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as a financial illiterate stuck with a 401k, what do i do? (moist.catsweat.com)

submitted 4 months ago by originalucifer@moist.catsweat.com to c/finance@beehaw.org

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as many americans forced to run with a 401k because we dont know any better and its the 'path of least resistance' to a retirement account... what do we do in the face of a dying democracy and economy?

id love to move it to some 'foreign' investments, but is that even a possible option? do i just hope and wait for stability to return at some point in the future or is it hookers and blow time?

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[–] Nougat@fedia.io 19 points 4 months ago

The whole point of having a 401k is to keep plugging away at it, slowly but surely. That way, the ups and downs affect you less, because of dollar cost averaging. If you're a ways off from retirement, your dollars now buy more shares than they did last year this time.

The expectation is that the market will rebound, and then you will gain quite a bit on what you have invested today.

On the other hand, if shit hits the fan, that money wasn't going to do anything for you anyway.