Friday, July 11, 2008

401K Review

I just received my quarterly 401K statement, and I was blown away. Every fund option was negative year-over-year, except for the cash fund. Brutal.

4 comments :

Patient Renter said...

Yea. Glad I moved cash last fall. I haven't made much, but I am happy to have not lost any.

Mike said...

Yep, I moved all my stock money including all my 401K holdings into cash funds last June. (except for my foreign currency holdings and gold holdings)

I knew this economy was in for much more pain. Glad I did it, and have no desire to put my money back anytime soon.

Sippn said...

It shows how hard it is for investors to make money or at least stay ahead of inflation.

There is no easy solution, in fact, easy usually means surrendering value to inflation (CDs, cash, etc.)

Thats why large money searches for investments.

Wadin' In said...

Sippn hits the nail on the head again. We are all losing to inflation.

Patient Renter says: "I am happy to have not lost any..." P.R., we are not losing principal, but you do know we are losing to inflation, the silent thief.

Mike says: "no desire to put my money back anytime soon...."

I sold 50% of my stock in Dec. 2006 (Dow 11,800) and the other 50% in Dec. 2007 (Dow 12,350). I missed the run up to 14,000, but I slept well. Now, I am buying back into stock (Dow 11,200) and feel like I am doing the right thing. I am 30% invested so far.

I must say, I am usually early on all my calls, becasue unlike Patient Renter, I tend to be Impatient......

Hence the Wadin In handle....but wading is different then diving in and drowning. Little by little I keep moving back out of cash into stock and real estate. Time will tell.....I have a 25 year horizon...