401K money

Discussion in 'UPS Discussions' started by helenofcalifornia, Jun 19, 2007.

  1. helenofcalifornia

    helenofcalifornia Well-Known Member

    I just know the stock market is going to tank in a BIG way soon. Any suggestions out there on what I could move my money to temporarily to lessen the losses? You struggle so hard to make the money and all the gains you make in two months are wiped out in a single bad day and you have to start all over again up the ladder.
  2. Raw

    Raw Raw Member

    Stable Value Fund
  3. area43

    area43 New Member

    This is my strategy,(and believe me Im no stock brocker). To me its like gambling, and thats the way I play it. I give the max 25 percent gross. Usually by the end of december they stop taking it out of my check cause it reaches the max, I believe you can only put in up to 15,400 dollars a year. I tell you this because my whole mind set is to a least break even. Dont go under 15,400, stay in the black. Ok having said that I do a komcazee and dump my whole sum into the highest fund. I watch it every other day. I break down the 15,400 into 12 mons so roughly that is 1400 dollars a month I must not go under. Some months might be better than others, so I might have more wriggle room per say. If the fund consistently drops below my break point I will change to a more stable(real stable fund). Right now I have my whole fund which is roughly about a 117,000 in the 400hundred, earning about 13 %. My balance at the beginning of the year was 98,000. For me to break even, which I ll easily do for the year would be 113,000( I m heavy in the black,as of now). So as of now I m riding all my eggs in the highest fund. Some take a more diversified approach, but I find this is simple and it gets a real high return most of the time. I am comfortable with this method. The whole idea is having a so called line in the sand as to when to pull out. Helen, I wish you well. ( : osi
  4. tieguy

    tieguy Banned

    Bond market tends to go up when the stock market goes sour. I usually move my money into the stable fund and the bond market option when the market turns.
  5. pkgdriver

    pkgdriver Member

    Like Raw said the Stable Value Fund may be for you.

    If you KNOW its going down there are funds you can buy that go up when the market goes down. I.E. RYURX http://finance.yahoo.com/q?s=RYURX
    If the SP 500 goes down 5% in the next month this fund will go up 5%.
  6. Raw

    Raw Raw Member

    SP 500 is actually supposed to make new highs the next few months.
  7. toeknee2gx

    toeknee2gx New Member

    :confused:1..is the market that predictable? who told u that? unless its warren buffet..aahhh never mind. Doesnt matter who it is, if the market was that predictable, we would all be rich... SUPPOSED TO MAKE NEW HIGHS!! :lol: someone get me some kleenex from laughing so hard...
  8. beentheredonethat

    beentheredonethat Well-Known Member

    If the market was predicatable, everyone who invested would become millionaires. There is no such thing as a sure thing in the market. No one knows if it will go up or if it will go down tomorrow, the day after, next week or next year. All people have our hunches. The only thing I've seen that makes sense is the people who tend to do the best on average, keeps putting money into the market (weather it is a bull year or a bear year) and don't take money out of the market when it goes down. Since if you do, you're likely to miss out when it goes up. Personally, I moved most of my money into the Self Managed account and put it into a bunch of mutual funds. Latin America and China are real hot right now. I also do something similar to a previous poster, I track to see how the mutual funds are doing, the ones doing poorly I may move money out of into a new fund or one that is doing poorly. However, I try not to put all my eggs into one basket for example all in Latin America, or all in China. I want to make sure I'm spread out in different markets. As an aside. I read a book by Peter Lynch the guy who ran the Magellan Mutual fund a while ago. Real interesting read. He has one chapter talking about how in the long run you'll do much better in stocks then bonds.
  9. diesel96

    diesel96 New Member

    Uhmm! You sure bout that?

