So Now What?

Feb 2018
3,152
2,359
Oregon
Yes I know. There are lots of options within most 401k plans. When you are close to retirement you shift to lower earning assets that are more secure so you do not risk much. When you are younger you are in assets that have higher earning potential but are more risky. Why is it you are questioning this basic stuff?
I'm questioning your exceptionally poor expression of your thoughts.

Every 401k plan I was in, --and it has been 13 years, --offered choices from mutual funds (usually those of the house) and little more. You're correct that as you near retirement you should begin transitioning to more stable investments, like money markets in my opinion, specifically so you can transfer the contents of the 401k to your own personal IRA where you will have complete flexibility and control, or can opt for the house to manage it for you. (I wouldn't.)

The reason for keeping total control is that a managed account will always be invested in a "balanced" position, mainly so that when it loses money, you cannot sue for mismanagement since standard and acceptable fiduciary guidelines were followed. And you will, in that case, be GUARANTEED to lose money, but it will be defensible.

So now, how about answering my question in post 27 above? ... How have you done?
 
Jul 2015
6,560
2,621
chicago
I'm questioning your exceptionally poor expression of your thoughts.

Every 401k plan I was in, --and it has been 13 years, --offered choices from mutual funds (usually those of the house) and little more. You're correct that as you near retirement you should begin transitioning to more stable investments, like money markets in my opinion, specifically so you can transfer the contents of the 401k to your own personal IRA where you will have complete flexibility and control, or can opt for the house to manage it for you. (I wouldn't.)

The reason for keeping total control is that a managed account will always be invested in a "balanced" position, mainly so that when it loses money, you cannot sue for mismanagement since standard and acceptable fiduciary guidelines were followed. And you will, in that case, be GUARANTEED to lose money, but it will be defensible.

So now, how about answering my question in post 27 above? ... How have you done?
I have lost a lot of money this month and will lose more. You have to ask me this question in a couple of years. As it sits now my earnings for the year have been wiped out. Years prior to that I average way higher than your 3.3%.
 
Feb 2018
3,152
2,359
Oregon
I have lost a lot of money this month and will lose more. You have to ask me this question in a couple of years. As it sits now my earnings for the year have been wiped out. Years prior to that I average way higher than your 3.3%.
Don't you realize my 3.5% was to provide a picture of what INFLATION DURING A CRASH AND SUBSEQUENT RISE would do to your assets?

You come on as though you're the genius and I'm the financial dummy, which is a dumb stance to assume since I was a financial planner at one time AND since I saw the indicators of this crash impending and beginning, and I got out of all my stocks and into a bear fund on Feb. 24 and have made money, while you sat tight and LOST money. If you're so savvy, you wouldn't have let that happen.

So, the takeaway here is that you would be wise to stop looking for ways to criticize me on things financial.
 
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Nov 2018
6,603
4,100
Rocky Mountains
A question for anyone:
Will the Federal government invest in the stock market, especially endangered industries such as airlines, to bolster stock prices just as the Fed has lowered interest rates to support the money supply and bond market?
 
Jun 2018
1,417
572
Toronto
France is going a different way: If you are too big to fail and didn't get that message, and fail anyway, you will be nationalized.
Which is way better than to just hand out money to the rich. In this scenario, they lose their company.

 
Nov 2012
17,612
5,775
Michigan
how did I know the market was going up? I have to credit my older brother, who always bets the wrong way, as soon as he said he was going all cash .... I knew.
 
Mar 2020
1,429
371
Land of Freedom
so the stock market tanked and your 401k has taken a big hit on a depression level. What ya gonna do about it?
Lots of people are running to cash, which is fear talking. Seems to me a lot of people have gotten rich betting against fear. At this point it can go either way. Either the virus gets a treatment and a vaccine or its 1929 all over again. If its depresion time what’s cash gonna do for you. The rumblings out of Washington is to fire up the printing presses and cover the country with money, which means inflation, big time. And your cash soon will drop faster than your stock portfolio did. Or, the treatments work and later the vaccines and the markets bounce back up in a few months.
So, I say if you sold out of the market, get back in, it’s the only course with an upside. If youre near or past working age you should have been and should stay half in cds and bonds regardless.
If you are too old then it is too late for "so now what". I have been making much by shorting everything since December last year. I play the Big Board, Nasdaq, Hang Seng, and Nikkei and will keep shorting till mid-May. Also, play Call options.

You must always be prepared and you must be gamebred. Nothing is hard if you are not sheep.
 
Jul 2014
16,447
10,822
massachusetts
so the stock market tanked and your 401k has taken a big hit on a depression level. What ya gonna do about it?
Lots of people are running to cash, which is fear talking. Seems to me a lot of people have gotten rich betting against fear. At this point it can go either way. Either the virus gets a treatment and a vaccine or its 1929 all over again. If its depresion time what’s cash gonna do for you. The rumblings out of Washington is to fire up the printing presses and cover the country with money, which means inflation, big time. And your cash soon will drop faster than your stock portfolio did. Or, the treatments work and later the vaccines and the markets bounce back up in a few months.
So, I say if you sold out of the market, get back in, it’s the only course with an upside. If youre near or past working age you should have been and should stay half in cds and bonds regardless.
Stocks will recover eventually, could be a while.
I'd like to see the government address liquidity for a while, and it has to line up a big stimulus package to drop after the lock down is over.
Thing is, after the first wave passes, there'll probably be a second wave, and a third and over and over until there's an effective vaccine.
So the next year or so should be tough for some folks, those that lose their jobs, and we can expect the worst job report in history on April 3. I think the worst job report was down 925,000 jobs, the month Obama took office. I expect the March numbers to be off a couple of million jobs at least. But if you are working from home, you're making serious bank, you're getting paid, you got your bennies, and you can't spend money on much of anything.
If the government handles this right, it will be over in a couple of years, if it fucks up, we're in the shitter for decades.

The best person to get us out of this would be Elizabeth Warren, she's the world's leading expert on consumer finances, but America has a system that doesn't pick the best person for the job.