Here's why a market correction could be a good thing for your 401(k). (via CNBCMakeIt)
At first, experts say this correction may cause your 401 to suffer. But once the market bounces back, these corrections can be a good thing for investors — and especially "for both younger investors and long-term investors," says Ryan Marshall, a certified financial planner atFor younger investors, these corrections are considered "an excellent opportunity" because "they have a longer time horizon before they will need their money in a 401 plan.
If I polled my older clients, almost all wish they added to these market pullbacks in hindsight. Longer term investors view these pullbacks as opportunities and not setbacks.Additionally, for younger people, who generally have less money to invest, they typically have far less to lose than a more senior investor who has invested for many more years.
For those who plan on investing on a long-term basis, similar logic applies. So long as you won't be needing to cash out your investment money in the near future, these kinds of pullbacks will be made up over the long term as the U.S. market and economy recovers. They actually can offer great buying opportunities for long-term investors who are years from retirement.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to manage your 401(k) as the coronavirus upends the marketsIf you're like many investors, you're probably tempted to move your 401(k) around as the market shifts downward. Before you do that, you need to revisit your long- and short-term plans. These guidelines can help you decide when to stay put and when to take advantage of lower prices.
Read more »
Serie A, soccer clubs clash in Italy amid coronavirus chaosFive games scheduled in the top tier of the Italian league this weekend were postponed on Saturday in an attempt to contain the coronavirus outbreak.
Read more »
How to manage your 401(k) as the coronavirus upends the marketsIf you're like many investors, you're probably tempted to move your 401(k) around as the market shifts downward. Before you do that, you need to revisit your long- and short-term plans. These guidelines can help you decide when to stay put and when to take advantage of lower prices.
Read more »
15 Things Thrift Stores Don't WantThough moms' hearts may be in the right place, here's a list of things thrift stores just don't want to deal with either.
Read more »
5 things to know before the stock market opens MondayU.S. stock futures, which were way down and way up overnight, were pointing to a lower open on Monday after Wall Street's worst week since the 2008 financial crisis.
Read more »