I read a question posted on the FastCompany FastTalk board, “Q. How concerned are you about the long term value of your 401K plan?”
While normally this question would not normally draw my attention, however, it along with observing my friend (remember the would-be gold prospector?) caught my eye. Seems that since the start of this Economic Debacle, my friend, almost like clockwork, logs in and checks the latest on his 401K. I just scratch my head and walk away. Here is someone who is genuinely worried about something today that he will not need for another 20 or 30 years from now. He is worried about something that he is not living off of. Just like any economic situation it will get better. The economy has always had its ups and it has had its downs, you can bet it will have plenty of ups and downs over the course of the next 30 years. So, why get all worried, concerned, and paniced over nothing. The only people that should show some concern is those that are currently living off the return of their 401Ks.
Don’t get me wrong, I think my friend is genuinely worried about nothing. Especially, when low value is all there is . This is not time for concern (and panic) but time to take advantage of a bad situation.
I am firm believer in buying low and selling high. This is the time that my friend and many others should be dumping as much money as they can to build up their holdings. I know I am.
It is real simple: building up and solidifying the base of any 401K, mutual fund, or individual stock position while the prices are low is really the only thing that makes sense during the current economy. What is it that so many people find this difficult to believe? Some say that if the economy continues this downward spiral it will be pointless to invest in anything.
So the question from those worrywarts becomes: What if the stock market completely fails?
If you or anyone else has that kind of attitude, shouldn’t you be pulling your money out of the 401K, IRA, Mutual fund, stocks, or any investment program before the bottom completely falls out? I mean for pete’s sake, if you have defeatist attitude about the future of the market, then please cash out now before all your money is gone. Of course, what will you do with all that cash? Put it in the bank? Burying in the backyard? Or store it under your mattress?
Unless, you are ready to take advantage of a very unique situation, my guess is a mason jar under the front porch is right for you.
Here are some Technorati Tags:
• Dave Guerra • Economy • 401K • stocks • IRA • Savings • Growth • Buy low and sell high • Give to the American Red Cross • Hire A Hero
No comments:
Post a Comment