Got my 401K statement for this quarter

[StageLeft]

I got screwed out about 350G in the last two weeks alone.

 

[Triumph]

i'll be starting my job, and my investing plan, in about a month. looks like a great time for me to start!

*edit* I'm looking at investing in this company called Confederated Slave Holdings. Sounds like a market on the up-and-up. What do you guys think?

 

[Pliablemoose]

There's an old formula for pulling out of stocks in the spring & buying back in in the fall, anyone remember the months they suggested for the moves?

 

[zephyrprime]

350G

Yikes! That's a ton of money! Are you a trader or is this in your retirement account?

And regarding the post 2 posts ago - yeah, timing is hard. Maybe impossible. I always sucked at it too. (With the exception of bottoms. I can often pick the bottom.) What I'm saying is that I believe that the trend is down for a few years and my strategy isn't "buy and hold" but "sell and hold". For a few years anyway.

 

[Zebo]

I maxed my 401k early this year).

Hey bill,

what's the MAx? I out in a little over $700 a month and employer matches that so around $1400. I've would love to max!!

 

[zephyrprime]

There's an old formula for pulling out of stocks in the spring & buying back in in the fall, anyone remember the months they
suggested for the moves?

Ah yes. This technique is called seasonality. You're supposed to pull out in early may and charge back in at early november.

 

[kranky]

Surely when people invest in the market, they understand that it will fluctuate. Everyone wanted stocks during the dot-com bubble, and now nobody does, and like others have said that would be "Buy high, sell low". Doesn't work.

And as far as trying to guess when to jump in and out of the stock market, studies have proven that you'll probably not time it correctly. A 1998 story from Business Week showed that if someone invested $10,000 in 1988 and kept their money invested for 10 years, they would have ended up with $42,338. If by trying to jump in and out they missed only the six best months over those 10 years, they would have had just $25,402. That's 40% less money by missing only six months over 10 years.

There's two reasons for this. First, in the big picture the market goes up. Not every day, month, or year, but in the long term. Second, the market can go up a lot very quickly. So to be out of the market is to bet against the long-term trend.

Investing is not for everyone. But it is the best option for long-term financial gain. Accept the fact that there will be ups and downs, and as long as your retirement isn't right around the corner, just wait it out.

 

[kranky]

Originally posted by: Skoorb
I got screwed out about 350G in the last two weeks alone.

Skoorb, how much is a "G" in American money?

 

[bsobel]

what's the MAx? I out in a little over $700 a month and employer matches that so around $1400. I've would love to max!!

The current employee max contribution is $10,500. That does up yearly (next year is $11,000). I don't know of any caps on employee matching (anyone?)
Bill

 

[Pliablemoose]

The seasonality method has some historical validity, I've seen the stats & am going to do it next year, sort of blew it for this year.