401k Owners !!

[RSKY]

NOW is the time to up your 401k contribution for a couple months. The market has taken a huge hit and dropped 4-8% over the past week. What that means is that the average price of a share of stock has dropped that much. Some has dropped more, some less.

But the market ALWAYS comes back. So the mutual fund that lost 8% of its' value yesterday will quickly regain that value during the next year if the market follows its' usual trend.

So every dollar you put in now will buy more shares that SHOULD quickly regain their lost value. That means a dollar invested will jump to a dollar and a dime very quickly.

I missed this time. I didn't expect a correction until the end of the year. So I am hung out and still invested in growth funds. The last correction before this one was a year late in my reckoning. So I went heavy in value funds and kept too much in bonds. So I didn't earn as much as I should have for a year.

Oh well. I have still made out like a bandit since I retired in 2011. I have withdrawn and spent nearly half the value of what I had at that date and was well on my way to regaining the original sums. And NOBODY can predict what the market will do. They can guess, and hope, buy not successfully predict.

Take everything I have said above with a grain of salt and make your own decisions. I am basing what I have said on events over the past thirty years.

Clear as mud, isn't it.

RSKY

 

[JPRambo]

I am a 401K plan owner. I am trying to retire in 13 or 14 months. I think I will give the market a month or so before uping my contribution. I have over the last 6 months switched my account to a much more safe group of stocks so I should not see to much fluxuation. But more money in my retirement will be good.

 

[plowhog]

NOW is the time to up your 401k contribution for a couple months .... NOBODY can predict what the market will do. RSKY

Understood!

 

[TnAndy]

But the market ALWAYS comes back.

While generally true, you fail to mention there have been periods where it takes nearly a decade to do so.

And had you bought into the Japanese Nikkei (their "Dow") in the 90's at 39,000, you would still be waiting....it's around 23,000 currently almost 30 years later.

 

[RSKY]

While generally true, you fail to mention there have been periods where it takes nearly a decade to do so.

And had you bought into the Japanese Nikkei (their "Dow") in the 90's at 39,000, you would still be waiting....it's around 23,000 currently almost 30 years later.

This is true. I was thinking of my daughters who are 30 & 35 when I wrote the post. A few extra dollars put in now can make a huge difference in 20-30 years.

The guy posting above who is retiring in a year should not go hog wild changing everything.

A 25-year old can make the difference between retiring at 60 or 65 by increasing his contributions during market downturns.

As they say, I am not a doctor, I just play one on TV.

I am not a stock expert, I just rely on what has worked well for me over the years.

RSKY

 

[NorTracNY]

Changing the amount input isn't as nice as shifting the amounts or rebalancing. This small correction isn't enough for me to do much though. In the past I will move the little I have in more conservative investments into the more aggressive which have just taken a large hit.

 

[teg]

....But the market ALWAYS comes back.

Yea, but it can always go down even more... a whole lot more!

 

[TractorGuy]

And NOBODY can predict what the market will do.

RSKY

It's going to crash and we will have another full blown recession by the end of 2019.

 

[RSKY]

It's going to crash and we will have another full blown recession by the end of 2019.

I certainly hope not.

Everything I have read says that the crash in 29 or 30 or whenever started out no worse than other corrections that had come before it. The problems were twofold. First, many people were investing in the market with borrowed money. Second, the government jumped in and tried to help and of course made things much worse.

Hopefully this will never happen again.

RSKY

 

[KubotainNH]

Looks like half of yesterdays drop was gained back today. Hard to move things in that small amount of time.

 

[cdaigle430]

I am going to hold steady for a little while longer

 

[Ford850]

I don't feel comfortable taking investment advice from a guy named RSKY.

 

[3Ts]

I don't feel comfortable taking investment advice from a guy named RSKY.

Oh, I don't know, crossing the street is RSKY also. :laughing:

I've been watching RSKY's posts and his advice seems pretty good to me. I was unaware of this forum when I started out in investing. For that matter, I was investing before I ever got a computer, yet I've been doing the same kinds of things he's been doing and it's turned out well for me.

 

[TXHF]

It's only a loss if you move investments or cash in. Loss is on paper... it will come back. Whatever the panic, the crisis will be over. I've been riding it out for years and am well ahead of my planned retirement. Having a beer and not thinking about it...

 

[RSKY]

I don't feel comfortable taking investment advice from a guy named RSKY.

I don't blame you. I hardly ever take my own advice. At one time I thought about changing my name to RiSKY but it was too hard to type.

I guess it could have been what my wife calls me but then it would be ******* all the time.

RSKY

 

[RSKY]

The best investment advice I have ever received is something I have not done. It was when in your twenties put 80% in higher risk growth funds and 20% in value funds. When you hit thirty change the percentage to 70/30. Do this at age 40,50,60 and so on. I have not done that but would probably been better off if I had.

RSKY

 

[NorTracNY]

The best investment advice I have ever received is something I have not done. It was when in your twenties put 80% in higher risk growth funds and 20% in value funds. When you hit thirty change the percentage to 70/30. Do this at age 40,50,60 and so on. I have not done that but would probably been better off if I had.

RSKY

I've heard this before. It's pretty good advice, but really doesn't make sense to me. You should be fully aggressive until you're close to retirement. I don't think there should be any different between 20s and 30s. For those that aren't planning on early retirement even the 40s should be the same as the 20s and 30s. 10-15 years before retirement is when I believe you should start to adjust.

There have only been 2 10year spans where the market did not increase. In those 2 cases, they were ahead in year 11. I also keep the philosophy that if the market is down, those that have a lot more money than me are hurting more than I am. As mentioned, the people that get into trouble are those that borrow too much.

 

[RSKY]

I've heard this before. It's pretty good advice, but really doesn't make sense to me. You should be fully aggressive until you're close to retirement. I don't think there should be any different between 20s and 30s. For those that aren't planning on early retirement even the 40s should be the same as the 20s and 30s. 10-15 years before retirement is when I believe you should start to adjust.

There have only been 2 10year spans where the market did not increase. In those 2 cases, they were ahead in year 11. I also keep the philosophy that if the market is down, those that have a lot more money than me are hurting more than I am. As mentioned, the people that get into trouble are those that borrow too much.

I think this advice was for people who look at their funds once a year or so. Somebody who keeps up with it better can do better. But the ones, like I was at first, who never look would be better served by this.

Plus that advice was probably before the internet made instant access to the market and trading.

Still for some people this would be good advice.

RSKY

 

[NorTracNY]

I think this advice was for people who look at their funds once a year or so. Somebody who keeps up with it better can do better. But the ones, like I was at first, who never look would be better served by this.

Plus that advice was probably before the internet made instant access to the market and trading.

Still for some people this would be good advice.

RSKY

All true and I'm not like others. I have no trouble separating out my emotions from the financial planning (primarily because of the philosophy mentioned before). I would be fine dealing with a crash when out more than 10 years out from retirement. I know a lot of folk think losing 100K in worth in a week would kill them even though they don't need the money and know it'll come back. Study after study have shown that people lose out when they try to time. They sell late and buy even later.

 

[RSKY]

All true and I'm not like others. I have no trouble separating out my emotions from the financial planning (primarily because of the philosophy mentioned before). I would be fine dealing with a crash when out more than 10 years out from retirement. I know a lot of folk think losing 100K in worth in a week would kill them even though they don't need the money and know it'll come back. Study after study have shown that people lose out when they try to time. They sell late and buy even later.

Yep, let it ride. And don't get upset when it makes a dive.

If there is a 50%/50% chance of picking right/wrong there is a 90% chance you/me will pick the wrong one.

RSKY