Financial advisor says keep investing in your 401(k)
ALBANY, Ga. (WALB) - As stock prices continue to fall, financial advisors are telling South Georgians to keep investing in their 401(k).
Vic Sullivan is a financial advisor from Upland Wealth Advisors. He says first it’s best to look at your situation. Adding that if you’re young, you should keep investing or put even more.
“For a younger investor or an investor that still has a lot of time before retirement, the market going through a cycle like this can be quite rewarding,” Sullivan said.
Sullivan explains something we learned in our economics class. Buying on the market dip is proven to be effective. This also applies to retirement plans which are based on the S&P 500.
“Buy more of the market price when the market dips. Buy less if the market is on a higher level,” Sullivan said.
He notes that we don’t know where the bottom is, and he’s reading research that suggests we could see a recession next year. Still, he says investing money you save up is a smart idea.
“Invest today, or next month, or six months from now. Do it on a regular basis and benefit from the market dropping down periodically. It’s going to do that. It always has,” Sullivan said.
He says some 401(k) plans automatically put more money in during dips and less during peaks. That’s something he recommends his clients to look into. Sullivan knows there are people who live bill to bill and cannot save money. He still recommends everyone find some way to invest in their future whether it’s moving to a place with lower rent or having less material spending.
“Everyone’s situation is different. But there’s no doubt that saving and building your assets over time can be very rewarding,” he said.
Sullivan says the one group hit the hardest by the dip is retirees. They are getting less money today than just a few months ago.
“Pulling money out of their assets is way more of an issue than someone that is younger and building assets that are accumulating,” Sullivan said.
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