401K

[Blues Man]

Depends on his age.
It will take some time to recoup those losses, if he is near retirement - he is screwed

Not really,

you do not cash in your entire portfolio when you retire.

 

[rightwinger]

You're not lying about losing a third or more during the 2008 great recession.....

But your claim that you were not making money in the stock market until Trump is more than likely false! The stock market was growing years before Trump took office, under Obama!!

The Stock Market nearly tripled under Obama
If you didn’t make money, you were either a fool or a Republican

 

[rightwinger]

We are seeing the dangers of having your entire retirement based on a 401k.
People retire thinking they are millionaires but a major stock market drop along with high inflation will eat that up.

 

[Blues Man]

We are seeing the dangers of having your entire retirement based on a 401k.
People retire thinking they are millionaires but a major stock market drop along with high inflation will eat that up.

Investing is not dangerous.

And it isn't complicated.

There are proven long term strategies that are easy to implement

 

[rightwinger]

Investing is not dangerous.

And it isn't complicated.

There are proven long term strategies that are easy to implement

You trying to tell me putting my entire retirement into Bitcoin is not a good idea?

 

[Blues Man]

You trying to tell me putting my retirement into Bitcoin is not a good idea?

Where did I say that?

Stop making shit up.

 

[Care4all]

Best advice is keep buying, weekly or monthly, if you have another 20 years.....

I've been through it with the 2001 and 2008 crash, and panicked too.... It was scary!!!!!


Continue to put in your 401k what your company matches....and don't look at it for a few years.... You'll be okay. Put it in the safest place, right now....call or get advice on safer places in your 401k....for now.

 

[TNHarley]

and don't look at it for a few years

you got that right

 

[WorldWatcher]

you got that right

TNHarley

Just curious, what is your timeline to retirement (in general): now, 5-years, 10-years, 20-years?

WW

 

[rightwinger]

you got that right

Doesn’t hurt to look at it

Just don’t overreact

 

[TNHarley]

TNHarley

Just curious, what is your timeline to retirement (in general): now, 5-years, 10-years, 20-years?

WW

Im 36.
Im hoping around 25 years.

 

[iamwhatiseem]

Investing is not dangerous.

And it isn't complicated.

There are proven long term strategies that are easy to implement

You are overlooking the obvious - the VAST majority of people have no idea how to do any of that, even if you showed them... or they will forget about it... or just not do it.
Most people look at their 401ks as a source of loans. Most people are largely and completely irresponsible with their money to the nth degree.
And this is why replacing pensions with 401ks was doing a disservice to the public.
It was designed by the oligarchy to remove retirement burden from corporations.... more profit. PERIOD.
Now it is then easy for you to say - "well that is their problem"... no... it is OUR problem because the HUGE chunk of people are going to be receiving public assistance because they get on disability etc. because they are too old to work - still have a mortgage, still have car payments but can't work.
That is the already happening scenario.

 

[JohnDB]

you got that right

Actually....
The best thing currently is cash.
All investment vehicles and instruments are nosediving like Biden's popularity.
I warned people about this over a year ago when it became apparent what was happening with the negative borrowing rates.

You can't take money out of a 401K but you are usually allowed to direct what you are invested in. So ask if the funds can be put into a money market account and at least you will get interest. You won't grow a lot of money but that should stop the bleeding.

 

[Blues Man]

You are overlooking the obvious - the VAST majority of people have no idea how to do any of that, even if you showed them... or they will forget about it... or just not do it.
Most people look at their 401ks as a source of loans. Most people are largely and completely irresponsible with their money to the nth degree.
And this is why replacing pensions with 401ks was doing a disservice to the public.
It was designed by the oligarchy to remove retirement burden from corporations.... more profit. PERIOD.
Now it is then easy for you to say - "well that is their problem"... no... it is OUR problem because the HUGE chunk of people are going to be receiving public assistance because they get on disability etc. because they are too old to work - still have a mortgage, still have car payments but can't work.
That is the already happening scenario.

None of it is rocket science.

In fact almost every employer's 401k host will give the employees free advice.

 

[rightwinger]

Im 36.
Im hoping around 25 years.

Good age, I retired at 61

 

[gipper]

That describes the majority of Americans.
We are the first generation since SS came out that is so ill prepared for retirement.
Where I work now we have 3 people over 65 (one is 72) that are still working because they borrowed against their plans years ago, didn't contribute off and on etc.
They are still living paycheck to paycheck. Eventually, they will end up in public assisted housing and tax dollars will have to support them and their medical bills.
But hey!... the investor class and corporations are raking it in not having to pay into pensions!!

What’s even more frustrating and upsetting is public workers still get pensions and often SS benefits too. This results in many public sector retirees receiving gold plated retirements.

 

[WorldWatcher]

Im 36.
Im hoping around 25 years.

Thank you.

Then I still stand by what I said earlier. Let it ride, don't try to take it out now. If you do that you will owe the taxes that were deferred AND on top of that will have a 10% penalty for early withdrawal. To compound both of those, having that money come out as income could move you to a higher tax bracket for all your earnings.

So look at your fund allocation. You might be more comfortable with a more conservative allocation. Normally a lower rate of return but not as impacted by the stock market. However this means locking in your losses because when stocks rebound (and over the long term they will), you will have locked yourself out of those gains.

Now with that said I don't claim to be a financial wiz. Just the opposite in fact. However I'm also old school and will have 3 different revenue streams based on pensions, not counting my 401K. Meaning my wife and I have 6 pension revenues and two 401Ks. My 401K offers an option not to select specific funds, but to select a retirement horizon, they will then reallocate funds every year. Moving from "aggressive" in the early years, to "moderate" in the middle years, to "conservative" in the years leading up to retirement. Because I'm lucky enough to have pensions, even though I plan to retire in 2025/2026 I've set my retirement horizon to 2035/2036 as being moderately aggressive is OK in our situation because not all out eggs are in one basket.

WW

 

[gipper]

Im 36.
Im hoping around 25 years.

At your young age, it’s best to stay in the market. You’ve got a long time before retirement. You also need to get yourself educated on financial issues.

 

[Blues Man]

What’s even more frustrating and upsetting is public workers still get pensions and often SS benefits too. This results in many public sector retirees receiving gold plated retirements.

As long as they pay in what's the problem?

 

[iamwhatiseem]

None of it is rocket science.

In fact almost every employer's 401k host will give the employees free advice.

Still missing the point.
Nothing you are saying is incorrect. You are 100% right.
But you are not accounting for the fact that the majority of Americans are so financially irresponsible they will do nothing of the sort.
And that is OUR problem. WE will be the ones paying taxes to support them later.