The second most-asked question I get these days is: Should I continue to contribute to my retirement accounts in this environment?
This question has been coming up a lot with so much uncertainty with the economy and in the market. If you are wondering whether you should hold off contributing to your 401(k) or IRA accounts, and that maybe it’s safer to keep that money in the bank until this whole thing blows over…
My answer to that is: Don’t stop contributing now!
Continuing to fund your retirement account is important for your financial future. If you are young, you have the advantage of time and dollar cost averaging for your retirement accounts to recover. If you are older, just be sure that your investments are allocated appropriately for your age and risk tolerance.
Remember that your 401(k) reduces your tax liability so contribute the maximum amount if you can. The maximum 401(k) contribution for 2020 is $19,500 for those under 50 and $26,000 for those 50 and older. If you are lucky enough to work for a company that makes a match contribution, at least be sure you contribute enough to receive the full match.
If you are planning to make IRA contributions for 2019, the deadline has been pushed out to July 15.
We are open for business and ready to help!
And maybe you guessed it: the #1 question is: What’s going to happen in the stock market?
