Ask The Expert

Questioner: Sandra

Question: I am 60 years old. I contribute the maximum to my 403 K and my employer contributes 10%. I have lost a lot on paper these past months. Is it wise to keep contributing the maximum or should I put this money (except the 4% I put in that my employer matches) in something else? Thank you very much.

Answer: Welcome to the club, everyone has lost a lot on paper. Many have lost, panicked, and sold. So those people lost even more.

First and foremost, I would like for you to have a portfolio analysis. I always suggest using a "fee only" financial planner to do this. Not your brother, sister, neighbor, husband, or co-worker.
You want to make sure that you are properly diversified. Most people are not, and truthfully are not even close to being.

Secondly, never stop contributing to the plan as long as you are still employed. Especially, do not stop contributing to the market. I like to say that "He Who Has The Most Shares-Wins!" During this period of time look at the market right now as a tremendous buying opportunity and as you are buying, you are buying a lot of shares at lower prices. When the market comes back, as it always does within the next 24 to 36 months, you will be way ahead.

Good luck.

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