Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: splotto Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25707  
Subject: Re: Emergency Savings vs. Maximizing 401K Contri Date: 10/9/2002 9:43 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3

I might be in the minority in here, but I think now is a great time to be buying. I think that all the purchases your 401k is making since July will payoff nicely 2 years from now. I have actually increased my contribution and I have been buying many of my DRiP stocks during this blue light special.

If you walked into your local store and discovered that a box of Band-Aid's were half price, would you not buy them? No. You would be happy they were on sale.

Clearly the analogy assumes that the Band-Aid's are the same product that they were when selling at full price. Some of the stocks out there are on sale because of real trouble. However, when we are talking about a total market index or an S&P 500 index (or quality stocks that are undervalued) you are still talking about generally the same companies.

You might consider not changing your contribution, but trying to lower your expenses elsewhere in your budget to add to your reserve. Don't forget, while it is not the best possible choice, your 401k funds are there if you have a REAL emergency (like being faced with losing your house or something).

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Saul's Investing Discussions

Gilead Sciences CC Thoughts
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.