Sharon in SC Posted January 10, 2009 Share Posted January 10, 2009 Are y'all with 401Ks still planning to leave your money in? :confused: This is so totally demoralizing to have been so very careful all these years to fully fund these accounts and watch them evaporate before our very eyes!!!! Quote Link to comment Share on other sites More sharing options...
PariSarah Posted January 10, 2009 Share Posted January 10, 2009 That would only compound the problem, wouldn't it? Pulling out now would just lock in the losses, and taxes and penalties would take away even more. I feel really bad for people who have been saving all their lives and are retiring this year. (Or who've saved in an EIRA and are going to college this year.) But for those of us who are a ways away from retirement, this is really not much of an issue. It may be two or three years, or it may be five or six, but the stock market will recover. Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted January 10, 2009 Share Posted January 10, 2009 We are keeping our money in our 401K and are still adding to it automatically as set up with dh's job. But we also had private IRAs for each of us. Those we are not adding to right now. We are choosing to invest that money in keeping our debts down and in putting some into long-term CDs. Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 10, 2009 Author Share Posted January 10, 2009 That would only compound the problem, wouldn't it? Pulling out now would just lock in the losses, and taxes and penalties would take away even more. I feel really bad for people who have been saving all their lives and are retiring this year. (Or who've saved in an EIRA and are going to college this year.) But for those of us who are a ways away from retirement, this is really not much of an issue. It may be two or three years, or it may be five or six, but the stock market will recover. I think the real discouragement came when we realized if we had taken the money out earlier in the year when all this started snowballing, we would have lost only a little more in taxes/penalties than what we've lost to the market. (dh has one colleague who did withdraw everything back in the summer). Problem is - how much more will we lose to the market in time to come? Certainly, if we took it out now, the problem would most definitely be compounded. I'm with you in feeling for those who are at retirement's door now. :-{ Thankfully, we have at least 10-15 years before we would seriously be looking at doing so but we do have kids to educate in college sooner than later (older dd is a sophomore in high school). I think, more than anything, I just needed to vent though I did want to take a pulse on the hive mind regarding all this! :001_smile: Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 10, 2009 Author Share Posted January 10, 2009 We are keeping our money in our 401K and are still adding to it automatically as set up with dh's job. But we also had private IRAs for each of us. Those we are not adding to right now. We are choosing to invest that money in keeping our debts down and in putting some into long-term CDs. Your post raises another question. What about the "non-retirement" investment funds? Does the community here feel it still prudent to leave/add to those funds or totally regroup and do something altogether different with that money? Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 10, 2009 Share Posted January 10, 2009 (edited) Yep. Mine lost 47%. :glare: It'll recover. I'm only 38. (It WILL recover... I'm only 38... itwillrecoveritwillrecoveritWILLrecover... that crunching noise you hear is me breathing in a paper bag) It's going into a target-date fund, though, I think. Our 401k program was ended, so mine was liquidated for rollover purposes, not for "getting out" purposes and I'm simply not sure how I want to invest it in the new account. Hey... MAYBE the market will tank even more before the check gets deposited at Schwab! :D What about the "non-retirement" investment funds? Does the community here feel it still prudent to leave/add to those funds or totally regroup and do something altogether different with that money? I would keep investing. The market ALWAYS recovers over the long haul. I would, however, be concerned about the diversity of funds and would not buy single stocks... essentially, invest for the long-term and be leery of any one company or sector factoring too heavily in the investment. Edited January 10, 2009 by MyCrazyHouse Quote Link to comment Share on other sites More sharing options...
CookieMonster Posted January 10, 2009 Share Posted January 10, 2009 We are still contributing monthly to our 401K plan. The market will eventually recover. It may even see another downturn/upturn cycle before we reach retirement. As we near retirement, however, our investing will become more and more conservative. This will buffer us from 'losing it all' if a downturn occurs right before we had planned to retire. Quote Link to comment Share on other sites More sharing options...
