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Thread: Anyone else's 401k taking huge hits lately?

  1. #1

    Anyone else's 401k taking huge hits lately?

    I've lost $12,000 since January. That's because most of my funds are invested in the stock market.

    But, the worst thing people can do is panic and reallocate their funds.

    If you're in it for the long haul, there's probably not too much to worry about.

  2. #2
    The smart thing to do, if your retirement is still a ways off, is buy more during a downturn. In the long run, you're getting the same shares you were buying before for less. Over time, the market will go up. As long as you have a diversified portfolio, there is absolutely no reason to take money out of the market.

  3. #3
    I have taken a pretty big hit over the past 3 months. My retirement is far off so I am trying to look at it less so I dont get worked up and over react.

  4. #4
    My YTD losses went from 14.5% to 8.5% over the past 2 weeks. Talks about volatility...

    Learn from Enron, Lucent, Bear & others, make sure you don't have your entire 401 in company stock!

  5. #5
    ride it out baby!

  6. #6
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    No worries...diversified and in it for the long haul.

  7. #7
    down 7.2% for the year.

  8. #8
    I have always dollar cost averaged into broad none managed indexes. The interesting lesson I have learned is the indexes have been tilted toward the banking sector because of the growth of these sectors. The bad news is outsized losses, the good news these indexes are no longer tilted toward the banking industry.

  9. #9
    [QUOTE=Winstonbiggs;2459536]I have always dollar cost averaged into broad none managed indexes. The interesting lesson I have learned is the indexes have been tilted toward the banking sector because of the growth of these sectors. The bad news is outsized losses, the good news these indexes are no longer tilted toward the banking industry.[/QUOTE]


    What does this mean in English?

  10. #10
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    Don't be sore, buy some more.

  11. #11
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    I moved about 35% of my allocations out of stock and into money mkts a few months ago. I plan on moving it back in the 4th qtr 2008. Yes this is a gamble as I can miss an upswing, but so far I have minimized some of my losses.

    This is the first time Ive tinkered with it in this manner, usually I like to ride it out.

    As far as buying more, that only goes if youre not maxed out on your contributions.

  12. #12
    Jets Insider VIP
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    if anyone's account (401K, mutual funds, etc) which has been earning more than 9%/annually the past three years has not seen a decline since December please- share the secret...

    btw; SA JF...it's all a percentage....if the $12K represents a 5%-7% loss you're doing fine...

  13. #13
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    [QUOTE=Winstonbiggs;2459536]I have always dollar cost averaged into broad none managed indexes. The interesting lesson I have learned is the indexes have been tilted toward the banking sector because of the growth of these sectors. The bad news is outsized losses, the good news these indexes are no longer tilted toward the banking industry.[/QUOTE]

    and financials are up today....

  14. #14
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    The secret is to not retire now.

  15. #15
    [QUOTE=Come Back to NY;2459801]and financials are up today....[/QUOTE]

    I'm not selling today so what benifit do I get other than feeling richer?

  16. #16
    [QUOTE=sect112row36;2459795]I moved about 35% of my allocations out of stock and into money mkts a few months ago. I plan on moving it back in the 4th qtr 2008. Yes this is a gamble as I can miss an upswing, but so far I have minimized some of my losses.

    This is the first time Ive tinkered with it in this manner, usually I like to ride it out.

    As far as buying more, that only goes if youre not maxed out on your contributions.[/QUOTE]

    It's a bigger gamble than you realize. For one thing, you are paying commissions on the buying and selling ends of the transaction. For another, missing a big surge in the market is massively expensive. I saw a stat yesterday that said someone who missed the 20 best days of the last bull market would have made virtually no money during that 5-6 year run.

    If you time it perfectly, yes, you can come out ahead. But the odds of timing the market perfectly are pretty long.

    If you're in for the long haul, the shares will definitely go up over time, and you'll have avoided paying extra commissions/fees that eat at your margins.

  17. #17
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    [QUOTE=nuu faaola;2459871]It's a bigger gamble than you realize. For one thing, you are paying commissions on the buying and selling ends of the transaction. For another, missing a big surge in the market is massively expensive. I saw a stat yesterday that said someone who missed the 20 best days of the last bull market would have made virtually no money during that 5-6 year run.

    If you time it perfectly, yes, you can come out ahead. But the odds of timing the market perfectly are pretty long.

    If you're in for the long haul, the shares will definitely go up over time, and you'll have avoided paying extra commissions/fees that eat at your margins.[/QUOTE]

    +1

    Not to mention you'll miss out on distributions of income (divs, cap gains).

  18. #18
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    [QUOTE=nuu faaola;2459871]It's a bigger gamble than you realize. For one thing, you are paying commissions on the buying and selling ends of the transaction. For another, missing a big surge in the market is massively expensive. I saw a stat yesterday that said someone who missed the 20 best days of the last bull market would have made virtually no money during that 5-6 year run.

    If you time it perfectly, yes, you can come out ahead. But the odds of timing the market perfectly are pretty long.

    If you're in for the long haul, the shares will definitely go up over time, and you'll have avoided paying extra commissions/fees that eat at your margins.[/QUOTE]

    FYI----I am referring to my 401k only, not my portfolio. All 401k transaction fees spread thoughout the plans.
    Last edited by sect112row36; 04-01-2008 at 05:47 PM.

  19. #19
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    When the market started tanking I raised my contributions. Buy low, sell high. If you're under 35 and have a while before retirement you LOVE to see the markets acting like it's been acting since January.

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