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-   Money Talk (https://www.airlinepilotforums.com/money-talk/)
-   -   401 Question (https://www.airlinepilotforums.com/money-talk/37769-401-question.html)

seafeye 03-05-2009 08:12 AM
401 Question
 
So far this year my 401K is down 8.6%


Wouldn't we be better off to either put that money in a savings account or buy GE stocks? At what point do we have to stop feeding Wall St?
If i kept my money in a matress for the last two years i would have $4500 more than i have today. WWSD?

DLAJ77 03-05-2009 08:22 AM
excellent question!!! Im calling T.Rowe right now!

joethepilot 03-05-2009 08:25 AM
Originally Posted by seafeye (Post 572533)
So far this year my 401K is down 8.6%


Wouldn't we be better off to either put that money in a savings account or buy GE stocks? At what point do we have to stop feeding Wall St?
If i kept my money in a matress for the last two years i would have $4500 more than i have today. WWSD?
Incorrect.

1. If you store your money under your mattress, you will not be getting company match. If you contribute exactly at company match you need to loose > 50% to be better off storing under your mattress.

2. Any investment banker will tell you that 401K's and other retirement investments are long term investments and not "Casino Investments" as such you should not let your emotions control when you buy and or sell stocks. Unless you are planning on retiring in the next 5 years, the market will rebound before you retire, and remember once you pull all that money out of your 401k not only do you have to pay taxes and early withdrawal fees, but it can't go back in with all the benefits you enjoy now.

HoursHore 03-05-2009 08:31 AM
Times like these are when you make money later.

robthree 03-05-2009 08:57 AM
Originally Posted by joethepilot (Post 572538)
1. If you store your money under your mattress, you will not be getting company match.
What is this "company match" you speak of?
Just kidding, but only a little.


Seriously, most any stocks bought today are at bargain prices compared to what they'll trade at in say ten years or so. If the companies survive to that point in time.

Flyboyrw 03-05-2009 09:58 AM
GE would be a great longer term type investment. It's down to 6.84, lowest it's been in a long, long time.

DLAJ77 03-05-2009 10:18 AM
Originally Posted by joethepilot (Post 572538)
Incorrect.

1. If you store your money under your mattress, you will not be getting company match. If you contribute exactly at company match you need to loose > 50% to be better off storing under your mattress.

2. Any investment banker will tell you that 401K's and other retirement investments are long term investments and not "Casino Investments" as such you should not let your emotions control when you buy and or sell stocks. Unless you are planning on retiring in the next 5 years, the market will rebound before you retire, and remember once you pull all that money out of your 401k not only do you have to pay taxes and early withdrawal fees, but it can't go back in with all the benefits you enjoy now.
Of course you dont pull it out you just move your money in times like this to a plan thats not growth focused for the time being.

jungle 03-05-2009 02:19 PM
Originally Posted by seafeye (Post 572533)
So far this year my 401K is down 8.6%

If this is true you are doing better than most at only an 8.6 percent loss. If you had kept your money in a mattress for the last 12 years or so you would have done better.

Led Zep 03-05-2009 02:45 PM
Originally Posted by seafeye (Post 572533)
So far this year my 401K is down 8.6%


Wouldn't we be better off to either put that money in a savings account or buy GE stocks? At what point do we have to stop feeding Wall St?
If i kept my money in a matress for the last two years i would have $4500 more than i have today. WWSD?

At what point do we have to stop feeding Wall St?
Not feeding Wall Street is a big reason why our 401k's are in the shape that they are in. More people will invest when the market begins an upward swing. But does that make any sense? Most of us flock to the stores when they hang the "Christmas in July Sale" signs in the windows.

Wouldn't we be better off to either put that money in a savings account or buy GE stocks?
Depends. If you are saving up for a car or looking to establish an emergency (rainy-day) fund, then I would put it in savings. If time is not of the essence and you're willing to take a gamble, then I would put it into the market.

At the end of the day it is only money. :)

joethepilot 03-06-2009 06:19 AM
Originally Posted by Led Zep (Post 572770)
At the end of the day it is only money. :)
DING DING DING we have a winner.


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