skip 401k for now until market comes back? (IRA, mutual funds, cash)

[oleo]

company matches 50% of my 6% salary max contribution for the 1st year, 100% match 2nd year.

already have an IRA with bank with value of approximately 5k.

was given a list of mutual funds to create a portfolio for 401k.

didn't really care for any of them.

Is anyone here skipping the 401k contributions because the market will just go down and you will lose money?

OR will the 50% match out weigh the lose, hoping that the loss isn't that big?

Thanks.

[le roi]

I am saving more now, not less. I don't know if stocks will go up or down, I just know that they are cheaper than they were, and that 20 years from now I bet I will be glad I kept saving.

I guess the question is, what else are you going to do with the money?

[oleo]

my IRA is composed of 3 mutual funds, so i've got some exposure to the market. i also own a couple individual stocks. but the majority of my assets (~75%) are cash. cash is king!

[juggler]

If anything, you should be contributing MORE to your 401k during this recession, not less. Your contributions will buy more shares while the market is down, and when it comes back (be it 1 year or 10 years) you will be in good shape. At the bare minimum, contribute enough to maximize your employer match - that is free $$$$!

As someone else said, what else are you going to do with the money? Stick in under your mattress???

[humboldtrat]

Stay with your 401k plan. And take as much of your employer's free money as you can. You're suppose to buy when stocks are low and cheap. Were you going to wait until the market was going up? Buy when others are selling and sell when other are buying.

[oleo]

I predict the market will fall more and not turn around until 2010/11. By then my employer will match 100%

Yeah, I'll stick it under a mattress or maybe I'll but it in a high yield savings account.

[LongArm]

Originally Posted by oleo

I predict the market will fall more and not turn around until 2010/11. By then my employer will match 100%

So...you're going to turn down free money because you'll get more free money later.

Um...okay.

[oceangaia]

Originally Posted by oleo

I predict the market will fall more and not turn around until 2010/11. By then my employer will match 100%

Yeah, I'll stick it under a mattress or maybe I'll but it in a high yield savings account.

Once again, people assume that 401k = stocks. Contribute as much as possible, take the matching, and allocate it to "cash". Then you won't lose money if the "market" continues to fall.

On the other hand, you usually can't see the bottom except in the rear view mirror. If you wait til it comes back, you'll have missed all the gains from the bottom.

[le roi]

Originally Posted by DiverTodd62

Once again, people assume that 401k = stocks.

I know for me, they are synonymous. I have about 6 mutual funds to choose from, all invested in shares of American companies.

Of course, after the market crashed, they have announced that the old offerings have been scrapped, and "details to follow" on the new ones.

So for some people, if you want some control over your money, you probably don't want it in your 401k.

[oleo]

Originally Posted by DiverTodd62

Once again, people assume that 401k = stocks. Contribute as much as possible, take the matching, and allocate it to "cash". Then you won't lose money if the "market" continues to fall.

On the other hand, you usually can't see the bottom except in the rear view mirror. If you wait til it comes back, you'll have missed all the gains from the bottom.

401k does not = stocks. I know that you little

At my company, I have to be fully invested and get to chose between 25 mutual funds. There is no "cash" option.