As a quick note, I realized that I’ve only been contributing 5% of my income to my 401(k). That’s the minimum I need to get a full company match, but I can still legally contribute much more.
While I’m hesitant to max out my 401k when we still have so much debt, I decided to bump up contributions to 10% of my income. Most financial advisors say to automatically save 10% and invest 10% each month. While we’re not saving, at least I’m not investing 10%.
Now I just need to make the change with Stacie’s contributions…
And if you’re wondering, I’m bumping up contributions because it’s a buyer’s market in stocks right now. Sure, I thought the bottom was 1,500 points ago, but looking at the big picture, we’re almost 5,000 points off the market’s high of just a year ago. We could continue to slide, slide, slide, but I have 30-35 more years to recoup those losses.
But if you’re in your 50s or 60s, I don’t advise contributing more to your investments, but that’s all I’ll say. Talk to a certified financial planner (not me) to find out what you should do. Who knows, your holdings might not be too risky (i.e. you might already be strong in bonds, etc. and weren’t hit hard). Your investment strategy really depends on your age, portfolio/holdings, and risk profile. You need a one-on-one with a knowledgeable person to analyze all those and decide the next steps.
Save More Money in 2018
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