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1/25/2018 7:38:29 AM
Posted: 7/19/2002 6:42:11 AM EST
Feel free to flame me for not paying attention to my personal finances - I'm just not "into" it. I stay up on current events and you'd have to be living in a cave to not know that the economy is down. there - got that out of the way. I'd like suggestions on what to do with my 401k that's been consistently loosing money over the last few months. I have my funds spread between agressive and safe stocks, and some money market stuff. Should I sit tight, take action - what? TIA
Link Posted: 7/19/2002 6:46:42 AM EST
How old are you, and when do you plan to retire? I'm 40. My 401k is 90% aggressive "higher-risk" stocks, and yes I've been getting hammered recently. But I'm in it for the long haul, so I'm staying put. Tech stocks are low? Good. With each weekly contribution to my 401 I'm hopefully accruing more stocks that are undervalued. When (not if) the market rebounds, I'll hopefully be doing well. How well depends on how good my fund manager is. When I hit 50 I'll start moving more of my funds into "safe" investments. By the time I hit 60, the majority will be there. But if I'm going to retire and live in the manner to which I've become accustomed, I need to risk my funds now and hope I win. YMMV
Link Posted: 7/19/2002 6:52:24 AM EST
I agree with Kbaker. I'm 44, have a good salary, and am contributing the max to my 401k. I'm putting half into aggressive growth and half into a diversified international fund. The former has plummetted and the latter has been amazingly stable. Now is the time to be buying and not bailing out IMHO.
Link Posted: 7/19/2002 7:13:31 AM EST
IMHO, it's too late to bail now. Me and 13 1/2 other guys think that the market won't get much lower, so, you would be selling low only to buy higher, later. I'm 50+ and in the market for the long haul for my 401. I've seen the market come and go over the years and it's been important to me to realize that. Don't sweat the valleys too much and don't jump up and down too high when it peaks.
Link Posted: 7/19/2002 7:18:32 AM EST
I agree with KBaker and CalKid, buy them when they're on sale (like now). As far as Techs being "low" though, the S&P is STILL abit pricey. The avg P/E of S&P500 is 29, that's still just a tad high. Some Techs are still pretty expensive: Microsoft at 50 with P/E of 44 Cisco at 14 with P/E of 93 Intel at 19 with P/E of 73 But others are under the average P/E: IBM at 72 with P/E of 17 In any case, this bear market is creating a firesale on stocks that folks who are 20years from retirement should be buying up. But remember, diversify, diversify, diversify.
Link Posted: 7/19/2002 8:39:09 AM EST
I'm 37 and plan to retire....... who knows - either when I'm forced to or when I'm able to. :) Thank you gents for the advice.
Link Posted: 7/19/2002 8:59:31 AM EST
Originally Posted By Tate: I'm 37 and plan to retire....... who knows - either when I'm forced to or when I'm able to. :) Thank you gents for the advice.
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37 man your old. [:D] Hey shot you over an e-mail about this stuff.
Link Posted: 7/19/2002 9:13:57 AM EST
Link Posted: 7/19/2002 12:52:20 PM EST
Link Posted: 7/19/2002 4:25:38 PM EST
I checked my 401k the other day, it was so low it said I owed $2400.00. [:D] Damn TXLEWIS
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