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Should I stop depositing into my 401k?

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Heck no. If you have your emergency fund of 3-6 months then continue to invest. Remember it’s “Buy low, Sell high”.

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Google dollar cost averaging. This is the best time to be investing in your 401k. As long as you have ample savings (~3 months of fixed expenses) then you should feel confident investing in your retirement at discounted asset prices.

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Hi all, full disclosure - I’m bad at finances hence the question that may seem basic to you all. But should I pause my 401k deductions while the economy is in turmoil?

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Heck no. Everything is on sale. Plus if you don’t do 6%, you’re leaving free money on the table (the match)

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The opposite. You’ll be buying in at lower prices. If you’re able to, increase your contribution. I’ve doubled mine...

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Jesus absolutely not! This is the best time in a decade to invest. Buy into the ECAP program at BAH too. Max out both of you can afford it.

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HSA is not a bad investment option either. I use it as well. If managed correctly it’s actually the best investment plan at BAH for avoiding taxes. Do all three if you can, but personally I’d prioritize the 401k and ESPP.

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No.

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OP I agree with everyone else, and wouldn’t stop your 401k contribution. BAH has a decent match and if you have time on your side (which it sounds like you do) historically the markets tend to recover and make substantial gains after a downturn. Also, I was in a similar position during the gov shutdown a few years ago and wasn’t as confident with finances so I started reading everything (books, podcasts, YouTube, etc.). Once I started figuring out what strategies made sense to me I could put together a plan which has made this downturn a lot easier to ride through. The personal finance bowl is a great place to get started too

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God no. Why would you do that? First BAH matches you it’s free money! Second the stock market is about 10-15 year gains not 3 month losses. If you can’t handle a recession you probably shouldn’t be investing in stock. Many stocks are very low that shouldn’t be so investing now will net you good gains later. And your current losses will recover. If they don’t the America as a whole is screwed not just your 401K. Here is a tip... outside of your 401K buy Booz Allen stock you get a discount and Chubb insurance stock. I work at one and my wife at the other. They both very low from where they should be. Will our partners lose their bonus probably but will our backlog of GOVERNMENT work suddenly go away NO!!! Last year we generated record backlog. That is not commercial work. Smaller consulting firms or firms with less cash on hand or more dependent on the commercial work might suffer, but we won’t. Long term there is no reason for our stock to suffer. Even with all the losses this year I am still in the green overall. Right now we are sitting at $68/share we should be at $80/share. It will go back up and probably even higher down the road.

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What’s Chubb? We only receive discounted bah stock

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Nope

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No.

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Silly question as well, I think OP means reduce contributions now and increase later part of the year when market stabilizes (maxing the cap for the year). Though reading the comments above one should do the opposite, increase the contributions now? Sorry for the ignorant question, limited on finance knowledge

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I think you’re doing better than most. Many are pay check to pay check. It’s all about how much risk tolerance you have and whether you’re able to cut costs if things go south.

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No. Since I’m saving money on transportation each month I’ve increased my contribution. As another poster said: buy low, sell high.

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