You’re working and things seem pretty stable in your industry, at least for the foreseeable future. But still you wonder if you should continue contributing to your 401(k) or 403(b) plan.
Unless the money you are contributing could be used to help you avoid dire financial outcomes — losing the house, losing a car, having the utilities shut off, etc., — it’s a good idea to keep contributing to your 401(k) or 403(b) plan. Dollar-cost averaging is a proven way to increase your financial assets over time.
If it worries you a lot, you can decrease the amount to the minimum required to get your employer’s match. That really is free money that you’d lose by contributing less.
Even if your employer has reduced or eliminated a match, you should try to save through the existing plan or establish a Roth IRA for further contributions. As the economic recovery takes hold and the financial health improves, employers may reinstate matches over time.
You’re working and things seem pretty stable in your industry, at least for the foreseeable future. But still you wonder if you should continue contributing to your 401(k) or 403(b) plan.
Unless the money you are contributing could be used to help you avoid dire financial outcomes — losing the house, losing a car, having the utilities shut off, etc., — it’s a good idea to keep contributing to your 401(k) or 403(b) plan. Dollar-cost averaging is a proven way to increase your financial assets over time.
If it worries you a lot, you can decrease the amount to the minimum required to get your employer’s match. That really is free money that you’d lose by contributing less.
Even if your employer has reduced or eliminated a match, you should try to save through the existing plan or establish a Roth IRA for further contributions. As the economic recovery takes hold and the financial health improves, employers may reinstate matches over time.