Would like your opinion...

iVillage Member
Registered: 04-12-2007
Would like your opinion...
8
Sun, 02-15-2009 - 9:18am

I am thinking about reducing the contribution amount to my 401k and using the extra money to help build up my eFund.


Here are the particulars:

iVillage Member
Registered: 11-17-2007
Sun, 02-15-2009 - 10:50am

I think that you should cut down or even stop putting into the

iVillage Member
Registered: 12-29-2008
Sun, 02-15-2009 - 11:30am

I agree with Mary Ann, and for all the reasons she outlined.


I don't have a 401K (I'm self-employed...very part time...ebay).

iVillage Member
Registered: 03-27-2005
Sun, 02-15-2009 - 12:32pm

Even though things are tight right now, we chose to increase our contributions to our 401k.

iVillage Member
Registered: 03-26-2003
Sun, 02-15-2009 - 12:46pm

Well Robyn, I think you're wise.

I guess the question you should ask yourself is would your rather have a bird in the hand or two in the bush? kwim? You can have some cash in the bank and no debt, or money in a very risky account that you have a possibility of losing. I'm at the point you are. I want to hang on to my money and not take the risk right now.

I'm far from an expert but I've heard a lot of smart people say the market is going to go a lot lower and I tend to believe them. We're not contributing to our IRAs at this time, we're putting away cash in a liquid account just in case we need it. Right now we have 6 months of basic expenses in the bank, we've decided to keep going until we have at least a full year. After that we'll decide what we're going to do.

Sue


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iVillage Member
Registered: 01-23-2007
Sun, 02-15-2009 - 3:29pm

Robyn:

I think you have a good plan, especially since there is no company match. 3-6 months of living expenses would be a great thing to have, especially if it's easy to get to and relatively safe. I wouldn't stop contributing altogether; but, your plan sounds solid to me.

Dee









iVillage Member
Registered: 03-17-2003
Sun, 02-15-2009 - 3:42pm

I agree with ma2connor (Stacey).

Avatar for mrslove2000
iVillage Member
Registered: 03-26-2003
Sun, 02-15-2009 - 5:26pm
I am personally stopping my 401k contributions. I would rather have the

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iVillage Member
Registered: 04-12-2007
Sun, 02-15-2009 - 8:39pm

Thanks, everyone, for chiming in.