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Question about my 401k
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<blockquote data-quote="trinityroyal" data-source="post: 202134" data-attributes="member: 3907"><p>A couple of things to think about...</p><p></p><p>1) Dollar-cost averaging (which is what you're doing Jo, by putting in approx the same amount every month)</p><p>This really helps you to get the best out of your investment by smoothing out the highs and lows of the market. Over the long haul, this is a really good way to maximize your investment because you buy more shares when the price is lower, and those shares increase in value along with everything else you hold in that stock or MF</p><p></p><p>2) Long-term view</p><p>If you look at the market over the long haul, the trend has always been upward. There have been peaks and valleys, some fairly significant climbs and corrections, but overall an investment that you bought 20 years ago will be worth more now than it was then. This is especially true for mutual funds, index funds, etc. where you're not gambling on the success or failure of a single business.</p><p></p><p>Statistically, if you look at long term investment success, staying in the market and not moving your money around too much lets you do way better than trying to time the market. Not only because you might miss a good opportunity by a few days or weeks, but also because each transaction incurs fees. </p><p></p><p>I'm with Shari in that when the market is volatile, I just don't look...</p><p></p><p>Trinity</p></blockquote><p></p>
[QUOTE="trinityroyal, post: 202134, member: 3907"] A couple of things to think about... 1) Dollar-cost averaging (which is what you're doing Jo, by putting in approx the same amount every month) This really helps you to get the best out of your investment by smoothing out the highs and lows of the market. Over the long haul, this is a really good way to maximize your investment because you buy more shares when the price is lower, and those shares increase in value along with everything else you hold in that stock or MF 2) Long-term view If you look at the market over the long haul, the trend has always been upward. There have been peaks and valleys, some fairly significant climbs and corrections, but overall an investment that you bought 20 years ago will be worth more now than it was then. This is especially true for mutual funds, index funds, etc. where you're not gambling on the success or failure of a single business. Statistically, if you look at long term investment success, staying in the market and not moving your money around too much lets you do way better than trying to time the market. Not only because you might miss a good opportunity by a few days or weeks, but also because each transaction incurs fees. I'm with Shari in that when the market is volatile, I just don't look... Trinity [/QUOTE]
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