Should I stop contributing to my 401K until the market settles back down?

If you keep adding now you be getting more cause the prices are dropping, in essence your buying the same stuff, but on sale 60% to 80% off!

I know if you went to Macy's wanting a pair of jeans that were 110.00 on Monday, but now on Thursday they cost 40.00 that's 60% off you would be all over them. Next year you'll be glad you did.

Keep buying, It's Called Dollar Cost Averaging.

If your employer makes matching contributions, it would be best to continue. For instance, if they match 50%, then you would be best off contributing unless your investments fell in value by 1/3 and stayed that way until you retire, which is unlikely. If they don't match (or for any amount you contribute above the percentage that they match) then maybe reducing your contributions for a little while would be a good idea, but it doesn't change much in the big picture because everything you have contributed so far is still at risk. To really reduce risk, you could shift your 401k from stocks to bonds or money market funds for awhile.

Depends on your age, if you are young or middle aged, continue investing in your 401 K, buy now while stocks are low. That will provide more shares in the 401k when the stocks recover. There is time for it to recover and make a large long term profit,

If you are in your late 50's or older, switch all new investments to savings instruments like bonds and CD's so you get a small profit on the new money while waiting for the 401k to recover. Plus it will be there when you retire in a couple of years instead of putting off retirement while you wait for the big payoff down the road.

i would not propose that. i might recommed which you attempt to fund greater on your 401k purchase low seel hi undergo in strategies. you nevertheless have a protracted term time horizon. Your life expenctacy is in all probability 20 plus years. think of of a 60 3 hundred and sixty 5 days previous provide up investment their 401k in 1988. in the experience that your eleigable fund a roth IRA too. i be attentive to its frightening and we are all lossing funds yet as Cramer says purchase purchase purchase.

I'm not a financial adviser by any means. I simply want to share something I have learned in Econ. class.

You are not really losing money in your 401K unless you are planning on withdrawing it from the market. Paper loss as indicated by the stock market losses can be gain right back when the stock market goes up. Unless we enter a depression that lasts for couple decades, keeping your 401K in the market should not have too much risk.

Hopefully we hit bottom as the market seems to be rallying today, it time to be contributing when the market goes down during these periods.

I would invest even MORE right now.

The stocks & funds will be dirt cheap for the next few years. Pile up the numbers. Then in 10-15 years when their values explode once again - you will be set up nicely for an early retirement..................

Stay the course.