401K Losses Anyone?

Discussion in 'General Discussion' started by raian, Jul 15, 2008.

  1. Gosh, I don't know about you, but the stock market is just killing my 401K. I held out, hoping things would turn, and now after losing $7000.00 I moved all of my money into a stable value account this morning.

    I don't know when this is going to end.
     
  2. It is hurting for sure. I am planning to ride it out but who knows....
     
  3. That's usually the smart thing to do, if you're young enough/far enough away from retirement to let the market correct itself.

    During the end of the dotcom days, I knew people whose 401K accts. were down six figures in overall value, but they stuck it out for several years until their value recovered.

    Sean
     
  4. Nuteshack

    Nuteshack Guest

    i started a thread here many many months back ..."Market Melt down" i think. but no body wanted to hear it

    sorry Linda, but there's NO fix for this!
     
    Last edited by a moderator: Nov 7, 2008
  5. I hear ya, my portfolio has taken a huge hit as of late. Still young so riding it out.

    Good time to buy though with everything being on sale.
     
  6. FotoPhocus

    FotoPhocus

    311
    Jun 15, 2008
    Same here.. 26 and riding it out!
     
  7. Toby D

    Toby D

    Mar 7, 2006
    Iowaay
    Ride it out. Buy gold, The ETF GLD. You might wait till it comes back in to around $91.00/sh. The US will have to sustain inflation until the bank crisis resolves. There is little hope of any meaningful increase on rates in the near future. Therefore the dollar stays weak and inflation will keep the price of gold up.

    Also the ETF USO, US Oil Holders and OIH Oil Service Holders. Unless there is a viable alternative fuel in the immediate future, oil must go higher. Even if it did break today(down to 138.xx). Oil probably won't drop below 120.00, unless we are real lucky. Whatever we conserve is under intense demand somewhere else in the world.

    The economy will come back, it must, or money won't be our problem.

    Make your own decisions. These are just some suggestions for you to consider. I'll be buying the USO in the next few of days and hanging on, I already own the GLD.

    As they say, no one ever made a dime panicking.
     
    Last edited by a moderator: Jul 15, 2008
  8. Me too...losses but riding it out. I'm only in my 40s. Still looking for potential stock buys outside of 401K. Brutal market!
     
  9. Check out foreign funds if your plan offers them. I am 100% into a Morgan Stanley Indexed foreign equity fund that is doing extremely well and has been for several years.
     
  10. Hi, excuse my ignorance but what are 401K accounts?

    Similar problems over here but think we may be worse placed than you guys.


    John
     
  11. sonuj2

    sonuj2

    May 11, 2006
    Naperville, IL
    Employer sponsored Retirement funds.
     
  12. Pete

    Pete

    Jun 10, 2006
    Denver, CO
    There is an ad on TV.

    "Do you own an oil company? If you have a 401K or Mutual Fund then you do"

    What I want to know is why my 401K and Mutual Fund are not doubling, tripling and quadrupling with all the profits from the oil companies I own.
     
  13. I still have my 401K, just pulled it out of stocks for now. I'll reinvest it when the market swings. I'll soon be 50 and I don't have enough in there to lose any more $$$.

    John, 401K are our retirement accounts.
     
  14. Thanks Shekhar.
     

  15. Thank you Raian.
     
  16. Personal rule #1: never sell into a market that has already tanked.

    Interesting how folks react in such different ways to stressed markets. I lost about $69K in June and am seriously considering moving some cash into equities this month. This has worked well in past downturns, but who knows? :131:
     
  17. Whitedog

    Whitedog Guest

    I'm sixty-six so I've rode the market up and down before but this time looks pretty grim. I'm still riding though - not much choice at this point but I'm diversified more than I was when the .coms tanked. It seems to me that if we aren't at or near the bottom it won't matter where your money is.
     
  18. jafo

    jafo

    238
    Jun 11, 2008
    Chatsworth, CA
    I'm riding it out myself. Yes, we're losing money. But with each new contribution were are buying in at a lower price, and eventually we will regain the losses and then some. If you re-invest in a cash type fund, you are losing out on the potential gain, and very possibly buying high and selling low, not a good idea.

    You shouldn't move your money around... Unless you are near retirement, ride it out.
     
  19. You did not mention how old you are. IMHO, if you are not planning to retire within 5-7 years, you should have left your money in equities and avoided acting emotionally. You are selling low, instead of selling high. Market timing does not work for 99.99% of people out there.

    Over time, equities funds have shown consistent positive returns over time. You need to take advantage of dollar cost averaging for retirement accounts.

    When do you think you will jump back in? Good luck. Most equity funds make most of their yearly profit in the last half of the last quarter of the year. By moving your funds emotionally, you make money for your broker in the form of sales commissions.
     
  20. RichNY

    RichNY Guest

    I don't understand why so many are planning to ride it out- insane. The economy has just started to crumble- it is going to fall a significant amount more before it stabilizes and recovers. Best to take your losses now; stay liquid, and go back into the market when the stocks are really on sale. The more it falls once you are liquid the more opportunity to profit buying into the market at a later time.