Krista in LA Posted January 10, 2009 Share Posted January 10, 2009 I just got my IRA statement and it lost almost a third of its value. I'm in it for the long haul though so it doesn't really matter right now. It is kind of depressing though. Quote Link to comment Share on other sites More sharing options...
kalanamak Posted January 10, 2009 Share Posted January 10, 2009 Y (It WILL recover... I'm only 38... itwillrecoveritwillrecoveritWILLrecover... that crunching noise you hear is me breathing in a paper bag) :lol: I wish I'd moved my employer-program investments into the savings pool, but I didn't see this getting THIS bad. Oh well. I'm believing it will recover and I want to be there when it does. I continue to contribute. Quote Link to comment Share on other sites More sharing options...
jg_puppy Posted January 10, 2009 Share Posted January 10, 2009 Have you read the free Suze's download that is Oprah.com? I have read part of it and it has been an interesting read for me. Granted I don't know much about stocks so I got more out of it than others might, but the price for the book was right. Jan Quote Link to comment Share on other sites More sharing options...
Kanga Posted January 10, 2009 Share Posted January 10, 2009 (edited) It is only a loss on paper unless you pull it out - then it becomes a real loss + more lost in taxes and penalties. I would leave the money where it is and keep contributing or even increase your contributions because now you are buying low. In five years you will have made back your losses plus profitted from buying low. Learn from your mistake and the next time we hit record highs (several years from now) move some of your money from the stock fund into a low risk fund (more secure, but lower profit). Most 401K's have several different funds to choose from. Edited January 10, 2009 by Kanga Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 10, 2009 Share Posted January 10, 2009 :iagree: Mine lost as much as it did because it's in "aggressive growth" funds, which have higher risk attached. When it's reinvested, I'm leaning toward a target date fund that naturally moves from aggressive growth to capital protection as it matures. (Ok, not "naturally", the fund managers do it, but I don't have to keep researching and coming up with new funds to move the money.) Quote Link to comment Share on other sites More sharing options...
KJB Posted January 10, 2009 Share Posted January 10, 2009 is that the price per share of stocks have fallen. If you are still investing the same amount of dollars, you are able to buy more shares. In the long run, you'll reap the advantage. Quote Link to comment Share on other sites More sharing options...
Vida Winter Posted January 10, 2009 Share Posted January 10, 2009 Not pulling out but I agree, how demoralizing. I can't bear to look at the statements. My parents have lost a staggering amount. Quote Link to comment Share on other sites More sharing options...
Tap Posted January 10, 2009 Share Posted January 10, 2009 I wouldn't sell now, it is like selling a house at the bottom of the market. We are a long way from retirement and we are hoping that it will recover. If we pull out now, the best secure investments are paying only about 3-4%. We have complete confidence that at sometime before we retire, our 401K will recover more that 4%! Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted January 10, 2009 Share Posted January 10, 2009 I'm contributing as much to my 401k as I can afford. I look at it as stocks being on sale. Quote Link to comment Share on other sites More sharing options...
Mommyof4ks Posted January 10, 2009 Share Posted January 10, 2009 We are not rich, but we are following their foot steps. The rich are bargin shopping right now, so we are joining in the fun. Buy quality stocks now that will go up, and in a few years when we start to recover you will be glad you did. As far as the retirement accounts, we are 29 and 30, so we will keep adding like we have been. Our financial planner recommends moving money you will need for retirement out of the volatile market about 3-5 years before you need it. Or any money for that matter that you will need to make a big purchase (college, big wedding, house, whatever). I am not a financial planner, but so far our FP has steered us right. I have found the key is to not even open the envelope from the 401K when it comes. If I don't know what it says, then I won't panic. Quote Link to comment Share on other sites More sharing options...
Kari C in SC Posted January 10, 2009 Share Posted January 10, 2009 I have found the key is to not even open the envelope from the 401K when it comes. If I don't know what it says, then I won't panic. :iagree: Yep, that is exactly what I do. Quote Link to comment Share on other sites More sharing options...
mcconnellboys Posted January 11, 2009 Share Posted January 11, 2009 Well, I am afraid they will continue to evaporate, but at this point in time, we've lost so much that we almost can't afford to get out and make that a permanent loss. I feel as if all we can do is stay in and hope/pray for better times. Short of buying gold ingots and squirreling them away somewhere, I'm not sure how to protect anything we have. If the economy tanks completely, then I'm afraid paper money won't be worth anything.... Quote Link to comment Share on other sites More sharing options...
