Are Down Markets a Good Time to Invest More in My 401(k)?

By Stuart Robertson

With the COVID-19 pandemic and the big stock market drop from February, many Americans have been concerned about their 401(k) balance and if they need to adjust their 401(k) investments to cash or equivalent funds. We discuss this in another blog and video if this is weighing on your mind (FYI, this may not be the right move for many).

We are also receiving questions from across America that are nearly the polar opposite. If you tune into investing shows on CNBC, Bloomberg or other similar ones, you may hear that down markets like the one we are currently experiencing are potentially big buying opportunities. So, in this blog and video, we cover three questions:

  1. If I have the means, is now a smart time to invest more in my 401(k)?
  2. Should I invest more aggressively while the markets are down?
  3. Is it a good time to increase my Roth 401(k) contribution percentage?

For more information on Roth 401(k)s, check out Roth 401(k) – Meet Roth IRA's More Versatile Big Brother.

For more insights on investing in down markets, read Do I Adjust My 401(k) When Markets Are Down?

Wishing you well.

Meet the Author

Our low-cost 401k plans are easy to setup online and are supported by our 401k advisors and specialists. ShareBuilder 401k serves small business and medium-sized companies, as well as the self-employed. We offer Roth 401k, Safe Harbor 401k, Traditional 401k, and Solo 401k options. Your 401k plan is paired with investment management expertise and employee education to help you save more.