though is this:

http://www.manarinonmoney.com/blog/2008/10/confirming-what-ive-warned-about-for-years/

If Congress does this to high income folks, it will eventually happen to everyone else. The pre-tax benefit is huge for long term wealth creation. Hopefully we continue to have it for a long time.