While the slide in stock prices has likely scared off more than a few investors in the short-term, those looking to build long-term wealth have been smart to keep buying. That's because, historically, the stock market has trended steadily upward. Should that trend continue over the course of your life as an investor, down markets represent opportunities to buy stocks at depressed prices, rather than times to panic.
Regardless of what the market is doing in any given year, you'd be wise to invest consistently in a broadly diversified swath of stocks, Klontz says. Contributing consistently to your 401 means more money coming out of your paycheck. And if markets are down, as they have been in 2022, you may see a number on your portfolio that's smaller than the amount you put in.