since s and p 500 is so up and down ,is that a good idea?
2007-08-17 15:37:49 · 4 answers · asked by uclahonk 2 in Business & Finance ➔ Personal Finance
Your 50% allocation to S&P 500 each week is a good plan. With your dollar cost averaging, you will do well over the long run. Don't worry about the ups and downs, when the price is up, you buy less shares and when it is down you buy more, resulting in a good average price. Keep up the good work, you will be pleased with the results when you retire.
2007-08-17 15:46:44 · answer #1 · answered by oakhill 6 · 1⤊ 0⤋
S&P 500 index fund is a good, mainstream choice. However, you don't mention what other options your 401(k) offers or what you do with the other 50% of your money. It would also help to know your age and how close you are to retirement. Your best asset allocation is heavily influenced by your stage of life.
2007-08-17 16:02:53 · answer #2 · answered by Charles E 3 · 2⤊ 0⤋
Great idea for a 401k. Remember: 401k is supposed to be long term money and the stock market has a history of being very profitable over the long run. S&P index funds get you the average market move without picking individual stocks. So, keep stuffing your money into the S&P fund and don't worry about the little wiggles.
2007-08-17 15:44:51 · answer #3 · answered by Ted 7 · 2⤊ 0⤋
beats the heck out of spending it all
:-)
2007-08-17 15:48:05 · answer #4 · answered by Spock (rhp) 7 · 1⤊ 0⤋