How much are you losing on your 401k?

[Casawi]

Originally posted by: Rage187
I put in 7% and the company matches me on 3%. So 10% goes in every paycheck.

Same here

 

[randay]

-469!

 

[alkemyst]

with a 401k you really have to think about future value. If you know the future value is going to be fucking amazing, having it crap now just means you are buying more shares with each dollar.

It's really a complex subject, but in general people react and therefore miss the crest of the wave. They end up really costing themselves more in the end.

I diversify. I have the tried and true stuff that through all it's ups and downs keeps nudging up more and more over time. I have the risky shit that you win some and lose some on. I have some things that always go up (S L O W L Y), but lately have been the hot ones.

in the end who knows what I will have.

 

[alkemyst]

Originally posted by: iFX
I do not depend on 401k for retirement. If you do, I pitty you.

being Bill Gates fluffer I guess you wouldn't have too.

 

[Brainonska511]

No 401K, just a Roth IRA. It hasn't done too well this year, but now it's time to finish my contributions to it for the year. I'm in it for the long haul, seeing as I'm only 20.

 

[TXHokie]

My 401k plan has been changed to 301k.

 

[ViperVin2]

One year into it and I am -19.6% when I checked a few days ago. I started investing at the worst possible time (i.e. last year about this time when the markets were going down).

 

[Chaotic42]

Personal Rate of Return from 01/01/2008 to 09/11/2008 is -16.7%*

I put in 6% and my company matches 5%. That's increasing to a 7% match next year.

 

[DrPizza]

Originally posted by: dullard
The stock market is down, thus I (and most of the rest of you) are GAINING MONEY. To the uneducated investor, it may seem like the money is going down. But they aren't considering the next stock market rebound.

The more the stock market goes down, the more shares we buy with each paycheck, and the richer we'll be when it goes back up. This dip could very well be the best financial thing possible to you. Just as long as it doesn't dip so low that you lose your job, you are golden.

I'm not quite sure wtf you're talking about. I have a 403B, not a 401k, as public schools are non-profit organizations.

But, allow me to explain the "best financial thing possible to you": The best financial thing possible was NOT losing 10% of your value. Because if one year ago, you and I had equal amounts of money, I would now have 16% more than you and would be able to buy 16% more of these stocks at a cheaper price.

Why? Because my advisor said "Take it out of stocks, now!" I said, "wtf are you talking about?" Long story short, I listened, stuck everything into safer investments, and earned about 5%. So, let's say that last year, a share was $10. You had $100 in it. (clearly numbers for illustrative purposes.) Today, you have $90, and can buy cheaper $9 shares. I reallocated my money somewhere safer. Today, I have $105 and those stock shares also cost $9 for me. You'll have 10 of them, I'll have 11.67 of them.

Losing money is never good. Ever heard of "buy low, sell high?"

 

[Special K]

Originally posted by: DrPizza

Originally posted by: dullard
The stock market is down, thus I (and most of the rest of you) are GAINING MONEY. To the uneducated investor, it may seem like the money is going down. But they aren't considering the next stock market rebound.

The more the stock market goes down, the more shares we buy with each paycheck, and the richer we'll be when it goes back up. This dip could very well be the best financial thing possible to you. Just as long as it doesn't dip so low that you lose your job, you are golden.

I'm not quite sure wtf you're talking about. I have a 403B, not a 401k, as public schools are non-profit organizations.

But, allow me to explain the "best financial thing possible to you": The best financial thing possible was NOT losing 10% of your value. Because if one year ago, you and I had equal amounts of money, I would now have 16% more than you and would be able to buy 16% more of these stocks at a cheaper price.

Why? Because my advisor said "Take it out of stocks, now!" I said, "wtf are you talking about?" Long story short, I listened, stuck everything into safer investments, and earned about 5%. So, let's say that last year, a share was $10. You had $100 in it. (clearly numbers for illustrative purposes.) Today, you have $90, and can buy cheaper $9 shares. I reallocated my money somewhere safer. Today, I have $105 and those stock shares also cost $9 for me. You'll have 10 of them, I'll have 11.67 of them.

Losing money is never good. Ever heard of "buy low, sell high?"

Your advisor made one correct prediction. Can he correctly tell you when to move back into the market? History has proven time and time again that no one is consistently able to predict the direction of the stock market.

If your broker can accurately forecast every major move of the market, he would be managing a hedge fund and making millions.

I would suggest reading A Random Walk Down Wall Street by Burton Malkiel. Buy and hold is a better strategy in the long run.

