JPF Home Page Forums Stop The Bailout

I did some calculations today to confirm or not what folks on TV (like Suze Orman) have been saying. I was astonished.

Suppose you continue to contribute to a 401k every month.

If the market tanks but then returns to its current value, you will actually come out ahead of where you'd be if it had just stayed level over the same period. A LOT further ahead. This happens because you are buying shares at very low prices during those months when the market is at its low point. And when it comes back up, ALL your shares (the ones bought a long time ago and the ones just bought) come up.

Of course, you lose big if you get out when the market is at its low point.

I'm staying the course - I have 10-15 years before I retire.....

Scott