My 401k has lost 16% of its value in about five weeks. I"m totally lost on what to do. Sell now and take a loss or ride it out.
I"m with Vanguard which is a pretty large company and I've got my money spread into about six different funds from Asia, Europe and the USA. Is everyone one loosing this much in such a short time frame? Just last week I read an article in the Houston Chronicle explaining who the "oil speculators" are and it said they were people who buy and sell funds for 401ks and pensions, amoung others.
The funds dumped money into oil to ride out the weak dollar and so on, making them money right now but wait until the market goes down, on oil that is. Well if thats the case why has my 401k lost 16% in five weeks?
I am far from an expert, but from what I hear and read, just ride it out if you have the time. Yes, I think all 401k's have taken a beating lately but jumping in and pulling all the money out may not gain anything either. I plan on retiring in just over 3 1/2 years, when I am 62, but I hope I can leave my money in the 401k until I reach 66 or better. Just remember, it is tied to the stock market, and the market has a history of peaks and valleys, just don't do anything hasty.
Dave & Pat
1999 Wanderer 230FB
2004 F250, XLT Crew Cab, V10, finally, enough power!
"No kids, no pets, trying to make it to retirement"
Yep, I too haven't looked at my 401K I'd probably end up having a heart attack, dying and then not needing it! Basically I was told to ignore it and not try to tweak the funds that I'm invested in, especially since I have no idea what I'd be doing!
I took all of my 401K info to my financial advisor a couple of months ago. With being with Fidelity, I can move $$$ around whenever I want (online), so quite a bit of it got moved to international funds and "not so high risk" funds.
I would go see a financial advisor and get some advice.
houtrz wrote: My 401k has lost 16% of its value in about five weeks. I"m totally lost on what to do. Sell now and take a loss or ride it out.
I"m with Vanguard which is a pretty large company and I've got my money spread into about six different funds from Asia, Europe and the USA. Is everyone one loosing this much in such a short time frame? Just last week I read an article in the Houston Chronicle explaining who the "oil speculators" are and it said they were people who buy and sell funds for 401ks and pensions, amoung others.
The funds dumped money into oil to ride out the weak dollar and so on, making them money right now but wait until the market goes down, on oil that is. Well if thats the case why has my 401k lost 16% in five weeks?
Sounds to me like you may have too much diversification. Even in good times, your gains will likely be diminished by the breadth of your funds. Some people have up to 10 - 20 different funds. That's almost guaranteeing watering-down results, betting on too many games all at the same time, if you will. Prospects do not look good going forward from all indications. Commercial real estate looks like it will be the next subprime crisis popping. Fuel prices have led to larger monthly unemployment. Much of the smart money is already in MM & CDs 6+ months ago. Many have already decided to sidestep the bear stock market to cash. More are following now every day as reflected in the fast declining market.
houtrz wrote: My 401k has lost 16% of its value in about five weeks. I"m totally lost on what to do. Sell now and take a loss or ride it out.
I"m with Vanguard which is a pretty large company and I've got my money spread into about six different funds from Asia, Europe and the USA. Is everyone one loosing this much in such a short time frame? Just last week I read an article in the Houston Chronicle explaining who the "oil speculators" are and it said they were people who buy and sell funds for 401ks and pensions, amoung others.
The funds dumped money into oil to ride out the weak dollar and so on, making them money right now but wait until the market goes down, on oil that is. Well if thats the case why has my 401k lost 16% in five weeks?
I've kept my 401k money in high growth funds for years. Last time the market took a dive I left the money all where it was at and I lost a good chunk of it. But I left it and I eventually made all the money back. It's going to stay right where it is this time too. If I was closer to retirement I may give different advice, but I'm leaving my money where it's at.
2004 National Tropi-Cal T-350, Class A, Triple slide, 330 HP Cat DP. 2006 Dodge Dakota 4x4 or
2002 Harley FLSTF Fat Boy on a Trailer or
2004 Polaris Quad on the Trailer
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