Be it for an RRSP, a 401k, a Roth IRA or any other vehicle of retirement savings using the stock market, if you’re not going to be retiring for another 15 years or so, now is not the time to sell and try to re-invest later. In fact, it’s time to buy!

I’ve had a few people, both online and in real life, ask me whether or not they should sell the stock they own in their retirement savings and take the penalties to avoid the losses. What people don’t understand is that this money won’t be touched for at least 15 to 20 years (if you plan on retiring in the next five to ten years then this doesn’t necessarily apply to you and you may be better off investing in GICs for the remainder of your working life). The way to make money using the stock market is by buying low and selling high.

Right now, given the recession we’re in, people are selling low, when they should be buying low. In 15 years, the stock market will have recuperated and be higher than it is today, making selling stock now virtually useless and a great way to lose money. But by buying now, however, they’re buying low and increasing their chances of higher profits over the long term.

This is why you should be contributing as much as you’re able and allowed to into your retirement fund right now. This is the time when you’re going to be getting deals which will increase the worth of your fund over time. And by no means should you be selling anything right now if you intend to hold onto it for a long period of time. It’s Warren Buffet who says to buy when people get scared and sell when people get greedy. Well, people are scared and selling: this is when you should be buying.

Popularity: 19% [?]