The reason I posted this in general is, I don't care about politics and I don't visit the dungeon often I am just wondering how you guys-es 401K is doing? For the last two months I have been losing money and it seems like it is increasing. Just wondering if it is just me because of my investments or is everyone on the downside?
your 401k is tied, generally, to the performance of the stock market. given that the DJIA is down overall by >25% in the period you mentioned, i'd say it's safe to assume your performance is not unusual.
I'm only down about 5% because I was 50/50 stock index and bonds. I was switching to 100% stock index when the S&P would drop then go back to 50% bonds when the S&P recovered. I was ahead until I got the nasty letter from Fidelity warning me I was guilty of 'round trip" trading. They don't allow transferring out of the funds I'm in until I've held them for 30 days.
Its bad. Fortunately someone explained to me that there is usually a gauranteed rate fund put some of your money into. You need to find a percentage that you are comfortable with and keep it at that ratio. They aren't even keeping up with inflation now but if the market really tanked, at least you would have something left.
I contribute %5 because my company matches that and I figure if I don't put it there I know I will not save it
I never look at mine and havent in forever. I put in 10% pre-tax and my company matches 5% of that. I just see it coming out on my paystub, but other than that, i dont mess with it.
10% and I stare it when I contribute to my roth (both through fidelity). My roth is worse than my 401k.
I never did understand why there are a lot of individuals who do not actively manage their 401k investments. You do not have to have it just follow the stock market. You do not need to look at it every week, but you should move it around to take advantage of current events and business opportunities...
Im not talking about the percentage you take out of your check, im talking about a percentage of total savings and where its invested. I like to keep 50% of my 401k investments in a gauranteed rate fund. Meaning it will grow about 3.5% a year no matter what. The rest are in more aggressive funds that go up and down all the time. It grows slower but its also more stable. It allows me to sleep at night.
you guys should also remember that when the market is down like it is, and you're still contributing every month, you're buying at reduced prices as well. so its not bad in that sense. also, nothing wrong with re-allocating monies in your 401k. just dont try and day trade with it. i also wouldnt put anymore than your employer would match either. put the rest in a traditional ira, get a tax savings on the first 5k there, plus you have more flexibility with it. my $.02.
I heard the magic number is 10% for retirement. The minimum I would put in would be the amount my company would match, not the max.
I get to ignore it because I have a financial planner guy. Glad you mentioned that Kris. The stuff I'm doing on my own with the planner dude is just destroying the funds my company offers. I think we only have like 6-8 funds to choose from for the 401K. Sounds like I'll see you at GNF. :up:
GNF? I don't have an offer that i know of yet. But i'm coming regardless to help some poor SV guys who can't set up there bikes. i like my financial advisor. i dont question him much. the only thing we disagree on is life insurance. i pretty much leave him alone.
