Thursday, October 08, 2009
Stay in those 401(k) plans, please
Take a good look at today’s (Oct. 8) “The Color of Money” column in the Washington Post by Michelle Singletary, titled “The forecast is sunny if you weather the 401(k) storm,” link here.
Singletary discusses an EBRI-ICI (Employee Benefits Research Institute/Investment Company Institute) report, showing that over 2003-2008, balances rose over 7%, even with the horrible year in 2008, where balances dropped markedly. That report appears to be at this link.
401(k) plans are intended to work over the long haul. If you’re young and can put anything away at all, you should, and keep the strategy of dollar cost averaging. When stock prices are depressed, you buy more shares.