 

[dmcowen674]

Originally posted by: Casawi
This is my first year in this plan. I just checked to find out I am earning -8.5%, a little bit shocked since the rep or consultant guy or whatever told us... on average, one should be earning something 8%. That's a big difference...anyways I am just wondering if I should take any action? and how much others are losing.

and remember this is what Bush and Republicans wanted to do to Social Security.

 

[Mardeth]

Originally posted by: Special K

Originally posted by: DrPizza

I'm not quite sure wtf you're talking about. I have a 403B, not a 401k, as public schools are non-profit organizations.

But, allow me to explain the "best financial thing possible to you": The best financial thing possible was NOT losing 10% of your value. Because if one year ago, you and I had equal amounts of money, I would now have 16% more than you and would be able to buy 16% more of these stocks at a cheaper price.

Why? Because my advisor said "Take it out of stocks, now!" I said, "wtf are you talking about?" Long story short, I listened, stuck everything into safer investments, and earned about 5%. So, let's say that last year, a share was $10. You had $100 in it. (clearly numbers for illustrative purposes.) Today, you have $90, and can buy cheaper $9 shares. I reallocated my money somewhere safer. Today, I have $105 and those stock shares also cost $9 for me. You'll have 10 of them, I'll have 11.67 of them.

Losing money is never good. Ever heard of "buy low, sell high?"

Your advisor made one correct prediction. Can he correctly tell you when to move back into the market? History has proven time and time again that no one is consistently able to predict the direction of the stock market.

If your broker can accurately forecast every major move of the market, he would be managing a hedge fund and making millions.

I would suggest reading A Random Walk Down Wall Street by Burton Malkiel. Buy and hold is a better strategy in the long run.

I disagree. Althought its the best approach for 95%+ of people and I recommend it for most (like my parents) I still think that with some knowledge, common sense and time you do better.

This drop we are experiencing could be seen for a mile away. Not exactly suprising. I sold all my stocks in late december last year. And in that time the finnish stock market has lost about 30% of its value. Im about to start buying again, probably 5-10% of my portfolio value at a time. I start at 103% while those that held start at 70%. Thats huge.

For me its more important to avoid big losses because of simple mathematics. Losing 30% and then gaining 30% again doesnt result in being at square one again... On average I sell probably every 3 years or so. Im not trying to buy or sell at absolute high or low or time the market with every dip. Just the shift from bull to bear, which usually dont happen over night...

 

[PrinceofWands]

0, since I don't have one.

 

[kranky]

Since January, down -13%. Haven't changed how much I contribute. If I could, I'd invest more now, not less.

Stocks go up and down, folks. If you're young, don't bail out. The smartest thing you can do is start early. It will make an enormous difference when you get to retirement age. In a way, you're quite lucky - you can start investing while the market is down, giving you that much more profit when it rebounds.

Don't put everything in one investment. Read up on "asset allocation". And no matter who tells you something, no one cares about your money more than you do - so do your homework and learn something about your investments.

 

[DrPizza]

Originally posted by: Special K

Originally posted by: DrPizza

Originally posted by: dullard
The stock market is down, thus I (and most of the rest of you) are GAINING MONEY. To the uneducated investor, it may seem like the money is going down. But they aren't considering the next stock market rebound.

The more the stock market goes down, the more shares we buy with each paycheck, and the richer we'll be when it goes back up. This dip could very well be the best financial thing possible to you. Just as long as it doesn't dip so low that you lose your job, you are golden.

I'm not quite sure wtf you're talking about. I have a 403B, not a 401k, as public schools are non-profit organizations.

But, allow me to explain the "best financial thing possible to you": The best financial thing possible was NOT losing 10% of your value. Because if one year ago, you and I had equal amounts of money, I would now have 16% more than you and would be able to buy 16% more of these stocks at a cheaper price.

Why? Because my advisor said "Take it out of stocks, now!" I said, "wtf are you talking about?" Long story short, I listened, stuck everything into safer investments, and earned about 5%. So, let's say that last year, a share was $10. You had $100 in it. (clearly numbers for illustrative purposes.) Today, you have $90, and can buy cheaper $9 shares. I reallocated my money somewhere safer. Today, I have $105 and those stock shares also cost $9 for me. You'll have 10 of them, I'll have 11.67 of them.

Losing money is never good. Ever heard of "buy low, sell high?"

Your advisor made one correct prediction. Can he correctly tell you when to move back into the market? History has proven time and time again that no one is consistently able to predict the direction of the stock market.

If your broker can accurately forecast every major move of the market, he would be managing a hedge fund and making millions.

