I absolutely agree with continuing to invest in a 401(k) during hard economic times, even as we’re finding ourselves in a recession. While I don’t have personal past experience, I believe in the idea of buying while stocks are low. Historically, over time returns are better than socking away cash in “safe” investments like CDs. And right now, with stocks at (hopefully) at or near the bottom of a bad bear market, I don’t think there will be a better time to buy.
It’s not the time to put your money in T-bills and bonds. That bubble will burst, and it’s not a good idea to have too many eggs in one basket. Personally, I redistributed my already stock-heavy 401(k) portfolio further into stocks, shying away from the bonds. We’ll see how that goes.
And that talk of buying a house? We’re not so sure that’s a good idea right now, with the instability of everything from the market to income. I’d rather save more money toward a down payment, lessening mortgage payments and providing more of a cushion should things go south without warning.
