my 401K mutual funds are taking a beating.

[OutHouse]

i have 6 different mutual funds in my 401K and all of them are down nearly 3 bucks a share since last week. Uggggg.

 

[kranky]

Since I'm years from retirement and make regular contributions to my 401k, I'm all for lower stock prices now.

Is your account lower now than it was in December?

 

[OutHouse]

i bet it is, the stock prices are lower than they were last fall. im scared to look at how much money i have lost.

 

[broon]

I've lost $300 in mine over the past two weeks. Fortunately I have plenty of time to make it up.

 

[kranky]

December was a bad choice. I checked and the S&P 500 is at the same level now (after today's trading) as it was in mid-November. Nasdaq now is where it was in early November.

That's really not a meltdown.

 

[OutHouse]

Originally posted by: kranky
December was a bad choice. I checked and the S&P 500 is at the same level now (after today's trading) as it was in mid-November. Nasdaq now is where it was in early November.

That's really not a meltdown.

so what happens if there is a meltdown and stocks like mine keep going down. one of my funds 2 weeks ago was going for 48.00 a share and today its going for 45.00 a share. what if it keeps going down to say 30.00 a share all my money would pretty much be gone. not much of a retirement if that happens.

 

[DaveSimmons]

You haven't lost a dime unless you're retiring this week.

Take the long view adn relax: your contributions this month will do very well when the market bounces back.

All the shares of VFINX I bought last June when the S&P 500 was sharply down (from 1300 to 1240) are up 12% in 9 months, even after this little dip.

 

[DaveSimmons]

Originally posted by: Citrix
so what happens if there is a meltdown and stocks like mine keep going down. one of my funds 2 weeks ago was going for 48.00 a share and today its going for 45.00 a share. what if it keeps going down to say 30.00 a share all my money would pretty much be gone. not much of a retirement if that happens.

Then you buy lots of guns, get a ride built for combat and learn to speak with an Aussie accent, since you'll be living the Road Warrior life in the End Times.

 

[kranky]

Originally posted by: Citrix
so what happens if there is a meltdown and stocks like mine keep going down. one of my funds 2 weeks ago was going for 48.00 a share and today its going for 45.00 a share. what if it keeps going down to say 30.00 a share all my money would pretty much be gone. not much of a retirement if that happens.

Don't take this the wrong way, but if you are concerned about that possibility, you should not be investing in stocks or mutual funds. It's for long-term investors who can live with the inevitable fluctuations.

Look at this chart of the S&P 500 over the last 50+ years. Is there ANY 20 year period where you could have lost money?

 

[halik]

Originally posted by: Citrix
i have 6 different mutual funds in my 401K and all of them are down nearly 3 bucks a share since last week. Uggggg.

I bet you still have 30 years before you can cash out...

 

[LS20]

mine is getting slammed, too

good thing its only 1/3rd of my actual "retirement savings"

 

[OutHouse]

Originally posted by: kranky

Originally posted by: Citrix
so what happens if there is a meltdown and stocks like mine keep going down. one of my funds 2 weeks ago was going for 48.00 a share and today its going for 45.00 a share. what if it keeps going down to say 30.00 a share all my money would pretty much be gone. not much of a retirement if that happens.

Don't take this the wrong way, but if you are concerned about that possibility, you should not be investing in stocks or mutual funds. It's for long-term investors who can live with the inevitable fluctuations.

Look at this chart of the S&P 500 over the last 50+ years. Is there ANY 20 year period where you could have lost money?

shouldnt everybody worry about it? i mean look what happened when a little burp hit chinas market....

 

[HeroOfPellinor]

Originally posted by: Citrix

Originally posted by: kranky
December was a bad choice. I checked and the S&P 500 is at the same level now (after today's trading) as it was in mid-November. Nasdaq now is where it was in early November.

That's really not a meltdown.

so what happens if there is a meltdown and stocks like mine keep going down. one of my funds 2 weeks ago was going for 48.00 a share and today its going for 45.00 a share. what if it keeps going down to say 30.00 a share all my money would pretty much be gone. not much of a retirement if that happens.

As our 401K administrators tell us all the time, falling prices are good. They mean you pick up more shares with your contribution. As you near retirement, you'll modify your 401K account and shift money from stocks to bonds and assure yourself cash when you qualify for distribution.

