401k and economy question

**cloneluke80** · 10-09-2008, 08:00 PM

does your 401k have a precious metal option?

no seriously, I have no clue how far down this is going... good luck to us. I just pray the U.S. doesnt plunge into a depression / 3rd world scenario.....

**Cyclonepride** · 10-10-2008, 06:22 AM

I'm just glad that stock simulator game ended when it did. Cashed out all my pretend money just in time!

**Bubbahotep** · 10-10-2008, 06:38 AM

I've still got my Y2K bunker ready to go, so, to all you suckers stuck on the outside, good luck!

**dmclone** · 10-10-2008, 06:48 AM

Originally Posted by Cyclonepride

I'm just glad that stock simulator game ended when it did. Cashed out all my pretend money just in time!

We need to start another one while the market is low.

**dmclone** · 10-10-2008, 06:56 AM

I'm starting another

**dmclone** · 10-10-2008, 07:02 AM

http://www.cyclonefanatic.com/forum/...tml#post667328

**Cyclonepride** · 10-10-2008, 07:16 AM

Originally Posted by dmclone

http://www.cyclonefanatic.com/forum/...tml#post667328

Sweet! Ought to be fun. I hadn't looked at the stocks on my watch list for a while, and when I did last night, I couldn't believe some of the values out there.

**capitalcityguy** · 10-10-2008, 07:21 AM

Originally Posted by CloneIce

I made a couple moves last night... but I am in a different situtation right now since my company just got bought out. So i have my old 401K sitting there with no more contributions to it until January when we are able to merge it into our new 401K or put it in whatever. So I took all my investments in that one and put them in "safer" investments, since the stock market certainly isn't going to rebound in the next couple of months, and I'd rather save what I have in it then lose more of it with everything going on.

Lots of people I work with (myself included) put our new 401K contributions into a safe money market fund.... I plan on keeping it there, watching the situation.... and when the market completley bottoms out I will put that money back into more aggressive stocks. I dont want to just lose that nice company match because I think it is going to say ugly for awhile.

Just at a glance knowing only what you've written here, you've created the textbook case study of what NOT to do in a down market.

You've made the classic novice investing mistake. You bought high and now you've sold low. You've guaranteed your loses. Furthermore, you'll be out of the market and not buying when the stocks are the cheapest and since it is not possible to predict or determine "the bottom", you won't be back in the market buying again until the news is all good and stock are considerably higher.

I've worked in the retirement industry for many years, so believe me you're not alone. I've seen very intelligent people (e.g. doctors, lawyers, big-time business owners, etc. ) make the same mistake over and over and over.

None of our 401(k) statements look good right now (which is why I don't look at mine during down markets), but our losses are only on paper. We don't actually lose anything UNTIL we sell.

I realize there maybe more to your story than what you've laid out here, but I felt I needed to at least comment on the info you provided in hopes others don't make a serious mistake they'll regret later.

**erikbj** · 10-10-2008, 07:31 AM

You want fixes to the economy, you had a chance to vote for him last year in the primaries - now we are faced with the current admin and two idiots running for president.

Congressman Ron Paul

Today was the first day I am starting to panic about the markets - that usually means it is going to turn around fast!!!

**cyclonedcm** · 10-10-2008, 08:02 AM

take all of your money out of the bank, get a good coffee can, put your money in it, dig a hole in the backyard, put the can in the ground, cover it up, remember where you put it--do not tell your wife!, dig it up a couple of years from now and be wealthier than everyone else...