401K Performance
- Thread starter Fred Forbush
- Start date
twoweeled
Well-Known Member
Yep! It's called diversification. But a bad market is still a bad market. Diversification won't always protect you from losses, it'll just cut the losses, some. Of course it cuts gains in a booming market too! It's a trade off.
twoweeled
Well-Known Member
You may be right in the definition of a bear market. I think it's 2 or 3 negative quarter in a row, or something to that effect. But look at a chart of what the market did between 2001 to around 2011. 10 years and look what it did. I think it's in the area of up 500 points, maybe less, in 10 years. yet I don't think that time is considered a bear market. Certainly isn't 3.5 years. But that was a bad market. We're sorta off the point now. The original point was referring to recovery time when your older in years. If you were 65 in 2001, your screwed until your 75. Those are iffy years my friend.
twoweeled
Well-Known Member
You may be right in the definition of a bear market. I think it's 2 or 3 negative quarter in a row, or something to that effect. But look at a chart of what the market did between 2001 to around 2011. 10 years and look what it did. I think it's in the area of up 500 points, maybe less, in 10 years. yet I don't think that time is considered a bear market. Certainly isn't 3.5 years. But that was a bad market. We're sorta off the point now. The original point was referring to recovery time when your older in years. If you were 65 in 2001, your screwed until your 75.
Since we have some stock people here. What is your opinion. are we building a base, or are we hitting resistance? Just thoughts and opinions.
olroadbeech
Happy Verified UPSer
sorry to say that i think the stock market is manipulated . but it is a catch 22. you almost have to invest in the 401k and IRA's and Roth's to take advantage of tax savings and save for retiremnet since you can not make any money in cash vehicles or depend on Social Security.
the government "assured" the American people that they would take steps to insure that the things that went wrong leading up to the 2008 crash would not happen again. That was BS. They have done NOTHING to prevent another crash. Derivatives ( in the trillions ) and the national debt are just two things can keep you from sleeping at night.
almost 3 quarters of our eggs are in the stock market and that worries us. the rest is in real estate. i sometimes wished we had learned more about real estate investing and bought some apartments or rental properties.
we just have to have a kind of blind faith in the American economic system . our family has done very well but i wish we could have confidence . the system is corrupt and i think the only way it will ever get better is if we have an almost total collapse and we start all over.
the government "assured" the American people that they would take steps to insure that the things that went wrong leading up to the 2008 crash would not happen again. That was BS. They have done NOTHING to prevent another crash. Derivatives ( in the trillions ) and the national debt are just two things can keep you from sleeping at night.
almost 3 quarters of our eggs are in the stock market and that worries us. the rest is in real estate. i sometimes wished we had learned more about real estate investing and bought some apartments or rental properties.
we just have to have a kind of blind faith in the American economic system . our family has done very well but i wish we could have confidence . the system is corrupt and i think the only way it will ever get better is if we have an almost total collapse and we start all over.
twoweeled
Well-Known Member
No question about it. Investing in a 401K is a no brainer. We and everyone should be in it.
I used to day trade (a little) years ago. I was invited to a brokers meeting with a few other traders. I was the small time guy, BY A LONG SHOT in this bunch. I don't know how I was invited to this small intimate meeting. I had the opportunity to talk with a couple of these guys. Market makers and stock traders from among the largest firms. One of them was telling me, there is no doubt they are able to swing the markets. Not always, but much of the time. They have so much money at their disposal, the leverage is enough to make day charts look like something they are not. But, that is mainly something that effects the day trader. The long term guy not so much. But no doubt, we don't have the knowledge and information the big guys have. The buy and hold just doesn't seem to as effective as it once was. Maybe just my perspective. I had days where I was just trying to make .20 on a stock and felt myself being taken for a ride. But it was fun!
olroadbeech
Happy Verified UPSer
it's probably to keep costs down if that is true. i like our 401k because of the low fees. we invest mostly in ultra low cost index funds with Vanguard funds anyway. also have some stocks in the SMA. mainly blue chips and some for fun like Harley Davidson and fed-Ex.
I agree we need a better 401k. But the fees are low and it's an easy way to save money.
Orion inc.
I like turtles
And exactly what "real estate" are you invested in?
I've never read such financial garbage as I have from you. Anyone who believes or follows your financial "advice" will lose.
Are you like mentally sick that you lie using Google to make you an "expert?"
The Driver
I drive.
I have now switched to the following contribution allocation (15% pre-tax):
70% S&P 500 Equity Index Fund
20% S&P 400 Midcap Index Fund
10% International Index Fund
Thoughts?
70% S&P 500 Equity Index Fund
20% S&P 400 Midcap Index Fund
10% International Index Fund
Thoughts?
Jackburton
Gone Fish'n
Seems safe if you're 10+ years out from retirement. If you wanted a more aggressive position, throw some in the the Russell. I'd also look at the REIT if you want to get some real estate exposure. I do 25% in SP400, International, REIT, and Russell. YTD is +9.74% My horizon for actually touching any of my 401k is 20+ years at the earliest, currently 39yrs old. Pension and outside investments will cover me initially when I leave, allowing my 401k to continue to grow without further contributions.
I'll tap into it when I actually need it, if say the pension isn't enough for example.
The Driver
I drive.
Ver nice. I like the aggressive angle due to the good possibility of the pension safety net. Maybe as retirement looms I could back away from the aggressive indices, but I was thinking of opening up a separate IRA that would be lower-geared and just cut the contribution level on the aggressive 401(k) as I get older. I'm only at 2nd year progression.
UpstateNYUPSer(Ret)
Well-Known Member
Why have two separate investment accounts?
Maintain the same contribution level but shift toward more conservative options when you get closer to retirement age.
It is better to have your ROTH money separate from your pre-tax money. Plus you have many more investment options outside of the 401K
UpstateNYUPSer(Ret)
Well-Known Member
You earn more interest on a larger pile of money than from two smaller piles.
Maybe, maybe not.My Dividend appreciation find in my IRA is crushing the S & P 500 in my 401k
The Driver
I drive.
This was what I was thinking. Dave has a point, too. I haven't opened a separate account yet anyway, saving cash for a big down payment first.
Many places will waive the minimum amount to open an account if you select an automatic investment plan