Also, a 401K should only be part of your retirement plan.

 

[dullard]

Originally posted by: HeroOfPellinor
As our 401K administrators tell us all the time, falling prices are good.

Bingo. Someone get this guy a medal. 401k's falling far from retirement age is the best thing that can happen to a person saving from retirement. When your next payment goes through, you'll get a lot more stock for the money. The stock price will recover, and you are far better off than if you got very little stock for your money.

The only time 401k's falling is a problem is if you are or are about to withdraw money from it.

Case 1: Fund price goes from $25 today to $250 when you retire. Your $100 contribution this month buys you 4 shares at $25. When you retire that $100 is worth $1000.

Case 2: Fund price goes from $25 today to $5 tomorrow and $250 when you retire. Your $100 contribution this month buys you 20 shares at $5. When you retire that $100 is worth $5000.

Now, do you want $1000 or $5000. Your choice. I smile big when the stock market falls for this very same reason.

 

[OutHouse]

Originally posted by: dullard

Originally posted by: HeroOfPellinor
As our 401K administrators tell us all the time, falling prices are good.

Bingo. Someone get this guy a medal. 401k's falling far from retirement age is the best thing that can happen to a person saving from retirement. When your next payment goes through, you'll get a lot more stock for the money. The stock price will recover, and you are far better off than if you got very little stock for your money.

The only time 401k's falling is a problem is if you are or are about to withdraw money from it.

ok, ill calm down now.

 

[TXHokie]

Note to self: "Must-quit-checking-balance."

 

[DaveSimmons]

Originally posted by: Citrix
shouldnt everybody worry about it? i mean look what happened when a little burp hit chinas market....

You remember the dot-com crash? If you'd put all of your 401k into an S&P 500 fund right before the crash, you'd already have fully recovered and made some more money on top.

Buy and hold good stock index mutual funds, don't panic, retire happy.

 

[HeroOfPellinor]

Originally posted by: Citrix

Originally posted by: dullard

Originally posted by: HeroOfPellinor
As our 401K administrators tell us all the time, falling prices are good.

Bingo. Someone get this guy a medal. 401k's falling far from retirement age is the best thing that can happen to a person saving from retirement. When your next payment goes through, you'll get a lot more stock for the money. The stock price will recover, and you are far better off than if you got very little stock for your money.

The only time 401k's falling is a problem is if you are or are about to withdraw money from it.

ok, ill calm down now.

Check with your plan administrator. They may have a mutual fund that automatically and gradually reallocates your investments from mostly stocks to mostly bonds as you near a targetted retirement date. Could be some nice peace of mind.

And, ya, check your balance only once a year and then only to rebalance your funds.

 

[alrocky]

From W. Bernstein's The Four Pillars of Investing:

Market Crash --- Bull Market
Good ................ Bad ....... Young Saver
Bad .................. Good ...... Retiree

"a young person saving for retirement should get down on his knees and pray for a market crash, so he can purchase his nest egg at fire sale prices"

 

[thirdlegstump]

The market fundamentals still show a bit of a slowdown even after the plunge. I wouldn't expect any gains for awhile. Housing market is still taking a ****** and tech is not exciting. I'd say buy now and be patient.

 

[Agentbolt]

I was going to sound off in this thread until I remembered I cashed in my 401K to pay for a trip to Myrtle Beach and some gummy bears back in November. Looks like I got out just in time!

 

[Clocker]

I am buying the max contributions to my Roth SP Index IRA. So, I hope this market bounces back strong.

 

[Legend]

Better sell now and secure your losses!

 

[thomsbrain]

everyone's mutual funds are taking a beating.

this, too, shall pass. just hang in there and keep contributing.

 

[thomsbrain]

Originally posted by: Citrix

Originally posted by: kranky
December was a bad choice. I checked and the S&P 500 is at the same level now (after today's trading) as it was in mid-November. Nasdaq now is where it was in early November.

That's really not a meltdown.

so what happens if there is a meltdown and stocks like mine keep going down. one of my funds 2 weeks ago was going for 48.00 a share and today its going for 45.00 a share. what if it keeps going down to say 30.00 a share all my money would pretty much be gone. not much of a retirement if that happens.

look at it this way. in the long run, it will be back up. in the meantime, every dollar you put in while the price is low is worth more once the share price climbs back up.