401k returns

[imported_Lothar]

-2.83% since inception.

I'm 100% stock for my 401k. The bond funds offered here are complete crap.

 

[Pepsei]

-11.something %

 

[thepd7]

Originally posted by: Cattlegod

Originally posted by: thepd7

Originally posted by: Chunkee
my father (retired) is down hundreds of thousands.

This baffles me. Why the hell would you keep money in stocks when you are retired? Your money should be completely liquid if you are within 5-10 years of needing it.

My Grandmother (76) did the same thing. I had no idea or I would have made her fire her financial guy years ago. She sold at the bottom a few weeks ago because she "couldn't afford to lose any more". It pisses me off just thinking about it, people are just idiots when it comes to this.

I disagree. Only the portion that he will need in the next 10 years should be in bonds. So you are saying to move everything to bonds if you retire at 55? What happens if you live to be 80? That is 25 years of growth you are missing out on.

I said "if you are withing 5-10 years of needing it". If you have enough to last you 20 then sure only take out half. Let that other 10 go for another 10 years, no problem.

But to leave it all in stocks is exposing yourself to unecessary risk, like my grandmother did. She has hardly anything left when she should be sitting pretty. Fortunately my Uncle and myself will make sure she is taken care of but still, why are people thinking that the stock market is a sure thing short-term?

The bottom line is you need to have the time to recover from something like what is going on now. 5 years is most likely NOT enough time. 10 probably is.

 

[UDT89]

definitely dont change your contributions. You were buying high, now you should stay to buy low and average out your investments.

I'm down +40% as well, but you have to stay in it to enjoy the rebound. Otherwise you'll just make your money back and no gains.

 

[Suspicious-Teach8788]

What I dont understand is when you guys saw the market tumble and you guys started dropping past 25% why didn't people switch out into some stable money market fund or something? -45% is going to take a while to rebuild. Sure you can talk about holding long term, but if you switched into something less risky you could've held onto an extra 15% or so?

 

[sactoking]

For me, it's a 401(k). There ARE no other options. We only get a limited number of investment choices. The only BOND FUND we have available to us is down >17%. The S&P INDEX fund is down >49%. Those are some of the safest investments offered. If this was an IRA, where I could dictate the investment options, then yeah, I probably would have reallocated. But in 401(k)s you're pretty much limited to the choices set by your company's fund director/CFO/Person in charge. The only thing I could do is complain that the fund choices suck.

 

[JoLLyRoGer]

Statment from 11/13/2007 to 11/13/2008
-31.8%

 

[43st]

-5.1 YTD

I don't think we'll see 13-14k in the DOW again for a looong time.

 

[SlowSpyder]

-47.3%. Just a paper loss, I'm only 31 years old. Who cares?

 

[K1052]

Originally posted by: DLeRium
What I dont understand is when you guys saw the market tumble and you guys started dropping past 25% why didn't people switch out into some stable money market fund or something? -45% is going to take a while to rebuild. Sure you can talk about holding long term, but if you switched into something less risky you could've held onto an extra 15% or so?

Most investors will have no idea where the bottom is, only with hindsight can you say you should have sold at -10% or -20%. Also, why turn a paper loss into a real one if you have a few decades to ride out the market?

I was already 30% in a bond fund before the trouble really got started. The remainder evenly split between US large cap and emerging markets. I have since changed my contributions and am buying US large cap like its going out of style.

 

[Special K]

Originally posted by: DLeRium
What I dont understand is when you guys saw the market tumble and you guys started dropping past 25% why didn't people switch out into some stable money market fund or something? -45% is going to take a while to rebuild. Sure you can talk about holding long term, but if you switched into something less risky you could've held onto an extra 15% or so?

Because every academic study done demonstrates that most people are poor at market timing. No one is able to do it consistently in the long run (i.e. over a period of decades). Remember, you have to guess correctly twice - you have to know when to get out to miss the bottom, and you have to know when to get back in so you don't miss out on the next big upswing.

It's better to just stick to an asset allocation strategy and leave your investments alone, or possibly buy even more during the downturns.

 

[Drakkon]

Originally posted by: DLeRium
What I dont understand is when you guys saw the market tumble and you guys started dropping past 25% why didn't people switch out into some stable money market fund or something? -45% is going to take a while to rebuild. Sure you can talk about holding long term, but if you switched into something less risky you could've held onto an extra 15% or so?

Well one big thing was most people don't check their 401k daily. There was a good portion that didn't know how far they were in the whole until they got their quarterly statement. Major drops happened in one months time and so I could understand holding onto something and not realizing how much it was effected until you got that statement and by then it was too late.

 

[ViperVin2]

Around -48% when I last checked. These guys managing the funds are supposed to be top-notch in their field, but these $hitty returns say otherwise.

 

[thepd7]

Originally posted by: Special K

Originally posted by: DLeRium
What I dont understand is when you guys saw the market tumble and you guys started dropping past 25% why didn't people switch out into some stable money market fund or something? -45% is going to take a while to rebuild. Sure you can talk about holding long term, but if you switched into something less risky you could've held onto an extra 15% or so?

Because every academic study done demonstrates that most people are poor at market timing. No one is able to do it consistently in the long run (i.e. over a period of decades). Remember, you have to guess correctly twice - you have to know when to get out to miss the bottom, and you have to know when to get back in so you don't miss out on the next big upswing.

It's better to just stick to an asset allocation strategy and leave your investments alone, or possibly buy even more during the downturns.

this.

 

[daniel49]

egads sounds bout normal I'd say for this year.

I have mine split up somewhat so not totally hosed yet.

active 401 probably down 8-10 k
can't do much but ride it out.
another one I had from previous job, I moved into an account about a year and a half ago guarantees me 7% or market rate if markets higher. I wanted to get it to a certain level and then establish a high water mark so to speak. Glad I did.
Then I have some in guaranteed pensions from present job.

 

[cKGunslinger]

Wait, so stocks are at all all-time low, so you're buying less of them?

I just upped my contributions.

 

[TallBill]

Originally posted by: DLeRium
What I dont understand is when you guys saw the market tumble and you guys started dropping past 25% why didn't people switch out into some stable money market fund or something? -45% is going to take a while to rebuild. Sure you can talk about holding long term, but if you switched into something less risky you could've held onto an extra 15% or so?

If you move funds out on the downswing you're already to late and its time to ride the market. If you move funds out before the peak then you have more options.

 

[sygyzy]

-41.8%

 

[SmoochyTX]

-42.9%

Not changing a thing though. I'm in it for the long haul.