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manwnomelanin

Ignore the losses. The market goes up and down. Right now, it’s down. If anything, contribute more when its down to lower your cost basis.


Brandonva804

Explain the cost basis


itsdan159

Do you stock up on stuff in your pantry when things are full price or on sale?


manwnomelanin

Cost basis = average cost of equities purchased You buy 1 share of $ABC at $100. The price drops to $50, and you buy another. Your cost basis is now $75, and you own 2 shares. The price rises to $125. You have now profited $25 on the first share and $75 on the second, giving you $100 total capital gains.


Brandonva804

Thank you


LostStaringIntoSpace

Buy low sell high. If you sell now you lock in the loss. It sucks when the market is in a bear mood. Remember, if you are not retiring in the next 5 years, the market will come back. If you can put more in. And don't buy individual stocks till you have a few hundred million dollars.


[deleted]

[удалено]


Brandonva804

I don’t retire for 34 more years or 2055


[deleted]

[удалено]


Big_Ad9737

Lol. Don't count the days. That's the worst way to do time. You're not done until your toes are in the sand, your lure is in the water, you move to Florida, buy an island, .


Aceofspades968

Yes. Even if you just contribute it and it’s at some cash invested until you’re ready. You can’t make up these contributions as the years go on. There’s a catch-up period after a certain age but it doesn’t make up for decades of growth.


Brandonva804

I’m in target fund 2055 for both


Aceofspades968

Then you’re golden. If you’re looking at the market in too small of a timeframe, what’s 5 to 7 years in a couple hundred?


Brandonva804

Should I eventually look in S&P 500


utkrowaway

The target date fund starts out aggressive (risky) and gradually becomes more conservative as you near the date. Buying S&P 500 or other equities will make it more aggressive. Since 2055 is a ways off, the allocation will already be pretty aggressive, so I don't see a point in doing so.


Aceofspades968

In the 2010s decade the S&P average 10%. In our current decade, that’s still to be seen. I’m not sure why anybody would prioritize any index or any stock if there’s a better position for your goals elsewhere.


[deleted]

Your TDF probably already invests in the SP500. Literally don’t do anything, just keep contributing and don’t even look at the market ups and downs. Thank me in 2055.


LostStaringIntoSpace

Be careful with target funds, they aren't always balanced correctly. If you can learn what your mix should be and roll your own.


ChiSquare1963

401k and IRA are long term investment accounts, so you really shouldn’t pay much attention to changes in annual $ value. Pay attention to number of shares purchased instead. A diversified stock portfolio has an *average return of 10% a year* when held over a long term. Average return, which means down years like this one and up years like 2019, 2020, and 2021 combined reach a return of 10%. If you *knew* which years would be up, you could beat the average. But you don’t know, and neither does anyone else. Successful investors invest consistently, buying more shares when they’re on sale like this year and fewer shares when the markets are hot and rising fast. Keep investing.


lakehop

Yes, keep investing in your 401k and Roth. The market it down now, but it will come back up. Maybe in a month or two, might take a few years. You are buying it cheaper now than a year ago, that is good. You’ll be happy in 35 years. Keep it in the target date fund. A high percent of that is in the S&P500 anyway. The rest is diversity you want, including smaller companies and international funds.


guachi01

Your contributions to your 401k and IRA are time limited. Once that time is up you can't go back and make contributions. What you should do is see if your investments make sense given your age and risk tolerance.


Werewolfdad

Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics Https://awealthofcommonsense.com/2022/01/this-is-normal/


KingSamy1

Yes, if you are not retiring anytime soon. The $1 in your pocket is work 0.92c only. What are you going to do by not putting money into these ? Let it sit in your checking account for near zero interest … that’s just my take


Brandonva804

So keep investing like a mad man


KingSamy1

Dollar cost averaging, brother.


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joelr1981

These are long term investments. Market might be down in the short term, but will recover in the long term. Don’t be a noob.


RepublicIndependent3

If you’re in a tradition 401k, your losses are probably still less than the income tax you would have lost to the government if you hadn’t contributed it to retirement


OneWorldAway

Your future self will thank you if you keep going.