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I haven't had too much experience with 401(k)s. So I am wondering how many of you have made more money than you have put into the 401(k)?
Or have you lost more than what you put in.
For example, Say you have contributed $400/month for 5 years. That totals to $24,000. Do you still have that 24K or is it less?
Have way more than the principal I put in... I did take a big hit this last year (down 30%), but still lots more than I would have ever had without it - that's the value of long-term investing... with the current market conditions, its an excellent time to keep buying.. the market will recover over time and this is the time to be buying low... dollar cost averaging into a 401(k) is a great method in times like this.
If you had investments during the Clinton years, you should be okay... BUT if you started investing 4-5 years ago, you should be at a net loss... you have to compare when you started to invest to where you are at now... not how the market is doing currently... right now is a dang good time to invest (only if companies don't go bankrupt now or in the future... becareful of where your investments are)....
Nothing magic about "era" -- it is about FUND SELECTION. If you put your money into funds that were highly exposed to the BROAD market declines you are probably down. If you put your money (or moved YOUR money) into categories of investments that had less RISK there is every reason to believe that you have not suffered losses. BUT if you leave / only put your money into LOW RISK categories you WILL NOT beat inflation...
My estimate is that I've lost the better part of all my employer's (2 of them) contributions. Mine still seem to be intact, but not for long if the market stays the way it is.
Started 401k as soon as it was available to me 10 years ago...
Company matched 25 cents for every dollar up to 3% of pay.
Almost 6 years ago company dropped match...
I've lost everything I've put in since 2004 and then some
See no reason to continue without company match and limited funds choice. Stopped deferral last week...
Only one fund of 35 positive for the 10 years I've been in 401k... PIMCO bond.
I care about capital preservation... never looking to get a windfall or win the lottery.
I'm a little bitter because the company ownership changed a couple of years after I started 401k... only vested 40%... lost 60% and there wasn't a darn thing I could do about it... tried to get my money into a IRA and was told we couldn't because of the IRS same Desk Rule... we were all working the same jobs as under old management. 18 months later, we get a IRS letter ruling saying we can move our 401k... this was right after the High Tech Bust and lost a lot...
What I don't understand is why isn't mandatory for every plan to have a safe harbor FDIC fund as an option?
Second thing I don't understand is why they now impose round trip limits when money is switched between funds in the 401k... if I am truly responsible for managing my 401k... don't tie my hands.
Last edited by Ultrarunner; 01-25-2009 at 09:34 PM..
My estimate is that I've lost the better part of all my employer's (2 of them) contributions. Mine still seem to be intact, but not for long if the market stays the way it is.
...don't just watch the money 'evaporate' -- MOVE IT TO STABLE VALUE (money market) fund(s)!!!!
While some firms try to sell 401Ks as a "set it & forget it" way to invest that is a BONE HEADED way to look at YOUR MONEY!!!!
Ultrarunner the reason you want to continue without company match is to pay less income taxes. Having the money removed from your check before you receive it helps with the theory of "Pay Yourself First." You will not have this benefit if you simply put the money in an IRA account.
Thanks for all the answers. Looks like people are still in the green. But a chunk of you guys are in the red. I wonder where everyone will be say a decade from now.
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If you feel the way you say..
