$401 k down 35% moved into cash

**mmike032** · 10-08-08, 05:00 PM

arent you penalized for taking money out?
ride it out, the ship will right itself but its not gonna happen over night.

**pavyracer** · 10-08-08, 05:02 PM

Fire your financial advisor immediately. My FA told me to convert into cash 3 weeks ago thus saving me 50 grand.

**vsdspread** · 10-08-08, 05:04 PM

Mutual funds are on sale right now, I am now investing more money in good growth stock mutual funds than ever before.

97% of all 5 year periods and 100% of all 10 year periods the market has made money.

401K is a 40 year investment, who cares what it's doing this week, this month and even this year.

I don't even stress myself out about it. If you are in good mutual funds with proven 15-20 year records, then relax and invest more.

That's my take!

**HAPPY BOY** · 10-08-08, 05:14 PM

Originally posted by mmike032

arent you penalized for taking money out?
ride it out, the ship will right itself but its not gonna happen over night.

no because its within the 401 k (fidelity money market account) Im actually moving out of equaties into the money market account. no penalties.

**HAPPY BOY** · 10-08-08, 05:15 PM

Originally posted by pavyracer

Fire your financial advisor immediately. My FA told me to convert into cash 3 weeks ago thus saving me 50 grand.

Pavy, shes actually my wifes best friend who is a financial advisor. She called me today and suggested I transfer 80% into cash. Good for you on converting 3 weeks ago, like I said wish I had done this 2 months ago.

**nosniboR11** · 10-08-08, 05:18 PM

not the smartest thing u could of done, taking it out you can only lose again.

**HAPPY BOY** · 10-08-08, 05:19 PM

Originally posted by vsdspread

Mutual funds are on sale right now, I am now investing more money in good growth stock mutual funds than ever before.

97% of all 5 year periods and 100% of all 10 year periods the market has made money.

401K is a 40 year investment, who cares what it's doing this week, this month and even this year.

I don't even stress myself out about it. If you are in good mutual funds with proven 15-20 year records, then relax and invest more.

That's my take!

You are correct my friend. i dont have a 20 year window, Im 46. So, with that I need to save my capital. After this storm passes I plan to dollar cost average back into the market a little each month. I am still contributing into my 401-k buying stocks at the current low rate. Gl to you your thinking long term is right.

**HAPPY BOY** · 10-08-08, 05:21 PM

Originally posted by nosniboR11

not the smartest thing u could of done, taking it out you can only lose again.

true, but whos to say the market doesn't dip another 1000 or 2000 pts between now and when this crap passes. I cant take that risk.

**pavyracer** · 10-08-08, 05:24 PM

Originally posted by HAPPY BOY

Pavy, shes actually my wifes best friend who is a financial advisor. She called me today and suggested I transfer 80% into cash. Good for you on converting 3 weeks ago, like I said wish I had done this 2 months ago.

It will come back. Wait till is on the upturn before you go back in. Sorry to hear about your loss. I was lucky enough to lose only 10% before I got out.

**durito** · 10-08-08, 06:09 PM

Originally posted by vsdspread

97% of all 5 year periods and 100% of all 10 year periods the market has made money.

Did you make these figures up?

Here's a nice 17 year period where the down returned less than 0 in nominal terms.

DOW October 1st, 1965: 969
DOW July 1st, 1982: 896

How about this one:

DOW October 1st, 1999: 11,500
DOW October 8th, 2008: 9,258

**accuscoresucks** · 10-08-08, 06:13 PM

Originally posted by mmike032

arent you penalized for taking money out?
ride it out, the ship will right itself but its not gonna happen over night.

10% charge for outing earlie
but the fed gives it back to you when taxes are filed

**mtneer1212** · 10-08-08, 06:19 PM

Bad move. Your financial advisor is an idiot. Even if the Dow bottoms at 8000, now is the time you want your money going into the 401k. You have 15 years to recover -- only if you were in your late 50s or early 60s would I make such a move. You have cost yourself a chance to make MAJOR gains in the coming 10-15 years -- as it stands, you were buying high, and now selling low.

**accuscoresucks** · 10-08-08, 06:21 PM

why is this one can manage their own money by openning up a e-trade,leverage m acct,or day trader acct ,its all adheirantly the same thing
**** a 401k

**mtneer1212** · 10-08-08, 06:24 PM

Originally posted by accuscoresucks

why is this one can manage their own money by openning up a e-trade,leverage m acct,or day trader acct ,its all adheirantly the same thing
**** a 401k

But your employer doesn't give you matching funds in an Etrade account. A 401(k) is only useful if you are getting matching funds.

**accuscoresucks** · 10-08-08, 06:31 PM

i am my own employer

besides that all this employer matching stuff is built in clause VERY HARD to get out nowadays thanks to greedy clause lawyers

i have a buddy who fixes copy,fax machines locally had about 50k matched,he moved to florida and still cannot acess his supposed 50k they matched him,here it is 6 years later
besides employer do not match near enough in todays age for it to be considered anything special long term

open a reduced juice acct,or matchbook thats my 401k

**flyingillini** · 10-08-08, 06:35 PM

I am riding it out, most of what I have is in my personal home and my business. In my line of work it could be world war 3 and there is always need for what I do.... My portfolio is suffering but it is not something I look at monthly, not even yearly.... I will ride it out however long it takes....... Luckily in my town homes are such a good investment it is a guaranteed moneymaker... everyone wants to move here..

**fiveteamer** · 10-08-08, 06:35 PM

put it all on Idaho ML.

**FreeFall** · 10-08-08, 06:44 PM

Bad move. You should've done this a long time ago, but fine say you didn't expect it. Either way your out all your cash. I would've waited five years for it to go up.

What your doing is selling low and buying high.
You want to buy low and sell high.

What do you gain by selling now?

**pico** · 10-08-08, 06:46 PM

happy boy isn't so happy

**flyingillini** · 10-08-08, 06:52 PM

The worst thing to do is panic and get out... I act like my portfolio doesn't even exist. I don't live off of it... ride it out.....

**bigboydan** · 10-08-08, 07:05 PM

Why did you even look at your October statement HB. I think your overacting if you do anything premature with your 401k.

**LVHerbie** · 10-08-08, 07:08 PM

if you are investing long term (15 years+) and are properly diversified then you should leave your money where it is at because you can't predict (and thus don't want to miss) the recovery of the market... If the market truly goes to shit US cash will just as worthless as US stocks... even during the great depression if you held your investments you made your money back during the recovery... the worst thing you can do is buy high and sell low and this is what you're doing by putting your money in when the market is doing good and pulling your money out when the market is in a decline...

**jjgold** · 10-08-08, 07:40 PM

Just hold it, all markets run on cycles and we are in a bad one now. I think in a year it will start to turn.

**accuscoresucks** · 10-08-08, 08:15 PM

i like the under 5$ up and coming stocks used cycle trends current trend
natural gas,electricity