Tree House Academy Posted January 11, 2009 Share Posted January 11, 2009 We froze ours and started doing some savings on our own. It was just too risky. Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 11, 2009 Author Share Posted January 11, 2009 (edited) Learn from your mistake and the next time we hit record highs (several years from now) move some of your money from the stock fund into a low risk fund (more secure, but lower profit). Most 401K's have several different funds to choose from. :confused: Honestly, I don't know what we could have done differently. These are accounts that dh's employer matches what we put into it. To my knowledge, we've not had "options". Maybe that is my ignorance, I don't know.... I will say that the loss was around 20%. Is that to be considered a "mistake" in the big scheme of things? (I ask this sincerely). Were folks able to anticipate the bear of 2008 enough ahead of time to lose less to none? :-{ If so, now I'm REALLY discouraged (to think that we could have done something to prevent this). I assumed that all 401Ks suffered something akin to what we have. Edited January 11, 2009 by Sharon in SC Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 11, 2009 Author Share Posted January 11, 2009 (edited) :iagree: Mine lost as much as it did because it's in "aggressive growth" funds, which have higher risk attached. When it's reinvested, I'm leaning toward a target date fund that naturally moves from aggressive growth to capital protection as it matures. (Ok, not "naturally", the fund managers do it, but I don't have to keep researching and coming up with new funds to move the money.) About those "aggressive" growth funds - with our "non retirement" investments we are very diversely spread (i.e. low risk, mid risk, high risk). Again, not sure what we should do differently if we're to try to take advantage of the equivalent to something other than passbook savings opportunities..... Edited January 11, 2009 by Sharon in SC Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 11, 2009 Author Share Posted January 11, 2009 We froze ours and started doing some savings on our own. It was just too risky. Please educate me and define "froze". TIA! Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 11, 2009 Author Share Posted January 11, 2009 Short of buying gold ingots and squirreling them away somewhere, I'm not sure how to protect anything we have. If the economy tanks completely, then I'm afraid paper money won't be worth anything.... You have summed up, in a nutshell, our discussed sentiments. In the words of my bil - one of two things will happen - the market will either recover (in which case you've done the right thing by leaving things as they are) or the economy is going to tank completely in which case it won't matter. :-} Quote Link to comment Share on other sites More sharing options...
sassenach Posted January 11, 2009 Share Posted January 11, 2009 Are y'all with 401Ks still planning to leave your money in? :confused: This is so totally demoralizing to have been so very careful all these years to fully fund these accounts and watch them evaporate before our very eyes!!!! I guess the good news is that you had 100K to lose, right? With the stock market, nothing really counts but the end. If you really think about it, you never really had that money. It was a possibility, but not a reality. Does that make you feel any better? Yeah, I didn't think so..... Sorry!! Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 11, 2009 Author Share Posted January 11, 2009 Does that make you feel any better? Yeah, I didn't think so..... Sorry!! :tongue_smilie: I hear what you're saying. Nothing changes the fact, though, that we've sacrificed as much money as possible each month for many years now in the name of "fully funding" our retirement accounts for a distinct reason - the desire to be "ready" for retirement. The other point of concern - will things go low enough that we truly would have been better off putting that $ in a passbook savings account?! Of course, we are blessed in that we're not retiring now as some folks are. I do hope that we have the forethought to "freeze" or whatever the appropriate action is in the 3-5 window prior to retirement to avoid that case scenario.... Quote Link to comment Share on other sites More sharing options...
JennifersLost Posted January 11, 2009 Share Posted January 11, 2009 I think the big concern right now is whether you are invested in things that could eventually go out of business all together. We didn't have a ton of money invested in mutual funds, but we've lost about a third of what was invested. Dh is just keeping an eye on things in case it begins to look like the bottom might drop out of the market all together. That's the only scenario in which it makes sense to pull our money out right now. Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted January 11, 2009 Author Share Posted January 11, 2009 I think the big concern right now is whether you are invested in things that could eventually go out of business all together. Whew, boy. Another bite of food for thought! :tongue_smilie: We are certainly living in crazy times. Quote Link to comment Share on other sites More sharing options...
Laura Corin Posted January 11, 2009 Share Posted January 11, 2009 Are y'all with 401Ks still planning to leave your money in? :confused: This is so totally demoralizing to have been so very careful all these years to fully fund these accounts and watch them evaporate before our very eyes!!!! I would just sit tight and wait. DH (professional fund manager) has deliberately not looked at our own savings over the past few months: he knows they are invested well for the long term, so now is the time to sit tight. Laura Quote Link to comment Share on other sites More sharing options...
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