    Go 80/20 80 low risk/20 high risk until you feel the market is safe
  10. toeknee2gx

    toeknee2gx New Member

    one investment strategy doesnt work for everyone. Too many factors like disposable income, risk etc etc.... Martha just like everyone else who is heavily involved w/ money, did her DUE DILIGENCE!!! Do your research and make wise decisions based on your reseach. Youll hit a few stumbling blocks but in due time, youll see the benifits...
  11. HazMatMan

    HazMatMan New Member

    It's taking a crap right now. Do I panic? Or keep it in the risky funds and hope for the best?? (S&P 400, EAFE, Russell 2000) Or will it keep taking a crap for the summer?? Am I allowed to say crap????
  12. Channahon

    Channahon New Member

    I would suggest anyone within 5 years of retirement should find a financial planner. A planner can help you with your questions, make suggestions for your future and manage your stock and bond portfolios if you choose to do so.

    Of course, they will try to get all your money, and I have yet to do that. I give them some, see how they do, if I'm happy, I give them more. And I've also gone through 2 organizations over the last 3 years.

    If they don't make me money, I pull the plug and find somone who will, as this area is just as competive as any other.
  13. Raw

    Raw Raw Member

    I get the Lowry Report which states the SP 500 is 20% under-valued and Phil Grande at PhilsGang.com also on his coffee talk says that by the way the charts look we will get another rally after a pullback of around 3% as the feds are rigging the market by printing more money and such. I also here people say we are due for a huge correction at anytime as the down day volume is way higher than when the market goes up. I am personally dumbfounded as I got in the stable fund when the Dow was at 12,400!! :blushing: So what do I know, just sharing some things that I hear. I may go back in though if the market goes down again on Thursday the 21st.
  14. toonertoo

    toonertoo Most Awesome Dog Staff Member

    So whos betting, is now the time to go to the stable fund?
    I havent been doing my due diligence, but it looked pretty good for a while, now Im beginning to wonder if stable value isnt a good place to stay:confused:1
  15. QueenBee

    QueenBee The Cupcake Lady

    I’m no broker but I say spread your money out!

    High Yield Checking and Savings Account
    If you do not get interest on every dime that you put into the bank..then you have the wrong account. Our money will grow as we earn it!
    Fight for a 4% or 5% yield and you will have it made!

    Savings Bonds
    At least $1,000 a year….just in case of emergencies.
    I prefer short term and each month I recycle the investment.
    I keep a binder with my investments and mark them on the tax return

    Treasury Bills
    Treasury bills, or T-bills, are sold in terms ranging from a few days to 26 weeks..

    Straight Stocks
    I personally invest the least in stocks. The market is too volatile for me.

    Certificate of Deposit
    Great way to supplement your retirement

    Roth IRA
    I got this when I was 20 years old and it helped me pay for a semester of college with only putting in $50 a month.
    Like a 401K (Should be) you can take out the money that you invested minus growth.

    Take out your 401K if you leave a job. A lot of people don’t know that they can get back they money they put in minus the interest. I think it is a year’s time before you can not get the money back at all. If you don’t ask for it companies will not offer it
  16. area43

    area43 New Member

    tooner, I dont know all your stats, but I would hang tight, I believe there will be some speed bumps ahead, Raw has some good info. Theirs a tendency to have a knee jerk reaction to the market it. Being patiecent and having a watchful(knowledgable)eye helps to avoid or minmize the risks. tooner, raw and all the rest I wish you well. ( :
  17. ***Remember*****
    Take out your 401K if you leave a job. A lot of people don’t know that they can get back they money they put in minus the interest. I think it is a year’s time before you can not get the money back at all. If you don’t ask for it companies will not offer it[/QUOTE]

    Do not take your money out when you leave a job (they must keep 20% for taxes and you will get part of this back when you file your tax return.) Instead roll it over to an IRA or some companies allow you to roll it over to their 401k. I am a seasonal tax preparer for H & R and I cannot tell you the number of times I see this. There is also a 10% penalty if you are not at least 59 and 1/2. Or last year someone told a guy that because he was a first time home owner he could take money out of his 401k without penalty--you can do this with an IRA but not a 401k. Some companies will automatically cut you a check for your 401k if the balance is below a certain amount. (Set up an IRA with the money to avoid the 10% penalty and to keep your retirement funding intact.) I have never heard of losing the interest on a 401k--you should get your total balance back unless they charge you a transfer fee.

