Where is your money going?

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The stock market was down a little today but over the last few months the trend has been upward. As a matter of fact, from its low on March 9, the market is up over 2000 points (not bad for three months). I don’t want to get into the reasons why in this post, but needless to say, most people are pretty happy to see the bullish movement. I can’t say for sure where the market is going over the next six months, but I can tell you what I am planning on doing.

I am going t keep doing the same thing – contributing each month whether the market is trending up or down. I have talked before about the benefits of buying in a down market, so I am going to remain consistent with that advice. The one thing that will change is the amount I am contributing into my 401k. Recently, my company decided to stop supporting the pension plan benefit, so the money that was being put into the pension plan will be redirected into my 401k simply to take advantage of the company match.

Overall, we are still maxing out our two Roth IRAs, we are still contributing to the 529′s for our children, and I will now be putting in 6% of my gross pay into a 401k. The reason I can be so calm with this situation is because I still have time on my side. I am still several years away from retirement age, and I know that the market always comes back (or at least has always has). If you are close to retirement age, then you may not be quite so comfortable. What would I do in your shoes? I would contact an professional and get some who is looking out for your best interest to give me some advice. The only person I want making decision for me is me, but I want to be armed with all of the advice that I can get my hands on before making the decision.