401(k) contributions

[rrshock]

I looked at my 401(k) a little while ago and saw that it had dropped almost 15% in the past 30 days. I moved all the money to bonds, because it has lost around 20-25% over the past couple of months. Was that a hasty move, or is going to the bonds the safer move at this point?

[Awesome Sauce Malone]

This thing really isnt my cup of tea so I had my dad look at it.

I had lost overall about 300 bucks which isnt to bad considering ive only started it a couple of years back.
I changed it over to a stable fund and upped my contribuition to offset my losses.

Im sticking with the 401k as of now because I can really get into stocks/bonds at the moment my income wont allow it

[Maggie]

Re: 401(k) contributions

I looked at my 401(k) a little while ago and saw that it had dropped almost 15% in the past 30 days. I moved all the money to bonds, because it has lost around 20-25% over the past couple of months. Was that a hasty move, or is going to the bonds the safer move at this point?

I am no expert either; however, it might have been a hasty move. If in fact you don't need the money right now, i.e. it is a long term investment I would have advised that you leave it alone. We are all taking 401(k) hits right now.

[DoubleJayAlum]

Re: 401(k) contributions

I looked at my 401(k) a little while ago and saw that it had dropped almost 15% in the past 30 days. I moved all the money to bonds, because it has lost around 20-25% over the past couple of months. Was that a hasty move, or is going to the bonds the safer move at this point?

Depends on your age. If you are young, your dollar now buys more...

[AG1219]

Re: 401(k) contributions

I looked at my 401(k) a little while ago and saw that it had dropped almost 15% in the past 30 days. I moved all the money to bonds, because it has lost around 20-25% over the past couple of months. Was that a hasty move, or is going to the bonds the safer move at this point?

Depends on your age rr, if you are nearing retirement and you are comfortable with the amount you have now, then bonds would be an OK move. Now if you are more than 5 years away, I would leave it alone. The economy is a cycle, don't pull your money out at the bottom of that cycle (or what appears to be the bottom). Buy low, sell high. Not the other way around.

[InWuWeTrust]

i do this for a living...since 1906 we've had 31 recessions, and 31 recoveries..saying this time is different would be a huge financial mistake for yourself. this is probably our 32nd recession....

if you have five years or more until retirement, this is the best thing that could happen to you - a down market. increase your contributions, and focus on the number of units/shares that you have accumulated, because those prices will go back up - they always have.

if you are within a year or two of retiring, your portfolio should have already had the "reins pulled back", but if not, i would be cautious of moving all of my money to bonds now - ya don't get rich selling at the bottom.

btw, i find it encouraging that "uncle" warren buffett has made some significant investments lately.

if anyone has any specific questions, PM me... when you are watching TV, remember that those "celebrities" have no idea who you are, how much you make, how large your portfolio is, or what your personal goals are....so how can they provide you advice?

do yourself a favor, and turn off the stock market channels.

[SFL]

i do this for a living...since 1906 we've had 31 recessions, and 31 recoveries..saying this time is different would be a huge financial mistake for yourself. this is probably our 32nd recession....

if you have five years or more until retirement, this is the best thing that could happen to you - a down market. increase your contributions, and focus on the number of units/shares that you have accumulated, because those prices will go back up - they always have.

if you are within a year or two of retiring, your portfolio should have already had the "reins pulled back", but if not, i would be cautious of moving all of my money to bonds now - ya don't get rich selling at the bottom.

btw, i find it encouraging that "uncle" warren buffett has made some significant investments lately.

if anyone has any specific questions, PM me... when you are watching TV, remember that those "celebrities" have no idea who you are, how much you make, how large your portfolio is, or what your personal goals are....so how can they provide you advice?

do yourself a favor, and turn off the stock market channels.

I couldn't have said it any better...

