Should I continue contributing to my ERSP or save cash?

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  • #112156 Reply
    Kendra

      With the change, and potentially complete control of the gov, I’m trying to decide if i should continue to dump almost 30% of my paycheck into my ERSP, or pull way back and start saving cash again.

      Musk basically said it’d be rough for awhile but better on the other side, so recession is likely.
      I need to make a decision soon and I’m torn.

      Thoughts?

      #112157 Reply
      Keith

        Invest long term. On the average it doesn’t matter who is in charge

        #112158 Reply
        Stephen

          Musk’s plan was never real.
          Trump is going to continue to run larger and larger deficits just like his administration did the first time around.

          #112159 Reply
          Tom

            Politics is just one of the variables. Don’t get distracted by this or any short sighted views.

            We are retired since 2019 and have increased our portfolio by 46% with a buy and hold posture. Always think long term.

            00% of our equity is Total Market Index Fund.

            Intentionality is a powerful thing.

            #112160 Reply
            Brandon

              Always invest when you can for the long run!
              But shet, after this orange, I may pull it all!

              #112161 Reply
              Joshua

                I wouldn’t make any decisions based on anything Elon Musk or any other one person says

                #112162 Reply
                Stefan

                  You are chronically online. Everything will be fine. The stock market is at record highs

                  #112163 Reply
                  William

                    Unchartered territory IMO. I’m gonna take the sugar high in the market for awhile and then get more conservative at some point.

                    That goes against everything I believe about trying to time the market, however, I feel this to be unprecedented times.

                    #112164 Reply
                    Carson

                      Investing while things are down would literally be the best time to do it… that’s why most of it just keep buying every time we get paid, up or down

                      #112165 Reply
                      William

                        Wait and see if Trump actually follows through with giving Musk the authority to make any of those decisions.

                        He (Musk) also said he was going to cut $2 trillion of government spending (what).

                        Elon Musk literally just says things and hasn’t really had to be accountable for any of it over the past decade, true or not.

                        So, I wouldn’t make a decision based on a single comment from him. Need more data.

                        #112166 Reply
                        Laura

                          What did you do from 2016-2020?!?
                          If you hate how Trump ran things then..then you should sell everything, get out of the market.

                          Seems you should already know your own answer.

                          #112167 Reply
                          Brian

                            Personally I’d just keep from investing too much in international. We’ve been through this before, and I made a whole lot of money last term.

                            #112168 Reply
                            Sarah

                              Don’t do anything. Turn off the tv. Invest for the long term. Time in the market is better than timing it. Always

                              #112169 Reply
                              Colin

                                Don’t change anything, stick to your plan, holding cash is timing the market, your timeline is 20-30 years, just keep investing regularly.

                                All of history is littered with failed attempts to time the market, just keep investing regularly, it gives you the best chance to achieve your goal of FIRE

                                #112170 Reply
                                Dan

                                  Strongly recommend you pull all your money out and put it in a box and bury it so you won’t lose. Unless you invest in Kleenex.

                                  I heard their stock may skyrocket!!

                                  #112171 Reply
                                  Jon

                                    Goes back to ‘how long is your investment horizon’ if the money isn’t needed soon, staying in the market is always the longer term winner (was thinking through same considerations, and am leaving it in the market)

                                    #112172 Reply
                                    Samuel

                                      My gut feeling tells me we are in a recession but I doubt it will be officially announced before Trump takes office.

                                      I recently lost my job and its a lot harder to find a new one, especially one that pays anywhere near what I was earning.

                                      #112173 Reply
                                      Kate

                                        I’m still going to continue investing at my current rate (still have 20 years until retirement), but I’m also going to cut any unnecessary spending, and build up my cash reserves as much as possible.

                                        #112174 Reply
                                        Kenneth

                                          Markets will continue up until policy changes impact them. Trouble in Europe is probably one of the biggest threats.

                                          #112175 Reply
                                          David

                                            TL;DR: Stay in and keep buying. Hedge with real estate and gold if nervous.
                                            Not cash. Cash is almost never the answer. Most of the actions the President Elect has been discussing while campaigning are inflationary because goods will simply cost more or the government will need to create more money to sustain a low tax environment.

                                            Regardless of what’s promised, any efficiencies gained will barely register when you look at their impact on the budget or (more so) impact on debt.

                                            So, inflation is going to happen.

                                            Now, do stocks lose value during inflation because the currency they are traded in is losing value?

                                            Not much. What would really cause a stock to give up value is that their revenue (in constant currency) is going down because consumers are buying less because their paychecks aren’t keeping pace with the cost of living.

                                            Unless you can see into the future when this will actually occur, you are better off turning this pullback in the market to a buying opportunity.

                                            You might consider an inflation hedge like gold or real estate if you haven’t.

                                            Oh, and having a lot of debt during periods of high inflation is a good thing. The money owed just like your money earned is worth less each day.

                                            Once your salary is adjusted (we all hope) for inflation, that debt will seem like less.

                                            #112176 Reply
                                            Dew

                                              I wouldn’t try and time the market. I think this administration will be great for the economy. However the market is also at all time highs, up a whopping 36% in the past year.

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                                            Reply To: Should I continue contributing to my ERSP or save cash?
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