The biggest 401(k) mistake isn’t what you think.
Transcript:
REBECCA MEZISTRANO: And from your perspective, what is the biggest 401(k) mistake costing Americans millions in retirement?
DAVE RAMSEY: They jump in and out. They freak out when the market goes down, they stop, they start, they try to time the market. And you and I know that there’s tons of research on Wall Street about people that try to time the market, do not keep up with the person who’s steady. The steady investor. The tortoise beats the hare. Every time I read the book, the steady investor always wins. And so, in spite of my emotions, in spite of anxiety, and in spite of celebration, when things are great on the market. I’m a steady investor and I teach people is be a steady investor. Those are the ones that end up with the most money. Don’t try to time the market. The people that are trained to time the market don’t do it well. And you certainly don’t need to do that. You know, if you’re sitting at home in a standard job and you’re not sitting where you’re sitting every day, if you’re sitting on that floor, maybe what you’re doing. Maybe you don’t. But the data says that most people can’t do it.
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