I get it…i know that the stock market goes up and down…I know that it’s a strategy for the long term…I get it that things even out…but, dang, right when we’re paying spring tuition out of the (dwindling) 529s, headlines like this on at the Wall Street Journal right now – “Dow Drops More Than 1,100 in Biggest One-Session Point Decline on Record” – are not what i need.
oy.
Money you are going to use soon should not be in the stock market due to the volatility. Consider whether or not you have time to recover should the market dive.
Yeah, it sucks but one way to look at it is the market is back to the level it was around mid to late December. Easy come, easy go. 
A correction can provide a buying opportunity for any cash on the sidelines as well - Roth or IRA funding for 2017, for example.
Feel free to join the discussion here as well:
http://talk.collegeconfidential.com/parent-cafe/1651226-how-much-do-you-think-you-need-to-retire-and-at-what-age-will-you-and-spouse-retire.html#latest
It’s probably just one day. Hang in there. It’ll be better in a week.
I agree @doschicos, buying opportunity.
it’s all been so confusing. We started two 529s in early September 2008 when we had a small windfall. We did a combo of 60% growth stocks & 40% secure bonds. We lost much of the principal about 2 weeks after we started it in latter September and it kept getting worse in 2009…slowly slowly we recovered…we got back to the amount that we had first put in…so now we were even…we continued with the 60/40 and it began to grow over the last 4 years. Then we switched the proportion to 60% secure, 40% growth…but, man, i wish we had just settled for what we had.
So question. What are you more financially savy people advising your young adult kids to do? Mr R & I have 401ks and (I think) a Roth IRA (whatever one takes out taxes now rather than later) and the rest of our savings is in an interest savings account.
We were juniors/seniors in high school when the 08 market crash happened. We saw a lot of friends suddenly go from expensive private schools to the local directional. It has us (OK me because he doesn’t pay attention) spooked.
Just keep investing; put away as much as you can afford, at least as much as any match you may get from employers.
Your youth is an asset in the magic of compounding.
Stay the course if your investment horizon is far away. If you need the money a year or less from now, it should be in cash or its equivalent.
IMO, you should be in equities in your retirement accounts. for nonretirement accounts, it is hard to advise without knowing the amount and more about your financial picture. Keep at least 6 months living expenses somewhere safe but consider investing any excess. If not 100% than the majority. Your retirement timeline is decades away unless you win the lottery. If you’ve been sitting on the sidelines, see how the next day or two shakes out. It could be a time to go in.
Definitely don’t sell into the downdraft. Here’s a good read I posted on the other thread if you are tempted that way:
https://fivethirtyeight.com/features/worried-about-the-stock-market-whatever-you-do-dont-sell/
Oh dear, I wonder who’s to blame for this?
Look at your money as near term or long term. If investing in a 529 for an infant, you have time to recover and can put it in the market. If you need the money for next semester’s or next year’s tuition payment, it would be safer in a money market account that doesn’t earn much interest but protects the original funds. A portion of emergency fund needs to be highly liquid.
My retirement money is primarily invest in mutual funds, rather than individual stocks since I want to diversify my investments and I don’t have time to watch the market daily. Also, I have more than 10 years before retirement.
Sorry let me be clear: I’m not changing anything right now and won’t for a while (if at all). Just putting out feelers since again- spooked.
Young adults in their 20’s and 30’s should definitely be in equities in their retirement accounts. Personally I would do a very aggressive mix, like 90/10 stocks/bonds. You gradually shift to a more conservative mix as you approach retirement. It’s particularly important when you’re that early to look closely at fees and expense ratios for the various funds. Small differences in fees/expenses can really add up over a 30 year window.
This advice is assuming you already have a decent cash buffer for emergencies, like 6 months of living expenses. If not, then save that up first.
As far as the current dip in stocks, I personally am not worried at all. The underlying economy is strong and a correction was overdue. Things will wobble a bit then continue upward. Google “January stock trifecta 2018” if you need some reassurance.
Our kids’ long term investments are in total stock market index funds. Long term it has always been good. Up and down blips happen.
Good thing my SEP-IRA contribution will go in tomorrow morning rather than today … at least I hope so! Of course, the “historical” point decline makes headlines but the percent decline is what’s really important. Almost 5% in a day is bad but nothing compared to the 20+% decline in 1987.
The 2008 episode was really scary because it just kept on going and going. I bought some stocks at SP500 -15%, thinking correction. Then again at -30%, thinking bear market opportunity. One last time at -50%, thinking we’re all going to die anyway. That’s when we started hearing about overnight liquidity issues – really, really bad! In addition, my software sales were almost zero for that Oct and Nov. Gulp! I was at a conference right around the bottom at -66% (hard to believe) and everyone was talking. I almost talked myself into buying options on BAC with the few pennies I had left … figuring I’d be eating the soles of my shoes if it went under anyway so I might as well hope for a pop.
IMHO, the smart play is to have some money automatically invested into a target fund on a monthly or quarterly basis. Either that, or win a big lottery 
Yes to consistant contribution! Good point.
Attention K-mart shoppers. The stock market is having a sale!
Ok, I added some to my shopping cart… will wait for further discounts! 
@romanigypsyeyes – here’s what you do: Keep investing. Diversify – the money should be in different types of investments, including bonds as well as stocks. Choose investments that pay dividends and reinvest the dividends. If you opt for ETF’s or mutual funds rather than individual stocks, then you’ve got the fund managers working for you to figure out when to buy or sell individual holdings. For retirement, you should be in for the long haul - so that dividend reinvestment will work very well over time – when the stock or fund prices go down, you get more value from the dividend reinvestment – and then when the prices go back up again, you own more shares.
And think in percentages, not dollars or points. Dow is down 1175 points today - but that is less than 5%:
https://www.nbcnews.com/business/markets/new-fed-chair-sworn-dow-drop-450-points-n844826
You can also set stop limit orders on all your holdings to limit your total exposure to loss – but you don’t want to get stopped out too early.
Right now we are experiencing a correction – there is not an apparent reason for a plunge. In 2008 it was major banks failing – whereas now they are saying that the downturn is due to rising interest rates, but rising interest rates is a probably a good thing long term for now. (So you know, maybe you can put some of you money into CD’s and actually earn something that way, instead of using your credit card cah back rewards to earn “interest” off of your spending). So it makes sense to see an adjustment as people shift money around, but I think it should reach a new equilibrium soon. 2008 was a scary financial disaster – today is just a shift in personnel (Janet Yellen gone, Jerome Powell in)
If you are saving for retirement you can afford a lot of ups and downs.
And yes, it is a potential buying opportunity when this dip levels out.