Here's why a market correction could be a good thing for your 401(k)

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Here's why a market correction could be a good thing for your 401(k). (via CNBCMakeIt)

At first, experts say this correction may cause your 401 to suffer. But once the market bounces back, these corrections can be a good thing for investors — and especially "for both younger investors and long-term investors," says Ryan Marshall, a certified financial planner atFor younger investors, these corrections are considered "an excellent opportunity" because "they have a longer time horizon before they will need their money in a 401 plan.

If I polled my older clients, almost all wish they added to these market pullbacks in hindsight. Longer term investors view these pullbacks as opportunities and not setbacks.Additionally, for younger people, who generally have less money to invest, they typically have far less to lose than a more senior investor who has invested for many more years.

For those who plan on investing on a long-term basis, similar logic applies. So long as you won't be needing to cash out your investment money in the near future, these kinds of pullbacks will be made up over the long term as the U.S. market and economy recovers. They actually can offer great buying opportunities for long-term investors who are years from retirement.

 

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MakeIt Just be an investor and not a gambler. Also live with no debt. Listen to Dave Ramsey Suzie Orman, or whoever you trust with financial advice. Good Luck

MakeIt Huh what? Is it a correction or coronary virus? I’m confused lol

MakeIt Correct all 40lk plans or I may pay a visit with lawyers

MakeIt Buy low sell high

MakeIt Yours first

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