I often get asked this question especially when the markets are in flux. The simple answer is no. With investing, time is your friend and the more time you have, the better off you will be. In fact, if we actually mirrored our personal investments to the way we invest in a 401(K) plan, we would hardly suffer any pain from a market correction. Why? because with a 401(K) we are investing every time payroll is run. That means as the market falls, we continue to purchase investments at lower prices. You have probably heard financial advisors say “everything is on sale” or “dollar cost averaging”. Well both of those concepts apply here. The systematic consistent investment into a 401(K) plan allows for the long term growth and health of your portfolio.
The graph below shows what would happen to the value of your portfolio if you attempt to time the market and you miss the days that the market had its biggest positive moves.