So my question is...
Should I keep putting money in the stock market? My 403B through work is with stock market.
How should I prepare for retirement?
Pacosurfer, That depends of several things.
When do you plan to retire? The closer you are to retirement the more careful you have to be. If you are young (I'm 64 so someone in their 40s is "young" in my book) you have a longer time to recover.
Are bond funds offered? Bond funds are traditionally less volatile although their are no guarantees. Government bond funds are typically the least volatile but also have the lowest returns (which doesn't matter in a bear market).
Remember what Warren Buffet said, "Be bold when others are fearful and fearful when others are bold." IF we do have a bear market (and it doesn't take any particular physic ability to realize that one is overdue) it is a buying opportunity. Fortunes are made in bear markets. If a stock index fund that is selling today for $100 suddenly drops to $25, you are buying 4x the shares with each monthly contribution. It will come back in several years but instead of having 250 shares you have 1,000 (or whatever). If you have a stable job bear markets are great opportunities. Fortunes really were made in 2009.
You can also go to a financial planner - not one that works on commission but one that charges by the hour - and ask them what a defensive strategy would look like? (Try your bank or credit union. You might not even have to pay as a customer.) There are many, many people in the investment world that are very nervous at the moment. You won't come off as a crackpot and you don't have to mention any predictions on this site. A bear market is overdue and everyone knows it. The important thing to remember, however, is that when one does come, it's a buying opportunity. Maybe a once in a lifetime buying opportunity.
Good luck.
Thanks, Paul.
I'm about 40, so I have about 25 years left. Right now, I contribute 11% of my income to my 403B plan.
I think I will keep doing that. I guess no one can predict it, so we do the best we can.
Thanks, again!
Do you check the allocations of your investments every now and then? It's a good idea to do that. Maybe your 401k fund provides an advisor (although some of them get commissions for pushing certain products, so do ask about that). Try to get out of things that aren't going to last (fossil fuels) and into things that will grow. No matter what this government is doing, things like coal are dead, even if they get propped up for a while.
I'm 54, and I'm still pretty aggressive with my 403b (the nonprofit employer version of a 401k). I'm planning to work until I'm 70, so I figure I've got time. And I also max out my contributions (mostly because I can afford to do that now, although that was not the case when I was your age). And if everything goes to hell in a hand basket, at least you're reducing your taxable income and not paying it to this corrupt government,
Thanks, Lynnventura.
Yes, I check the allocation. It is very diversified...I know the tech giants are in there (Facebook, Amazon, Google, etc...). I will keep maxing out my contributions. I put all my raises in there. Thanks for your help!
OK I found the article. Check this one out, it isn't a very difficult read.....
https://seekingalpha.com/article/4118869-stock-market-will-peak-may-10-2019-4-00-p-m-est
thank you for this...
I guess since I have another 25 years to go...I'll just keep doing what I'm doing.