Why Sticking with Your Investment Plan Matters—Even in a Down Market

By: Amy Getz, CPA, CDFA®

It’s never easy to stay calm when the stock market is bouncing around—or trending down. Watching account values drop can test even the most seasoned investor’s resolve. But if you’re consistently making auto deposits to your 401(k), IRA, or other investment accounts, continuing those contributions through uncertain times can still support your long-term goals.

One reason is a concept called dollar cost averaging. This strategy involves investing a fixed amount of money on a regular schedule, regardless of the market's performance. When prices are high, your money buys fewer shares. When prices are lower, the same amount buys more. Over time, this can help bring down the average cost of your investments.

Think of it like buying your favorite items on sale—if something you value is temporarily marked down, you can get more for the same price. Similarly, market pullbacks may allow you to accumulate more shares while prices are lower. And owning more shares can increase your exposure to future growth opportunities when the market improves.

Of course, there are no guarantees in investing. Markets can fluctuate for a variety of reasons, and past performance does not guarantee future results. But continuing to invest regularly helps avoid the guesswork of trying to time the market.

In uncertain times, it’s tempting to hit pause or make changes out of fear. But staying consistent with your investment plan can be one way to navigate the ups and downs without getting derailed. While no one can predict what the market will do next, maintaining a long-term perspective and a disciplined approach may help you stay on track toward your goals.

So, if you're questioning whether it still makes sense to keep those automatic contributions going when the headlines look bleak, know that consistency, not perfection, is often what keeps investors moving forward.