    I am a Suzie Orman fan and she said something about a year ago that really stuck with me. She is thinking that the tax rates we have right now are the lowest we will ever see. If you are going to end up with approximately the same amount of income (Pension and instruments that have never been taxed--401k's and IRAs--it makes no sense to put as much as possible in a 401k due to the higher tax rates she is thinking we will have. Instead, she suggested just getting your employer match in a 401k, fully funding a ROTH IRA is you are eligible due to income levels and putting the rest in a taxable account. Now, if you are not going to automatically put money in a taxable account--fund the 401k. It is easier to fund retirement when it is done automatically or we find excuses not to do it.

    I too am afraid of a stock market meltdown. I had 20% in the 500, 400 Russell, International, 10% in one of the target funds, and 5% each in the Stable Value and Govt Bond funds--trying to diversify but would move some money from a lower to a higher performing fund. Right now I have over 60% in the Stable Value and the Govt Bond funds. It ticks me off that there is no money market fund where you could go to cash, especially seeing 4.5% on INGDirect on savings. There are higher % internet savings accts, but I really like that one. Ease of use. I always like to listen to what other people think so please keep posting on this subject.
  18. QueenBee

    QueenBee The Cupcake Lady

    I stand corrected :crying:

    S. Orman is amazing!
  19. area43

    area43 New Member

    Lets not forget get Jim Kramer "mad money" Boo yyyah!
  20. teamsterdan

    teamsterdan Member

    while I'm no professional, I do consider myself a seasoned "investor", and let me tell you right off the bat that investing for retirement is abt. as individual a "sport" there is, that being said our plan is currently offering what I PERSONALLY consider as gifts, and should be taken advantage of by anyone who has 3 or more yrs. to INVEST, I'm not interested in debating weather or not these calls are legit, I've done my homework and currently stand behind them w/ my own $$, which is abt. all I can do.....I'm not going to elaborate on the details of these funds either, as were all adults and can decide for ourselves if the funds fit into your portfolio or not....the first being the EAFE fund, it's the 2nd "newest" fund and since it's inception @ $9 and some change, it's currently trading above $13, and does dip below $12 every now and again....it's a good fit because as we all know "being diversified" and "investing globally" are impt. to every portfolio, I have literally no doubt this fund will go well above $30 in my lifetime or in 20 yr. time frame and that is a conservative estimate....... the 2nd and most recent fund is the REIT......stands for Real Estate Investments Trusts......this is being served to us on a platter LITERALLY I would say it's as close to a "sure thing" as you get........ the play here is a bit more complex and while I have only recently got in I'd been in sooner had the EAFE fund not been doing so well, I'm split 60/40 now between them and the only "problem" now is not having more $$ to invest..........say what you will abt. real estate but this is how you make $$ here.... if it goes lower you'll win by being able to accumulate more of it @ a insanely low price, and when / if it goes up your riding the wave up so to speak, If I may be so bold.....I'd only add that you should also own microsoft when it dips below the $30 level.......and that the SMA acct. which opened in 2002 was a freaking god-send........truth be told my friends I wish we would all allow our $$ to work as hard for us as we work for it......MAX YOR 401K NOW REGARDLESS.... want to be a millionaire???? here's the "secret" formula....contribute the max (currently $15,000) for 20 yrs. (assuming your wages and the max also increase)........... earning an avg of a paltry 7% compounded annually ( you can get 5% + @ on-line banks like HSBC or ING) and you'll have your million..............which by then will be worth like $400,00.......but who cares, individual investors, can easily early 17% a yr. most who are serious and invest more time reading the financial pages than playing fantasy football or poker.........do well over 30% a yr. on avg..............