With the economic conditions that many people are facing, there are often questions about whether or not one should quit putting money into their Roth 401K as a way to save money.  This can be a costly decision that could seem to make sense on the front end.

With the power of compounded interest, if you decide that you aren’t going to fund your 401K for whatever reason, you are taking your current money and reducing your future income.  By continuing to invest in today’s current market that is lower than it used to be, you are increasing your purchasing power.

By increasing your current purchasing power, you are buying more at a lower price than you used to be able to do.  This, along with compounded interest, will increase the value of your portfolio in the future.  Imagine the old saying of “buy low, sell high” really working in your favor in this case.

When you decide to continue or increase your contribution to your Roth 401K, you are building your future at a faster pace than what the current value of the money really is.  This will payoff in the long run if you can wait for the benefits to be paid at a later date.