Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
1. On my 401K, I am investing to close to 20%. Every month, it's keep going down. I want to make all the new money to go to some kind of money market and move the money back to one of the mutual fund maybe next year or when ever we see the light at end of the tunnel.
2. My wife 401k, she is investing close to 5%. She is also lost lot of money. I just want to move all the money to some place where I will not lose any more money.
3. My old money, I am already down close to 35%, is it too late to move the money now? I know on the T.V and on the internet every one says that's not good idea. The reason I ask is, if I move the money back in Nov 08, I would have saved close to 15%. But now I am down even more. I just hate loosing more money.
I decided on my own what to do with my 401k. Admittedly it's not what the experts would advise. But I'll say this....since I went my own way I haven't lost any money. Before that I was bleeding profusely from the anus...while getting a bi-weekly transfusion. It really seemed like a stupid activity. So I sympathize with you. But don't do anything rash that you may regret.
Do what you want, but I wouldn't move it. Remember when you say you are 'moving' your money, you are actually selling shares. For instance, if I currently have 900 shares of ABC stock that used to be valued at $40 a share and are now only at $5 a share, I don't LOSE money until I actually sell those shares (move the money somewhere else). Yes, my portfolio has lost value, but I haven't yet lost any actual money. If I'm patient and wait for the value to go back up, I will be better off than selling at $5 a share.
How long do you have to retire? The longer off that is, the better off you are at keeping the investments. The stock market will eventually bounce back but when, no one will know. Remember you are only losing the paper value of your investments and not real value. The true loss comes if you sell the investments. Of course, if you can't sleep at night worrying about it than you have a low tolerance for risk and should not be in the stock market.
What you are suggesting when you pull out and then put it back in when "we see the light at end of the tunnel" is really market timing. Who can tell when the tunnel ends? If the stock market goes up by 500 pts? What if it goes back down 500 pts the next day? It is impossible to guess. So, either you decide a percentage of your money will be in the stock market and then ignore it or just pull out of the market totally.
I can't help butting in everytime see the "you haven't lost anything if you haven't sold" argument. If this approach really works, then no one would lose any money, EVER. All you have to do is sit tight and wait for it to go back up. That's all good in theory, but does reality work like that? It's true that some stocks will rebound, but many will not.
The truth hurts, and some people will avoid facing that pain at all cost. Saying to themselves, "I haven't lost anything because I haven't sold" is one way they avoid dealing with the pain of losing money in the market. The unscrupulous financial industry, however, is responsible for this flawed thinking. They foisted the idea at the masses.
Once upon a time, a nolossinvestor went to a bank to borrow money to start a business.
Bank Officer: Sir, I had to determine how much you are worth by calculating the value of your stocks.
Nolossinvestor: It should be a large amount. I haven't lost anything.
Bank Officer: Huh? anyway, at today's prices, your stocks are worth $2M.
Nolossinvestor: No, that's not possible. My stocks are worth $4M. Let me show you my statements from 2 years ago. See where it said $4M.
Bank Officer: Sir, that's was 2 years ago. The market has declined, and you have lost 50% of your money.
Nolossinvestor: You don't understand. I haven't lost anything because I haven't sold.
Well, of course, if you are using the value of your portfolio to get a loan then, yes, it will have an impact. And the closer to retirement you are, the more your current value is going to affect you.
But for someone like me, with no intention of applying for a loan and at least 25 yrs from retirement, the current value of my portfolio is not a huge concern unless the companies I have invested in actually go under.
Thank you to all for your advice. Davidt1, I really like yours. I am just going to bite the bullet and move all my money to money market so I will stop losing money for a while. I know I lost lot of money and I don't think it will ever come back so I don't think praying will help either. :-)
I can't help butting in everytime see the "you haven't lost anything if you haven't sold" argument. If this approach really works, then no one would lose any money, EVER. All you have to do is sit tight and wait for it to go back up. That's all good in theory, but does reality work like that? It's true that some stocks will rebound, but many will not.
The truth hurts, and some people will avoid facing that pain at all cost. Saying to themselves, "I haven't lost anything because I haven't sold" is one way they avoid dealing with the pain of losing money in the market. The unscrupulous financial industry, however, is responsible for this flawed thinking. They foisted the idea at the masses.
Once upon a time, a nolossinvestor went to a bank to borrow money to start a business.
Bank Officer: Sir, I had to determine how much you are worth by calculating the value of your stocks.
Nolossinvestor: It should be a large amount. I haven't lost anything.
Bank Officer: Huh? anyway, at today's prices, your stocks are worth $2M.
Nolossinvestor: No, that's not possible. My stocks are worth $4M. Let me show you my statements from 2 years ago. See where it said $4M.
Bank Officer: Sir, that's was 2 years ago. The market has declined, and you have lost 50% of your money.
Nolossinvestor: You don't understand. I haven't lost anything because I haven't sold.
Bank Officer:
EG-FREGGIN-ZACTLY!!!! On what planet do your stocks lose 40% of their value and yet you haven't lost anything???? Thanks for the post!
1) Contribute only up to the company match.
2) Move your money to a MMF within your 401K.
3) Move your money on a rally. Wait for the market to go up a few hundred points and then SELL your stocks and put it into a MMF.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.