:good: :good:

[RoyalShock]

I basically moved my allocations from 100% growth to a mixture of growth (25%), conservative growth (25%) and income (50%). I've saved a couple of grand in losses since doing that. My contributions are, for the most part, already maxed. When it appears the storm is over and the markets aren't so volatile. I'll probably shift half of the income funds back to growth.

BTW, I do NOT work in the financial sector. I'm just "Joe the Engineer".

[SubGod22]

Considering my age I'm not too concerned and don't plan on touching anything

[C0|dB|00ded]

If you weren't in cash 3 months ago it is too late now. Getting out of the market at this point will only solidify your losses for the foreseeable future. When fear subsides the markets will move sharply up but not enough to erase all this mess. Fixed income has outperformed the broad stock market over the last 10 years. You definitely want to be well diversified domestically as well as internationally and across several sectors.

Money markets earning 3.5% can definitely be your friend. It surely has been mine this year.

Do not let fear dictate your decisions, they will almost certainly be the wrong ones...

If you can't control your emotions: Buy when you are afraid, sell when you start feeling good.

Only accept a level of risk that will let you sleep at night.


T


...8)

[Shox21]

Considering my age I'm not too concerned and don't plan on touching anything

Me too, Sub, but I'm at the opposite end of the age spectrum than you. However, since making a very tidy increase for 2006 and again for 2007, I got a bit skiddish (since I am within a year or two of voluntarily kissing the 8-hour per day working world goodbye earlier than most), and in February 2008 moved my 401K into Money Market. I was chicken but it paid off as I have been extremely fortunate to not lose anything. Granted, it doesn't go up much, but I can live with that right now.

At your age, you have a lot of good working years ahead of you. My advice is to, when you can, put in the maximum contribution. You will be very surprised how fast it will grow and, after a short period of time, how little you miss that money not being in your paycheck. It's a great way to save.

[TxShox]

My father-in-law transferred his to MM last December. I tweaked mine in January, but held steady for the most part since I still have close to 30 years in the trenches.

[rrshock]

It is still in my 401(k), but I redistributed it to a bond fund. I heard some guys that went through the last down cylce say they had just recovered what they had lost, now they are losing again. Losing around 20% in 2 months made me cringe.

I can move the money back to other funds at any time, but was just watching it go away, so I tried to stop the bleeding.

Plus I was thinking about leaving my job next year, which would then give me the money that is in there to move to an IRA or something. I'm just now 30, but don't want to see it go so far that I lose everything that I have contributed the past couple of years, which is where it was heading it looked like.

[C0|dB|00ded]

It is still in my 401(k), but I redistributed it to a bond fund. I heard some guys that went through the last down cylce say they had just recovered what they had lost, now they are losing again. Losing around 20% in 2 months made me cringe.

I can move the money back to other funds at any time, but was just watching it go away, so I tried to stop the bleeding.

Plus I was thinking about leaving my job next year, which would then give me the money that is in there to move to an IRA or something. I'm just now 30, but don't want to see it go so far that I lose everything that I have contributed the past couple of years, which is where it was heading it looked like.

The majority of the downward movement in the market is most likely done. Considering that the Dow was at 14k just a few months ago and now is hovering around 8k, there really isn't that much further to fall. We will have another day or a week where the Dow gains a thousand or two points and you will not be in the market when it happens. If you would have got out when the Dow was at 14k I would be shaking your hand. As it stands now, if you get out now you will only solidify your losses. Historically, if you were out during the major rebounds in the market your overall return is MUCH lower than if you would have just stayed in the whole time. Market-timing is for suckers or those with very sophisticated market instruments.

"made me cringe" -focus on something else.

P.S.

When the market starts to rally you will lose your A$$ if you are 100% in bonds.


T


...8)

[EAGLE]

I have lost 12,000 dollars since the first of the year. I'm almost 69 yrs. old. It's to late for me to pull my money so I have decided to try and ride out the storm and hope I live long enough to regain most of it. And if I don't RS and his sister's inheritance will be a lot smaller. :) :) :) :shock: :shock: :shock: