It’s not an easy thing, watching your hard-earned money disappear before your eyes.
I’ve made a concerted effort to not check my 401(k) account too often as the stock market sinks. CPAs from coast to coast are advising us to stay calm and keep the faith in our investments. Plus, I figure that watching the account shrink in real time wouldn’t be good for my sanity, so I’m trying to play it cool for the time being.
Still, the few times I’ve taken a peek have been like punches to the gut.
Then there’s this: My wife just changed jobs, and we’ve been debating: Should she immediately sign up for her new 401(k) in the middle of a severe market downturn, or should we put that money toward paying off the student loan she took out for her master’s degree and wait on the 401(k) until things start looking up on Wall Street?
That debate will undoubtedly continue. Meanwhile, I’ve stumbled across three articles that tackle these issues head-on, courtesy of The Washington Post’s Michelle Singletary and her personal finance column:
- First, there’s “Retirement Wreck,” in which author Nancy Trejos tries to answer the question: Are 401(k)s still viable for saving? Trejos’ answser seems to be, “It depends on how much time you have.” Singletary’s response: “Yes, it’s still worth investing in your company-sponsored retirement plan, especially if you are getting a match.”
- Next, there’s All That Money You’ve Lost: Where Did it Go? Associated Press writer Eric Carvin takes a closer look at what happens to the money we could have had, if only …
- Finally, there’s “How I Keep My Sanity While My Savings Vanish,” by Kiplinger.com Editor Fred W. Frailey. The advice is a little too hands-on for my tastes, but it might suit you.
What do you think? Are 401(k)s still worth the investment these days? Let us know what you think, then check out these other financial literacy resources: