CARSON, Calif. – Scott Jacobs works at OSI Systems, an electronics company that offers a 401K and an employee stock purchase plan. He participates in both and is usually pretty diligent about checking on his investments.

“In normal times, for the 401(k), I’d say I check it every other pay period and for the stock daily,” said Jacobs.

Jacobs has a lot a stake because he invests 18 percent of his earnings. With the market fluctuating wildly because of the Coronavirus, he is keeping an even closer eye on at his 401K, checking it every week and his stocks portfolio every hour.

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“It’s been up and down, down, down, down then up a little bit, but mostly down,” said Jacobs. “The 52-week high was $117.21 the low was $57.13. Today’s low was $51.91 and it closed at $62.11. So it’s kind of like when do you want to buy? When do you want to get in?"

Brian Levy, a financial advisor and co-founder of BML Wealth Management in Irvine, says if you have a long period of time to invest, at least 10 years, now is a buying opportunity.

 

 

 

“We’re right now at late 2016 stock market prices so every week when you get paid, keep it going into the 401(k). You could even take it a step further to maybe front load it, right? So instead of going six percent of your pay, maybe you want to do ten percent of you pay right now to get more in at these lower prices,” said Levy.

Levy says people can rein in their investments when the market bounces back and the good deals dwindle. In fact, he says they will have to because people under 50 years old can only contribute up to $19,500 a year and add another $6,500 if you are 50 or older for a total of $2,600.

However, Levy reminds people it’s important to be prudent.

“Don’t gamble with money you can’t afford to lose. If you can’t afford to lose it, it shouldn’t be in the market to begin with or less of it should be in the market,” Levy said.

That piece of advice is something Jacobs struggles with every day.

“I kind of want to invest a little more cause I know it’s going to go up but I don’t want to put all my eggs in one basket and no have anything,” Jacobs said.

Levy also says before investing, people should have a rainy-day fund they can survive on for at least six months. Besides rent or a mortgage, the fund should cover gas, utilities, groceries and insurance.