I would suggest reading A Random Walk Down Wall Street by Burton Malkiel. Buy and hold is a better strategy in the long run.

My advisor gave me one reason at first, I said, "you do realize that you just described the gambler's fallacy, right?" He went on to give me a ton of other reasons & pointed out that it wasn't just his opinion - the managers at the top were the ones who started informing all the advisors to tell their clients this.

 

[Linflas]

Nothing since I will not be withdrawing from it in the near future.

 

[Digobick]

Last three years:

2008 -9.54%
2007 4.58%
2006 12.31%

 

[alkemyst]

Originally posted by: DrPizza
My advisor gave me one reason at first, I said, "you do realize that you just described the gambler's fallacy, right?" He went on to give me a ton of other reasons & pointed out that it wasn't just his opinion - the managers at the top were the ones who started informing all the advisors to tell their clients this.

Well in dealing with 401k's it seems your brokerage had the 'daytrader' mentality...good luck with them.

I am sure they can tell you exactly when to buy back in as well.

With a 401K or any portfolio of stocks that are an aggregate vs individual items you have to look at the long term. Mid/small caps may be smart to bail out of if things are really tanking. However something like a Dow based would only hurt you in the long run.

The only time this is not true is when one is looking at retiring soon.

 

[Special K]

Originally posted by: DrPizza

Originally posted by: Special K

Originally posted by: DrPizza

Originally posted by: dullard
The stock market is down, thus I (and most of the rest of you) are GAINING MONEY. To the uneducated investor, it may seem like the money is going down. But they aren't considering the next stock market rebound.

The more the stock market goes down, the more shares we buy with each paycheck, and the richer we'll be when it goes back up. This dip could very well be the best financial thing possible to you. Just as long as it doesn't dip so low that you lose your job, you are golden.

I'm not quite sure wtf you're talking about. I have a 403B, not a 401k, as public schools are non-profit organizations.

But, allow me to explain the "best financial thing possible to you": The best financial thing possible was NOT losing 10% of your value. Because if one year ago, you and I had equal amounts of money, I would now have 16% more than you and would be able to buy 16% more of these stocks at a cheaper price.

Why? Because my advisor said "Take it out of stocks, now!" I said, "wtf are you talking about?" Long story short, I listened, stuck everything into safer investments, and earned about 5%. So, let's say that last year, a share was $10. You had $100 in it. (clearly numbers for illustrative purposes.) Today, you have $90, and can buy cheaper $9 shares. I reallocated my money somewhere safer. Today, I have $105 and those stock shares also cost $9 for me. You'll have 10 of them, I'll have 11.67 of them.

Losing money is never good. Ever heard of "buy low, sell high?"

Your advisor made one correct prediction. Can he correctly tell you when to move back into the market? History has proven time and time again that no one is consistently able to predict the direction of the stock market.

If your broker can accurately forecast every major move of the market, he would be managing a hedge fund and making millions.

I would suggest reading A Random Walk Down Wall Street by Burton Malkiel. Buy and hold is a better strategy in the long run.

My advisor gave me one reason at first, I said, "you do realize that you just described the gambler's fallacy, right?" He went on to give me a ton of other reasons & pointed out that it wasn't just his opinion - the managers at the top were the ones who started informing all the advisors to tell their clients this.

Of course they will always have a "convincing" reason why their advice is accurate. If you merely scan the financial media right now, you will find many analysts with "convincing" reasons why the market is going to move one direction or another. Obviously they aren't all correct, and based on the studies cited in the books I have read, none of them (or nearly none of them) will be consistently correct. As I said before, are you confident your advisor can tell you when to get back in the stock market so you don't miss out on a rally? Are you confident they can correctly predict the next sequence of economic slumps?

Obviously it's your money and you are free to believe anyone's advice you choose. I am only pointing out the fact that every study performed on market timing has concluded that no one can do it consistently in the long term.

 

[Capt Caveman]

Just checked mine. Only down 4.2% for the year. Not bad.

 

[amish]

don't know, don't care.

as the song says, :music:tIIIime is on my side:music:

 

[Engineer]

Originally posted by: DrPizza

Originally posted by: Special K

Originally posted by: DrPizza

Originally posted by: dullard
The stock market is down, thus I (and most of the rest of you) are GAINING MONEY. To the uneducated investor, it may seem like the money is going down. But they aren't considering the next stock market rebound.

The more the stock market goes down, the more shares we buy with each paycheck, and the richer we'll be when it goes back up. This dip could very well be the best financial thing possible to you. Just as long as it doesn't dip so low that you lose your job, you are golden.

