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U.S. Retirement Savers Stayed Calm While Stock Markets Plunged

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"Many participants minimized losses by continuing to make retirement plan contributions during the period."  Explain, how does that minimize losses?  You're adding money, but that doesn't minimize any investment losses for investments you already have in your account.

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No, but the losses are hopefully not permanent. When you jump out of your down stock fund in favor of a "safe" fund like cash or bonds you've sealed your losses.

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1 hour ago, cv91915 said:

Suckers.

 

We liquidated ours and bought two Jeep Wranglers.

I hope you got 0% for 84 months with three months payments deferred.

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1 hour ago, hegemony said:

I hope you got 0% for 84 months with three months payments deferred.

+ tire and wheel protection package.

 

For the peace of mind.

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20 hours ago, Burgerwars said:

"Many participants minimized losses by continuing to make retirement plan contributions during the period."  Explain, how does that minimize losses?  You're adding money, but that doesn't minimize any investment losses for investments you already have in your account.

Depending on what they were holding, a paper loss on something that continues to pay a dividend is not a loss that impacts life...and there are a substantial number of the 'retirement' favorites that are still paying out on their regular dividends.  Meanwhile, the new contributions bring down the dollar-cost average.  Smart investors buy low and sell high...and this is an ideal time to be snapping up steals that exist out there. 

 

Further, many with the 401K plans are not in the individual stocks but rather funds...and if you trust the fund manager, then they are often doing a lot of things that serve to maintain value in the fund.  One of the ones that I was just discussing with an adviser on mom's account was pointing out that the one we were moving about $10K into had actually stayed above water on the year...up 9% through the end of March.  Granted, that was still down from a high in February, but few are going to complain about 9% growth on their money in a three-month window of time...

 

I've still got contributions going into my IRA in addition to the purchases outside of that environment, although my most recent moves have been with January 2022 options.  The question for me right now is whether I continue to hold them for a year and a half or whether I flip the contracts and settle for the smaller 200-300% gains that would currently exist on many of them.  

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