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  • September 17, 2008 at 11:09 AM #13856
    ibjames
    Participant

    When I look at the different funds offered by my 401k, I see that the YTD earnings for them are all -10% or greater.

    I have since changed them to more conservative funds.. typically for retirees (I think they may be bonds) that have a return of 3% of the year. While they are conservative, I have reduced my losses this year.

    When talking to a friend, he said that it’s stupid to do that, that you ride it down, because you are buying shares at cheaper prices as you are doing it.. so when they go up again, you have stocks at cheaper prices accumulating wealth.

    My rational is that I am reducing my losses now, so I can move them back into funds after all the bank losses are over and when the stock market is no longer fat and bloated.

    Any opinions on this? He thinks you should not touch your 401k and just let it sit until a few years before you retire. I think he has his money just in index funds

    September 17, 2008 at 11:24 AM #271460
    zzz
    Participant

    Many experts believe you should not actively manage your 401k if you are very far from retirement. You are trying to time the market. Your friend is right, you will lose $$ in what you currently hold, but you are dollar cost averaging.

    If you really think about it, you want the market to stay cheap, depressed, whatever you want to call it without it becoming apocalyptic, for all the years leading up to say your 50s and then rally like hell leading up to your retirement. Buy low, sell high.

    September 17, 2008 at 11:24 AM #271696
    zzz
    Participant

    Many experts believe you should not actively manage your 401k if you are very far from retirement. You are trying to time the market. Your friend is right, you will lose $$ in what you currently hold, but you are dollar cost averaging.

    If you really think about it, you want the market to stay cheap, depressed, whatever you want to call it without it becoming apocalyptic, for all the years leading up to say your 50s and then rally like hell leading up to your retirement. Buy low, sell high.

    September 17, 2008 at 11:24 AM #271707
    zzz
    Participant

    Many experts believe you should not actively manage your 401k if you are very far from retirement. You are trying to time the market. Your friend is right, you will lose $$ in what you currently hold, but you are dollar cost averaging.

    If you really think about it, you want the market to stay cheap, depressed, whatever you want to call it without it becoming apocalyptic, for all the years leading up to say your 50s and then rally like hell leading up to your retirement. Buy low, sell high.

    September 17, 2008 at 11:24 AM #271748
    zzz
    Participant

    Many experts believe you should not actively manage your 401k if you are very far from retirement. You are trying to time the market. Your friend is right, you will lose $$ in what you currently hold, but you are dollar cost averaging.

    If you really think about it, you want the market to stay cheap, depressed, whatever you want to call it without it becoming apocalyptic, for all the years leading up to say your 50s and then rally like hell leading up to your retirement. Buy low, sell high.

    September 17, 2008 at 11:24 AM #271771
    zzz
    Participant

    Many experts believe you should not actively manage your 401k if you are very far from retirement. You are trying to time the market. Your friend is right, you will lose $$ in what you currently hold, but you are dollar cost averaging.

    If you really think about it, you want the market to stay cheap, depressed, whatever you want to call it without it becoming apocalyptic, for all the years leading up to say your 50s and then rally like hell leading up to your retirement. Buy low, sell high.

    September 17, 2008 at 12:00 PM #271470
    HLS
    Participant

    You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS

    September 17, 2008 at 12:00 PM #271706
    HLS
    Participant

    You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS

    September 17, 2008 at 12:00 PM #271717
    HLS
    Participant

    You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS

    September 17, 2008 at 12:00 PM #271758
    HLS
    Participant

    You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS

    September 17, 2008 at 12:00 PM #271782
    HLS
    Participant

    You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS

    September 17, 2008 at 12:02 PM #271475
    ibjames
    Participant

    [quote=HLS]You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS[/quote]

    no

    September 17, 2008 at 12:02 PM #271711
    ibjames
    Participant

    [quote=HLS]You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS[/quote]

    no

    September 17, 2008 at 12:02 PM #271722
    ibjames
    Participant

    [quote=HLS]You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS[/quote]

    no

    September 17, 2008 at 12:02 PM #271764
    ibjames
    Participant

    [quote=HLS]You are all drinking the Kool-Aid that the industry wants you to.

    They want you to keep investing, and hope, wish and pray that it will be there when you need it.

    They collect commissions and management fees all the way along, regardless of whether you ever make a dime. They get rich, withoout ANY risk.

    They tell you that in the long run, it will go up.
    Maybe it will and maybe it wont. NO guarantee.
    I can guarantee you that in the long run you will be dead.

    The market is a casino.

    We could be in a 10-20 year bear market. We could go in to a depression. The market could rally big.

    Do you feel lucky ??

    HLS[/quote]

    no

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