401k-Holding fast but..........

[cdaigle430]

Its like being on a tractor with no brakes and you see the ravine ahead in the not too distant view. Do you turn off quickly and risk flipping over the tractor or do you keep going strait hoping the tractor will stop.

Was planning on retiring this month or in two years early but wow....talk about a derailment.

 

[RNeumann]

The stock market (S&P 500) has averaged about 12% over its lifetime. It’s obviously a tough time but it will turn. It was up something like 70% in the last 3 years.
It’s a roller coaster for sure- but the only people who get hurt on roller coasters are the ones who try to get off early.

 

[Roadworthy]

Kick the tractor out of gear and coast. I retired just after the dot com bust. I had lost roughly half of my 401K and wasn't real happy about it and was hoping I could survive. I pulled what was left of my company 401K and rolled it all into an IRA for no tax hit. Over the next few months the money reappeared. My advice - sit on it. The market will be back. Think about it. The companies continue what they're doing. Nothing has really changed appreciably. The perceived stock values have absolutely no connection to the companies behind the stocks. Stock value can drop on the rumor of less earnings than anticipated. They float all the thime.

 

[hawkeye08]

My decision to retire was made before Feb 5, I applied to a program that had exit dates of March 20, May 1, Oct 23 (no choice, exit date determined by executive management). I was accepted into program with exit date of March 20.. we've lost a big chunk of our 401k, much due to not having moved it from growth to sustain investments. We have to have some income starting in the 6 months or so from it. We are weighing when to apply for social security early, etc. Lots of moving parts, but 401k will need some time to recover. We will take a few months to figure things out, then know if I need to find a job (current position of company is that retirement is done deal, no turning back now). Sign the release, get a small payout, pray for no major medical issues and be very intentional on spending..

 

[riptides]

My decision to retire was made before Feb 5, I applied to a program that had exit dates of March 20, May 1, Oct 23 (no choice, exit date determined by executive management). I was accepted into program with exit date of March 20.. we've lost a big chunk of our 401k, much due to not having moved it from growth to sustain investments. We have to have some income starting in the 6 months or so from it. We are weighing when to apply for social security early, etc. Lots of moving parts, but 401k will need some time to recover. We will take a few months to figure things out, then know if I need to find a job (current position of company is that retirement is done deal, no turning back now). Sign the release, get a small payout, pray for no major medical issues and be very intentional on spending..

Well sounds like you have a plan. Good for you. I am sure you will be fine.

 

[KennyG]

The best advice is to stay invested and ride it out. The real issue is, have you planned to be able to do this? You should have at least several years living expenses in pensions, social security and stable (non market) investments. I like being in the position to go at least 5 years without taking money out of equity investments.

 

[RalphVa]

Its like being on a tractor with no brakes and you see the ravine ahead in the not too distant view. Do you turn off quickly and risk flipping over the tractor or do you keep going strait hoping the tractor will stop.

Was planning on retiring this month or in two years early but wow....talk about a derailment.

Should have maybe 50% bonds. Our bond fund that the wife started with the measly money we got from something about 20 years ago is about 10 times higher now (not recently, but it's up, not down).

Ralph

 

[JerryK]

401K's are a rip off, anywhilst. The only one that consistently makes money is the person managing the 401K. The person putting the money into the 401K is last at the trough ....

 

[riptides]

401K's are a rip off, anywhilst. The only one that consistently makes money is the person managing the 401K. The person putting the money into the 401K is last at the trough ....

Which is why the majority of corporate America offers them to their employees right. Jeesh.

 

[Diggin It]

I haven't even looked in the last month or so. I only hope that when China gets back to work in a couple of weeks, the whole mess blows over and the marketeers get their senses back. It took years to come back from '08.