Anybody checked their 401Ks this week?

[GodFearinGunTotin]

I'll bow out now...now that we're entering TMI territory.

 

[SnoopLoggyDog]

Checked mine today. Down 10K. Not a whole lot of choices on where to put the balance right now.

 

[churchmouse]

Let's not lay this at the feet of some politician(s). They have done exactly what we, as a nation, asked for...not what maybe, I asked for or CM asked for or Alpo asked for. But as a result of our elections, we have selected people that have done what they thought, what we clamored for. You might blame this on "big business"...well who was it that went to Walmart instead of the mom and pop shops back when we still had mom and pop shops? Who was it that, when confronted with various choices for an item, tended to pick out the cheapest (regardless of where it was made) item of the lot? Walmart, Lowes, Home Depot, Costco, Target, etc. just gave us what the consumers were demanding. We all had (and still do) our justifications for our purchases and our votes but "we" did this.

True "But".........Big Gov. is printing money like mad. I never asked for this.
They are in debt to china for numbers/amounts we can not even fathom. They are trowing money at the electorate buying votes through a welfare state in attempts to stay on top of the power structure. They borrow/spend like a bunch of crack addicts.

This falls as much on them as on us.......JMHO

And the electorate did put these numb skulls in the seats of power and they keep them there for some reasons that just make no sense to me.

I see your point my friend. I really do. We can be our worst enemy's but not all of this falls on us.

 

[Double T]

I'm 31. I could start putting 4% into my 401k and my employer would match half. So basically 6%. I'm wondering if it is even worth it or if I should just start putting money back and buying other means of "retirement" funds.

I really want to pay tax NOW and not later also. So there is that

 

[foszoe]

Take the match, fuND a ROTH

 

[ziggy]

Buy stocks, be patient, dollar cost average. You have time on your side. When everyone panics, buy. When seemingly everyone is euphoric and believes stocks will go to the moon, sell. It is not easy, but it can be done. Aside from just putting money in the old 401k on a regular basis, be willing to try some other strategies with some of your $. The hardest thing to do is to go against the crowd.

 

[Kutnupe14]

I'm 31. I could start putting 4% into my 401k and my employer would match half. So basically 6%. I'm wondering if it is even worth it or if I should just start putting money back and buying other means of "retirement" funds.

I really want to pay tax NOW and not later also. So there is that

You're giving away free money. And you're young, look into a Roth.

 

[jd4320t]

I'm 31. I could start putting 4% into my 401k and my employer would match half. So basically 6%. I'm wondering if it is even worth it or if I should just start putting money back and buying other means of "retirement" funds.

I really want to pay tax NOW and not later also. So there is that

Like others said, at least contribute enough to get the match.

 

[Expat]

I moved 60% of my 401k into the cash account for now. If it is a full fledged correction, we have a ways to go yet to hit the bottom.

 

[seedubs1]

Oh ****!!! The sky is falling!!!

Oh wait, this is what the market does. As always, I'll start buying since the market is down.

 

[foszoe]

FBIOX

Still up 70%

 

[CountryBoy19]

I'm 31. I could start putting 4% into my 401k and my employer would match half. So basically 6%. I'm wondering if it is even worth it or if I should just start putting money back and buying other means of "retirement" funds.

I really want to pay tax NOW and not later also. So there is that

As stated, ALWAYS contribute enough to get all the matching... that's free money right from the start. If it's a dollar for dollar match you're getting 100% gains the instant you put the money in, which then requires a full 50% drop in the market to get you back down the break-even point. IE, Even if you encounter a massive market correction and you get down to that point its almost a sure thing the market will return and you'll gain it all back.

That being said, every bit the market drops is that more opportunity for it to go back up. When I see the market dropping my thought isn't "Oh crap, I better sell". I think, "Sweet, time to start buying more!!!"

That being said, I've been waiting for this correction. I saw it coming 6 months ago. I couldn't predict when it would happen but it was common sense that it was coming sometime this year or next... I didn't sell anything, but I haven't been buying for the last 8-9 months either. I've been putting all my money aside waiting for the correction so I can start dollar cost averaging into the market... we're almost down to my threshold to start easing into the market. If we drop a lot more from here I won't be "easing into" anything, I'll be throwing every penny I have at the market...

 

[smittygj]

Checked today, down 7K this week alone.
Not sure if I should leave it alone or put it all in a money market acct (still within 401K).

 

[CHCRandy]

FBIOX

Still up 70%

How you figuring that?

 

[Alpo]

You think the stock market just magically goes up and up. Markets rise and fall, that is what they do. I've heard "experts" saying for a while that a correction was coming.

The problem right now is that with interest rates at 0, there is no incentive to put money anywhere else. That has the stock market at unsustainable levels.

The "you" you are referring to? Is it the "Royal You All" or are you speaking to me?

And while "You" may be listening to experts, I got out of almost everything when Apple was in the 130's. I've still got a natural gas stock and ETF in gas, because winter is coming and it's an easy ride.

And if "you" think the market is where to put money right now, then you missed the real estate turnaround.

 

[BehindBlueI's]

Checked today, down 7K this week alone.
Not sure if I should leave it alone or put it all in a money market acct (still within 401K).

Cashing out on the downside locks in your losses. Are you going to buy again on the rise?

That's the opposite of how to prosper long time.

 

[smittygj]

Cashing out on the downside locks in your losses. Are you going to buy again on the rise?

That's the opposite of how to prosper long time.

Yes, I know, it's not wise to do so, but it sure sucks to watch your money dwindle down thinking that you could
theoretically move it to a money market fund to shield it. However if I do that, I take the chance of missing
out on the next upswing. I read something last week while mulling this over that said if you had withdrawn your
money before the big drop in '07/'08 and had put it back in when things started really climbing over the last few
years, you would only have made about 3.5%, but by leaving it in and "letting it ride" you took advantage of
approx 14 big upswing days in the market which in turn would have made you something more along the lines of
about 13%. Guess I'll let it ride......

 

[OutdoorDad]

I'm 31. I could start putting 4% into my 401k and my employer would match half. So basically 6%. I'm wondering if it is even worth it or if I should just start putting money back and buying other means of "retirement" funds.

I really want to pay tax NOW and not later also. So there is that

lets set aside the tax advantages for a moment (although they are substantial).
If you aren't taking advantage of the full match, you're walking away from a 50% internal rate of return. Guaranteed by your employer.
If you put in 8%, you have dropped that return to 25%. Which is still the best ride in town. ***

Then, when we add in the pre/post tax math, the advantages of a 401 k really shine. (There is a good reason it's called a benefit).

In your early years, the tax benefit is designed to make it easier to save. It only "costs" you 75 cents of every dollar in "missed" income.

So my advice would be to invest 9% in the 401k, then (if you are a Hoosier and have kids- put the next $5k into the state's 529 plan and claim your $1k tax credit -which gives you a 20% return before investment gains) And only after those two have been done, begin looking for other funding vehicles. And I suspect after you do the math, you'll return back to the 401k for a few more dollars.

Although starting the 5 year holding period on a Roth is a good idea. So perhaps a small investment in a Roth should be considered.

 

[foszoe]

How you figuring that?

My statements

Up about 30% ytd

 

[spec4]

I retired at age 59. For many years I put the max in my 401K and my employer gave a match up to 4%. It served me well. Since retiring the market has crashed twice. What did I do? Nothing. If you sell now are you smart enough to know when to get in to ride it up again? My asset allocation allows me to live several years without touching a stock.