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I have heard that our economy could go into a recession? |
Does that mean i should pull my money from my stocks ( capital world growth and income, Growth fund of america, and Income fund of america)or does it really even matter? If this is your 401k, then keep buying. You are getting more for your money right now. When we get back to a bull market, the values on the bargains you get now are going to soar. It sounds like you are invested only in mutual funds. If you were invested in stocks, I would recommend that you sell while you can only if you think that the company will never recover from a recession. I can empathize with concerns about sinking 401k values, but remember that you are getting more shares per contribution when the market is down. The important thing is that you keep preparing for retirement. Some people will be left to rely on Social Security (and shovel french fries at the drive thru window). We will sit on the sand of a Carribean beach and watch our 100-foot yachts bob in the waves. Sound good to you? it already is depnds how bad the ressesion is, right now the government is taking steps to aviod a ression like the big intrest rate cut 2 days ago and another one isto be expected in the comming week or 2. Its probably better to talk to an advisor though b/c he'll know which stock would be impacted the most. If your stocks etc are still in the profit area I would pull out now and buy again when they hit near bottom (ie less than you paid for them the first go round). If you are too late for that you can ride it out and take your capital losses against other gains on your taxes. I suggest you get with a good brokerage and some online money lists and learn more about investing before you get in any deeper. Recession is just a word. It is just a word because there is no definite moment when everyone agrees we are in it or out of it or how long it has happened. You know the idea is to buy low and sell high, right? Why would you sell when it is low? If you sold now would you wait until it stabilizes and then buy (buying high)? Everyone knows this idea and yet they don't follow it. If this is your 401k, don't try to time the market. You look pretty young, so if you time horizon for cash-out is greater than 5 years, this is more of a time to buy than sell. I wouldn't pull them out now. When stocks are low, that is the time to buy, not sell. its a recession if your friend loses their job its a depression if you lose your job |
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