I'm not quite sure wtf you're talking about. I have a 403B, not a 401k, as public schools are non-profit organizations.

But, allow me to explain the "best financial thing possible to you": The best financial thing possible was NOT losing 10% of your value. Because if one year ago, you and I had equal amounts of money, I would now have 16% more than you and would be able to buy 16% more of these stocks at a cheaper price.

Why? Because my advisor said "Take it out of stocks, now!" I said, "wtf are you talking about?" Long story short, I listened, stuck everything into safer investments, and earned about 5%. So, let's say that last year, a share was $10. You had $100 in it. (clearly numbers for illustrative purposes.) Today, you have $90, and can buy cheaper $9 shares. I reallocated my money somewhere safer. Today, I have $105 and those stock shares also cost $9 for me. You'll have 10 of them, I'll have 11.67 of them.

Losing money is never good. Ever heard of "buy low, sell high?"

Your advisor made one correct prediction. Can he correctly tell you when to move back into the market? History has proven time and time again that no one is consistently able to predict the direction of the stock market.

If your broker can accurately forecast every major move of the market, he would be managing a hedge fund and making millions.

I would suggest reading A Random Walk Down Wall Street by Burton Malkiel. Buy and hold is a better strategy in the long run.

My advisor gave me one reason at first, I said, "you do realize that you just described the gambler's fallacy, right?" He went on to give me a ton of other reasons & pointed out that it wasn't just his opinion - the managers at the top were the ones who started informing all the advisors to tell their clients this.

Of course if enough managers get enough clients to buy into that model, it becomes a self fulfilling phrophesy and the herd mentality starts with everyone dumping. The same will happen when th managers reverse course and start telling people to buy. The herd will pile back on driving it back up....again, a self fulfilling phrophesy.

To the OP, I looked...

Down 22% for the year. Maybe I'm in too risky funds in the 401k...

 

[IceBergSLiM]

Personal Rate of Return from 01/01/2008 to 09/16/2008 is -28.2%

 

[BlahBlahYouToo]

my first full year contributing and down 10% ytd.

 

[bigdog1218]

Originally posted by: Mardeth

Originally posted by: Special K

Originally posted by: DrPizza

I'm not quite sure wtf you're talking about. I have a 403B, not a 401k, as public schools are non-profit organizations.

But, allow me to explain the "best financial thing possible to you": The best financial thing possible was NOT losing 10% of your value. Because if one year ago, you and I had equal amounts of money, I would now have 16% more than you and would be able to buy 16% more of these stocks at a cheaper price.

Why? Because my advisor said "Take it out of stocks, now!" I said, "wtf are you talking about?" Long story short, I listened, stuck everything into safer investments, and earned about 5%. So, let's say that last year, a share was $10. You had $100 in it. (clearly numbers for illustrative purposes.) Today, you have $90, and can buy cheaper $9 shares. I reallocated my money somewhere safer. Today, I have $105 and those stock shares also cost $9 for me. You'll have 10 of them, I'll have 11.67 of them.

Losing money is never good. Ever heard of "buy low, sell high?"

Your advisor made one correct prediction. Can he correctly tell you when to move back into the market? History has proven time and time again that no one is consistently able to predict the direction of the stock market.

If your broker can accurately forecast every major move of the market, he would be managing a hedge fund and making millions.

I would suggest reading A Random Walk Down Wall Street by Burton Malkiel. Buy and hold is a better strategy in the long run.

I disagree. Althought its the best approach for 95%+ of people and I recommend it for most (like my parents) I still think that with some knowledge, common sense and time you do better.

This drop we are experiencing could be seen for a mile away. Not exactly suprising. I sold all my stocks in late december last year. And in that time the finnish stock market has lost about 30% of its value. Im about to start buying again, probably 5-10% of my portfolio value at a time. I start at 103% while those that held start at 70%. Thats huge.

For me its more important to avoid big losses because of simple mathematics. Losing 30% and then gaining 30% again doesnt result in being at square one again... On average I sell probably every 3 years or so. Im not trying to buy or sell at absolute high or low or time the market with every dip. Just the shift from bull to bear, which usually dont happen over night...

Exactly, this is proably the best investing option for the everyday person. Why people through their money away in a 401k is beyond me. In a market like this your guranteed to lose money for years, when you could be making a guranteed 3-4% in a bank account or CD.

Having a "long term" position in the market doesn't mean put your money in and 40 years later see what you have. Riding the market through minor bumps is fine, but having to sit through a huge correction is throwing money away. Unfortunately you're forced to do this with a 401k.