Stock Market Volatility and Us
The stock market has been down in the past week or so. It's a change from the bullish market that it has been having in the past few years.
What does this mean to us? These down markets are great for us to buy shares from solid companies at a lower price than they had been. We have not been contributing to our retirement plans as much as before (at one time, years ago, I had my contribution set at 28% to my 401k at the time) due to changed circumstances and career shifts. However, we are back to 15% contribution rate to our 401K plans.
This will not impact our pension plans since they are on auto pilot; Koa will be vested in his union's pension plan in four years but we won't count that as part of retirement until it's at a substantial amount. Currently, it is at approximately $100+/month pension rate, lol. Hopefully, in 20 years, it would be $2000/month pension income. My pension plan is no longer active but it has a ten year vestment in it.
I wish i could contribute still to Koa's old HSA account where we have our tax-exempt municipal bonds but Koa no longer has a high deductible health plan. I currently am under a high deductible health plan but our current employer does not offer a HSA plan but only a FSA plan. I opted to put in $500 per year for now into the FSA since it only rolls over $500 to next year at the most. However, I've read that i can still enroll in a HSA even if the employer doesn't offer it as long as my current health plan qualifies. So, i will be looking into this once we have our debts squared away.
However, in a down market like the current week, we definitely want to continue to put what we can into the 401k plans. The more shares that we can buy right now will translate to some profits as the market comes back up.
Anyone else hanging steady on their investment contributions through market volatility?