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Should I Put More Money or Less Money In My 401k

Wednesday, August 27th, 2008

With the recent struggles in the stock market a fairly frequent question I get is should I start putting more money into my 401k or lower the contributions?

Personally, I started putting more money away in both my 401k and IRAs as I am investing in good quality mutual funds and they are currently at a discounted price.

People tend to follow the crowd, here is the basic mentality of the individual investor right now. Economy is bad, inflation is rising, stuff cost more, I should not invest as much.

Now I ask myself what should I do?  Go 100% against what the crowd is doing! I have doubled my contributions in recent months and will continue packing away as much as I can into my retirement accounts.  It is bargain time.

If you read my other personal finance articles, you will see additional investment advice of mine.  What are your thoughts?