Need Help Investing

[dmek25]

Hoo, good luck. its a crazy world we live in

[over the mountain]

do what i did. build up a nice 401k over 5 years or so. have the stock market take a nose dive cutting your 401k in half. then when money gets tight and you need to pay the bills, you can take a loan out against your own 401k with penalties and all!!

i have a real question thoo. should i be putting money back into my 401k now? ive been putting money in my money market account (easier to access if you need some cash) and CDs.

[Schneed10]

Originally Posted by over the mountain

do what i did. build up a nice 401k over 5 years or so. have the stock market take a nose dive cutting your 401k in half. then when money gets tight and you need to pay the bills, you can take a loan out against your own 401k with penalties and all!!

i have a real question thoo. should i be putting money back into my 401k now? ive been putting money in my money market account (easier to access if you need some cash) and CDs.

Yes, you should be contributing to your 401K, especially if your company matches contributions.

If they match, and you don't take advantage of it, it's like walking right on by a table with a pile of money and a sign that says "free".

I know this is too late now, but never tap into your 401K before retirement, this is extraordinarily costly. Instead build an emergency fund to tap into when emergency strikes. Once the emergency fund is sufficiently established, increase your contributions to your 401K.

[firstdown]

Originally Posted by over the mountain

do what i did. build up a nice 401k over 5 years or so. have the stock market take a nose dive cutting your 401k in half. then when money gets tight and you need to pay the bills, you can take a loan out against your own 401k with penalties and all!!

i have a real question thoo. should i be putting money back into my 401k now? ive been putting money in my money market account (easier to access if you need some cash) and CDs.

If you have solid funds now is a great time to put money into a 401. Most of the time your buying units (might be call something else) and with stock prices down you units buy more stocks so when the stocks go back up you see a better return. When stocks are up an your investing your unit buy less stock for the same amount of money.

[Trample the Elderly]

Toilet paper and booze man, toilet paper and booze.

[budw38]

Originally Posted by Trample the Elderly

Toilet paper and booze man, toilet paper and booze.

Don't forget the smokes .... just own the Company , stay away from the nicotine.

[MTK]

My 401k has bounced back pretty strong after the '08 dive it took.

[Schneed10]

Originally Posted by Mattyk

My 401k has bounced back pretty strong after the '08 dive it took.

Mine did too, because I didn't panic, didn't pull my money out or switch it to bonds. Instead I rode the rollercoaster down and then back up again, when the stock market bounced in 09. Now I'm not too much worse for the wear, because I kept a level head.

[MTK]

Originally Posted by Schneed10

Mine did too, because I didn't panic, didn't pull my money out or switch it to bonds. Instead I rode the rollercoaster down and then back up again, when the stock market bounced in 09. Now I'm not too much worse for the wear, because I kept a level head.

I actually increased my contribution shortly after the crash, just checked on my 401k and it actually has more than doubled since 11/08.

[saden1]

Originally Posted by Mattyk

I actually increased my contribution shortly after the crash, just checked on my 401k and it actually has more than doubled since 11/08.

Really? What was your rate of return in 2009 and what funds are you buying?

[MTK]

Originally Posted by saden1

Really? What was your rate of return in 2009 and what funds are you buying?

According to my year ending statement for 2009 my annualized rate of return was 26.5%

My funds are:

Janus Twenty 60%
Vanguard Total Bond Market Index Fund 20%
Vanguard Wellington Fund 20%

[over the mountain]

Originally Posted by Schneed10

Mine did too, because I didn't panic, didn't pull my money out or switch it to bonds. Instead I rode the rollercoaster down and then back up again, when the stock market bounced in 09. Now I'm not too much worse for the wear, because I kept a level head.

trust me i tried not to tap into it b/c i knew taking money out (after i took the hit) was stupid since the market would bounce back. i wish i could have started pumping more money into it a year ago but i was broke broke and had no other alternative but to take a loan out.

i was between a rock and a hard place.

im sure my situation was like alot of other people. some of us just didnt have enough of a cushion to ride it out.

[Schneed10]

Oh, and it goes without saying, live within your means! Don't spend more than you earn. In fact, spend less than you earn, save the rest.

[saden1]

What about the lottery? I heard that's a great investment vehicle.

[firstdown]

Originally Posted by saden1

What about the lottery? I heard that's a great investment vehicle.

It must be because I have to wait in line 5 minutes everyday to pay for my coffee as the cashier has to run all those lottery cards for people who have no business playing the lottery.