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Why Young Investors Should Double Down

March 30, 2009 RSS Feed Print

Earlier today, I talked 401(k) investing strategy with John Carl of the Retirement Learning Center. His big tip for 20- and 30-somethings? Invest as much as you can bear: "Double-down your contributions if you can possibly afford it," he says. "If you're younger, focus on accumulating more shares--don't focus on the dollar amount."

Now, he's not talking about only buying stocks (stock funds), but they'll play a big role in how your portfolio will perform when the market bounces back. Simply put, "Right now, shares are on sale, so your $1 buys more shares than a year ago," he says.

So how much should you aim to contribute to your 401(k) to take advantage of market conditions? The max, which is $16,500 for the year. That's over $1,000 a month--a pretty lofty goal for most 20- and 30-somethings I know. "If you can't get to $16,500, get as close as you possibly can," says Carl.

For more on how much to contribute, see Answers to 5 Burning 401(k) Questions.

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I am glad you are putting your kid's money in to help the rest of us.
What did you say when Paulson and Bush were doing the same.
Maybe we should have put some of our social security payments in the stock market as Bush wanted us to do. Maybe if you had used birth control you could have been paying even more taxes.

Stevie of GA 8:27PM March 31, 2009

I appreciate the sentiment that you think 20-30 somethings should be doubling down in the market now. I am one of those thirty-somethings. Humor me, if the old people aren't interested in doubling down and investing in the United States of America. Why should I?
I do see were the writer of the article is going, but I think it's kind of funny that you are only leaning on the younger generation. Especially when Team Obama wants to nationalize 401k's. Besides that I thought our lord and savior Obama was suppose to take care of us in retirement. He is suppose to take of our daycare, housing, etc. Why should I save when I can live for the moment? Isn't that the agenda being pushed if this massive spending bill gets pushed through? Don't worry liberals, I have already broke into my kids piggy banks and sent the money to Obama and tax cheat geittner. I mean common it's only fair. By the way, make sure you bust open your kid's piggy banks too.

Joe of NY 8:04PM March 31, 2009

I appreciate the sentiment that you think 20-30 somethings should be doubling down in the market now. I am one of those thirty-somethings. Humor me, if the old people aren't interested in doubling down and investing in the United States of America. Why should I?
I do see were the writer of the article is going, but I think it's kind of funny that you are only leaning on the younger generation. Especially when Team Obama wants to nationalize 401k's. Besides that I thought our lord and savior Obama was suppose to take care of us in retirement. He is suppose to take of our daycare, housing, etc. Why should I save when I can live for the moment? Isn't that the agenda being pushed if this massive spending bill gets pushed through? Don't worry liberals, I have already broke into my kids piggy banks and sent the money to Obama and tax cheat geittner. I mean common it's only fair. By the way, make sure you bust open your kid's piggy banks too.

Joe of NY 8:04PM March 31, 2009

Why Young Investors Should Double Down

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