Should I dump money into my retirement index fund if the market craters?
October 13, 2013 11:38 AM Subscribe
I have a bunch of money I've been wanting to dump into a low-fee index fund all year. (It's my retirement account.) I've been holding off because of the whole budget/debt ceiling business that's been going on all year. It looks like events will be coming to a head this week. If the market totally craters, would that be a good time to buy?
posted by evil otto to work & money (16 answers total) 4 users marked this as a favorite
I know, I know, efficient markets, blah blah blah blah blah. But the conventional wisdom is that, if you're investing for the long term, it doesn't really matter when you buy. That said, it would seem prudent to take advantage of a dip in the market.
The only way I could see this going wrong is if the debt ceiling thing turns out to be such a big deal that the market permanently craters and never comes back up, or if the dynamics of the market change so drastically that the old rules -- such as the relative safety of index funds in the long term -- no longer apply.
And yes, the index fund is for retirement, so the money should be sitting there for at least the next 30 years.