401k help?

[ArmygreenUPSbrown]

I am so discussed with our 401K. Why doesn't such a big employer such as our put on some simple imformitive workshops. It like we are to dump our future savings into this huge money pool and hope that one day it will have made money. I want some way to track each fund daily. I was losing in the Russell and the S&P's so I moved my funds to the Bond fund, hoping to stop the blood loss and now it appear as if I'm losing money there also!! Some help me ,,,what am I doing wrong?

 

[Babagounj]

First off STOP watching your 401K daily. This will only cause you to go nuts.
Rule # 1 is that time is your best friend.
What I mean is that over time as the markets go up and down you will be getting shares at different costs ( low cost= many shares, high costs = fewer shares ) it will average out over many years.
Just pick one or two fund groups that you think will improve in the coming months or years. Put your money there , then sit back and watch what happens. Watch for trends, be prepared to switch funds when you think the time is right.
No one is absolutely sure about where the market will be going at any given time, so the best plan for you or anyone is to make up your own goals, and wait.

(ps I still make some wrong guesses, but every move made is worth the knowledge I've gained )

 

[FAVREFAN]

I am so discussed with our 401K. Why doesn't such a big employer such as our put on some simple imformitive workshops. It like we are to dump our future savings into this huge money pool and hope that one day it will have made money. I want some way to track each fund daily. I was losing in the Russell and the S&P's so I moved my funds to the Bond fund, hoping to stop the blood loss and now it appear as if I'm losing money there also!! Some help me ,,,what am I doing wrong?

What are you doing wrong? Exactly what you are doing/did is wrong. Don't be moving money around until you're within 5 years of retiring. If your in bonds now, you won't be buying into shares of the S&P500 while they are low. So I guess your plan would be to go back into the indexes when they are high? It is buy low sell high not buy high sell low. S&P500 will get you 8-10% per year average over any ten year period. Stick with it and like others advice here says, time is your friend. Don't over manage it.

 

[mountaingoat]

1. Look at your time horizon. At 29, you probably won't need the money until you're 60 or 65. That gives you 31-36 years. That's your time horizon.
2. That being said, you're in this for the long term. Time is on your side and you can afford to put your money in long-term investments. This means equities.
3. Give yourself a good mix of foreign stocks, domestic stocks, and small and large cap stocks. With our choices, that's Russell 2000 (small cap), S&P 500 (domestic large cap), and EAFE (foreign stocks).
4. For the next 20-25 years, you should be keeping it in a long-term capacity.
5. There's an option to rebalance every 90 days. Do it. Set your percentages for each fund (say, 33% in each), and rebalance it every 90-180 days. This "sells" your top performers, locking in those gains that you made, and "buys" your low performers, getting them at a discount.
6. Did I mention long term?
7. Look at your statements once a month. Any more than that, and you will be caught up in the emotion watching as some of your funds dip lower. This will happen. You may lose 20% (or more), but you will be up 20% the next year, and maybe 18% the following year. And, when you're down 20%, that's like buying shares in that fund at a 20% discount. Who doesn't love a sale?
8. When you start getting closer to retirement (5-8 years), post again to see how you should start shifting your portfolio.

Cheers!

 

[FAVREFAN]

1. Look at your time horizon. At 29, you probably won't need the money until you're 60 or 65. That gives you 31-36 years. That's your time horizon.
2. That being said, you're in this for the long term. Time is on your side and you can afford to put your money in long-term investments. This means equities.
3. Give yourself a good mix of foreign stocks, domestic stocks, and small and large cap stocks. With our choices, that's Russell 2000 (small cap), S&P 500 (domestic large cap), and EAFE (foreign stocks).
4. For the next 20-25 years, you should be keeping it in a long-term capacity.
5. There's an option to rebalance every 90 days. Do it. Set your percentages for each fund (say, 33% in each), and rebalance it every 90-180 days. This "sells" your top performers, locking in those gains that you made, and "buys" your low performers, getting them at a discount.
6. Did I mention long term?
7. Look at your statements once a month. Any more than that, and you will be caught up in the emotion watching as some of your funds dip lower. This will happen. You may lose 20% (or more), but you will be up 20% the next year, and maybe 18% the following year. And, when you're down 20%, that's like buying shares in that fund at a 20% discount. Who doesn't love a sale?
8. When you start getting closer to retirement (5-8 years), post again to see how you should start shifting your portfolio.

Cheers!

Pretty good post.

 

[BigBrownSanta]

$01k's (not a typo) are better than most pension plans, if one cares about their financial future.
It's your money and you should be able to access it/control it/ and take it with you to another workplace, if need arrives.
I guess the traditional plan protects us from our own stupidity.
The let "Big Brother" take care of me mentality,IMHO,is the biggest problem in personal financial planning.
If the average Joe doesn't have a clue, he/she should invest their time in learning some very simple basics, and, if they chose not to try and secure their own financial future, well, "stupid is as stupid does".

Extremely well said!!!

 

[brownmonster]

My K dumped 11 large last quarter. I'm gonna jump out the window. I won't even look at this quarter.

 

[upsmanckp]

Just keep at it and do not panic. Your in this long-term. A simple minded package car driver I know very well has amassed about 222k since the 1st offering. Remember the higher the return....the higher the risk.

 

[satellitedriver]

My K dumped 11 large last quarter. I'm gonna jump out the window. I won't even look at this quarter.

Just make sure you are on the first floor when you jump.
Look before you leap.
Good Luck

 

[dannyboy]

I took some really hard hits with the fidelity Magellan fund. You know, the one that State Street finally got rid of after I lost about 70 grand in one year.

But you know, I recouped the money lost and then some over the next few years without a problem.

Invest like there is no tomorrow. While not gambling, you need to be agressive with your investments. The russell fund worked well for me, as well as emerging markets funds.

In every investment there is some risk. the greater the risk, the greater the potential reward.

There will be down turns to go along with the upswings. Just hang tough and stick to your guns. The only ones shot in the back are the ones running from the fight.

d

 

[brownmonster]

I jumped out the window. Now I'm upsidedown in 3 foot of snow. I didn't spill my cocktail though.