Page 2 of 3 FirstFirst 123 LastLast
Results 11 to 20 of 29

Thread: 401K - What did you learn about the 2008-09 Market Crash?

  1. #11

    Default

    I learned to take ALL of my money out of the markets. I learned the Wall Street boys are all thieves, and they can't be trusted with my money. I'm self employed, don't get a 401K match, and buy gold with after-tax money. I pulled all my gold out of my self-directed IRA and put the shiny stuff in a safe place.
    "The last time I saw a mouth like that, it had a hook in it."
    "What, did someone just step on a duck?"
    "That kangaroo stole my ball!"
    Al Czervik

  2. #12

    Default

    Quote Originally Posted by GopherGold View Post
    I learned to take ALL of my money out of the markets. I learned the Wall Street boys are all thieves, and they can't be trusted with my money.
    Yes, they are thieves. . . But if a person had an IRA / Roth IRA . . should they take it all out now and pay the premature penalty? (not if but) when we are hit with another round of shearing, bail-in's, corrections, crashes, won't it be a deeper cut than the penalty for early withdrawl?

    Quote Originally Posted by GopherGold View Post
    I'm self employed, don't get a 401K match, and buy gold with after-tax money. I pulled all my gold out of my self-directed IRA and put the shiny stuff in a safe place.
    But what did gold do in the 2008-09 crash . . . looks like around a 30% drop.
    No his mind is not for rent
    To any god or government
    Always hopeful, yet discontent
    He knows changes aren't permanent
    But change is

  3. #13

    Default

    Quote Originally Posted by Creeative2 View Post
    From 2009 to 2014 = $0.00 to $28,000.00 in 5yrs

    Compounding
    I hope your company is not Enron-esque.
    No his mind is not for rent
    To any god or government
    Always hopeful, yet discontent
    He knows changes aren't permanent
    But change is

  4. #14

    Default Burned by the market? If you haave time on your side, don't get skittish ...

    Quote Originally Posted by Creeative2 View Post
    I learned how quickly long time workers at XYZ company panicked when they saw their 401K's lose 20yrs of contribution in a heart beat. Literally in tears!

    I admit it was painful to hear them discuss that they would have to keep working till they dropped dead! Sad

    The great thing is most have recovered and are in better shape. For now-

    A few questions:

    How have you changed as a result of that experience if any?

    What is your 401K strategy?

    If and when the next market crash hits will you wake up to peeled onions?
    Those are great questions, and somthing I rarely see being discussed here. Without a doubt, many folks feel they got whipsawed by the market and now want to keep their distance. I had one co-worker get spooked by his dropping account balance and decided he had enough. He pulled out of a moderately agressive stock fund just as the market had hit bottom. Of course he missed the recovery of the market just as he was headed out the door to retirement. His timing didn't work out for him, along with many others like him. People need to realize they put their money at risk when it's linked to the stock market. There are no guarantees in this game. Some didn't get the memo.

    Quote Originally Posted by Creeative2 View Post
    How have you changed as a result of that experience if any?
    I didn't have a 401K during that time period (I do now) because I was focused on precious metals. I did have some stocks that I owned a long time but was mostly neutral on the market at that time. So, I guess that experience didn't change a thing for me.

    Quote Originally Posted by Creeative2 View Post
    What is your 401K strategy?
    Even though I have a 401K now, I'm not real keen on them. Reason being, you get taxed on your withdrawals from both contributions AND gains (unless it's a Roth). With that in mind, why not just invest for retirement outside a 401K and save on the fees to have it managed? I guess it could work out if you get into a lower tax bracket when you need to withdraw but even that may be a wildcard. Even though it soaks up some of my time, I'm perfectly comfortable managing my own portfolio. That said, my 401K is split between a 2020 Target Date Fund (75%) and an International Index Fund (25%). I'm 56 years old, in good health and don't have a set date to retire.

    Quote Originally Posted by Creeative2 View Post
    If and when the next market crash hits will you wake up to peeled onions?
    When the market crashes, I hope to laugh it off, just like I did the last time. In 2008/ 2009 I didn't need to sell any stocks and I figured things would recover long before I do need the money.
    Last edited by BodieGhost; 05-14-2014 at 03:42 PM.

  5. #15
    Join Date
    Nov 2013
    Posts
    2,470

    Default

    My company stock went from $2 to $23+ in buyout in a few years... A home run by anyones terms

  6. #16

    Default

    Quote Originally Posted by BodieGhost View Post
    Even though I have a 401K now, I'm not real keen on them. Reason being, you get taxed on your withdrawals from both contributions AND gains (unless it's a Roth). With that in mind, why not just invest for retirement outside a 401K and save on the fees to have it managed? I guess it could work out if you get into a lower tax bracket when you need to withdraw but even that may be a wildcard. Even though it soaks up some of my time, I'm perfectly comfortable managing my own portfolio. That said, my 401K is split between a 2020 Target Date Fund (75%) and an International Index Fund (25%). I'm 56 years old, in good health and don't have a set date to retire.

    <post redacted to shorten response>
    Bingo. Most people don't realize how much the skimmers take. Fees are a huge hit to any 401K. Fees from the 401K manager, the fund you invest in and taxes (some states don't defer taxes). Plus, who knows what the tax rate will be in the future, so "tax deferred" is a red herring.

  7. #17

    Default

    Quote Originally Posted by TwentyFourteen View Post
    My company stock went from $2 to $23+ in buyout in a few years... A home run by anyones terms
    Same here $8 to $49. I really want to walk away from the table a winner!!!!
    -"The Golden Rule"
    He who owns the gold, rules!

  8. #18

    Default

    Quote Originally Posted by Atlas Shrugged View Post
    Bingo. Most people don't realize how much the skimmers take. Fees are a huge hit to any 401K. Fees from the 401K manager, the fund you invest in and taxes (some states don't defer taxes). Plus, who knows what the tax rate will be in the future, so "tax deferred" is a red herring.
    Because you make an instant return via tax savings.
    The answers are in the data

  9. #19

    Default

    Quote Originally Posted by The Sage View Post
    I hope your company is not Enron-esque.
    My thoughts exactly. Enron was a home run for a while too.....
    The answers are in the data

  10. #20

    Default

    I have never had a 401k, but it is an interesting discussion.

    I would love to invest in something other than just cash in the bank and PMs (I love PMs, but I want to do some diversification too). Savings accounts in my country are paying slightly above the rate of reported inflation, but I doubt they are paying above the rate of real inflation.

    As for skimmers, they are hard to avoid here. In order to buy savings bonds, invest in the Stock Market, Mutual Funds, etc... you need to have a Checking Account at a bank (A savings account doesn't cut it). The Checking Account has a monthly fee of about $10 US dollars at a government bank, and about $15 US dollars at a private bank. This is the first piece of the pie the skimmers dip into. They then charge various fees depending on the investments you make. The advantage I guess is that you can make investments directly through the bank.

Page 2 of 3 FirstFirst 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •