Friend with 401k lost $12,000 from retirement w/in last 24 hours

[Whoa_Nelly]

:scared:

Says she's going to bank tomorrow, and hoping things move back up...

meanwhile, she's pretty much in shock right now

[Winnscott]

1. A friend of mine lost $15,000

And this was before the bad news of the past week. She told me that in the wake of the first batch of bad news from a couple of weeks ago.

[Whoa_Nelly]

2. aw geez!

This is bad shit happening...and it's not even close to being over

[BlueInPhilly]

63. I lost $20K in one day!!! N/T

[crispini]

3. I'm not even looking at my 401k.

Seriously, people need to understand that they should start getting out of stocks and into cash positions the closer they actually come to retirement. If you're thinking about retiring in 5 years and you're still in stocks, you're not doing it right. :(

[doc03]

4. My 401k is down $28000 since October 2007

it's worse I have deposited about $6000 since then. I'm in a rather conservative fund about 50% equities 50% fixed income.

[Sherman A1]

73. I'm down 36% since Jan 1st

just charming what our dear little Republican friends have managed to pull off.

[MountainLaurel]

5. Got my quarterly statement today

My IRA has lost 1/5 of its value since January.

[NeedleCast]

6. She hasn't lost anything unless she actually pulls out of her 401K

That would be a huge mistake.

Her 401K is probably not controlled by her local bank (although I guess it's possible). Pulling her retirement savings out right now would be a giant mistake.

[Whoa_Nelly]

11. She says she's leaving it where it is

and yes, it's with a bank. She's just upset about what this means over all and where we;re ehading.
She's guaranteed what she has in her account...she just finds the whole thing appaling knowing that this is not near the end of the fail before things turn on the upswing...

[truebrit71]

7. Wow that sucks. I have been 100% cash since May.

You have to seriously evaluate your portfolio right now, especially if you are close to retirement.

The markets will come back...but it will take quite some time...

[aasleka]

8. Not sure why folks haven't moved their portfolios to US bonds?

I did it last year and while it grows VERY slowly it does not lose money. Ask her how much she made in the year prior?

[NeedleCast]

9. Not a smart move unless you are close to retirement or think there will be a total collapse

I'm moving hard back into equities. It's somewhat of a risk, but at my age (34) I think it's the thing to do.

[MercutioATC]

12. I disagree. When you see a storm coming, move the supplies to a safe place.

I've been in treasuries for quite a while...I've saved myself roughly $60k so far.

[NeedleCast]

21. I think the smart move for younger people right now is equities

but, different strokes...every investor should do what they're most comfortable with.

[Common Sense Party]

64. True. I'm 40 and I'm probably 90% in equities. This is a great

chance to snatch up shares on sale. Some people think you should only buy stocks when they're marked up. I don't know why.

And I will reiterate what another poster said: Don't STAY 100% in stocks right up to the day of retirement. That way lies madness.

[DeschutesRiver]

47. I've been in treasuries too for quite awhile - after the tech bust years ago,

I no longer trust my ability to time my market exits perfectly:)

My retirement would have been completely DOA had I not moved things, and as it was, I still took a bit of a loss to do the treasury move (last year). But we had JUST almost made up the tech bust losses; that is not made any money, just recouped losses. Took years of the greatest bull run just to do that much. And I freaking am not about to lose it and start over again. At 50/55, we are looking toward retirement, and are conservative enough in our investing now to realize it isn't all that far away.

This seems worse to me than usual, so I am assuming that the market and economy will recover fully in 10-15 years, fingers still crossed on that. I am willing get back into stocks only when it makes sense for older people like us to consider it. OTOH, dh is seeing these low stock prices like they were shiny objects.

I told him that if he wants to catch a falling knife, or take a different bet than me, he can find some things here to sell on ebay, or take some of his income and buy something. But he isn't going to touch the freaking retirement that is in treasuries to try a stock market gamble right now. Even the people I know who are really good at this are having a difficult time figuring out what is a safe money making move in such a fluid situtation, so I am not even gonna try it.

Again, we are 10-15 years out from retirement, and have the tech experience that we just recouped - if we were younger, I'd do things a bit differently (except part would still remain in treasuries, due to the exceptional fraud and fear running rampant out there. I'd have to hedge bets a bit).

[aasleka]

18. Industrials after January 20th, infrastructure, infrastructure, infrastructure

[Renaissance Man]

10. Stable Value Fund

My 401(K) is with Fidelity, and I moved it over to a stable value fund (which is unchanged whether or not the market goes up or down)almost a year ago when the market started those 100 and 200 point bounces. I knew then, that the economy was going to get worse and the DOW was going to start dropping 400+ points daily.

Talk about the luck of the draw. I was able to keep all of my gains, and then place all of my money in the stable value fund. My heart goes out to everyone who has seen so much of their money go the way of the market.

[aasleka]

45. Yup, saw it coming too. Tried to tell my co-workers as well.

[FourScore]

76. These can also be riskier than you may think.

They invest in in life insurance policies rather than stock. Just to put that into perspective, AIG was one of the nation's largest insurance companies.

I also considered the stable value fund option, but decided against it with the collapse of AIG.

[orleans]

13. i was listening to part of randi's show today

i thought she said her 401 is gone--poof.

[doc03]

14. I heard that too, I think she was exaggerating

that would be impossible unless she had it all in one stock and it became totally worthless.

[Historic NY]

15. move money to bonds

[doc03]

20. Historically that would be a dumb move, you would be locking

in your loses. Now is the time to buy while stocks are cheap. Stocks have always come back eventually it may 5 years 10 15 but eventually they will come back.

[Historic NY]

22. no one knows how far the tank is going bonds will help hold onto

some of the losses. Even the screamer is saying to move some money.

[doc03]

30. That's why asset allocations are important

depending on your age and tolerance for loss. I had roughly 40% of my assets in equity funds and 60% in fixed income. After the market crashes is not the time to move from equities to fixed income.

[Common Sense Party]

66. If by screamer you mean Jim Cramer...

I run my investments according to what I call the Cramer Contrary Concept: Whatever Jim Cramer says to do, do the opposite.

Cramer is the moron who told people--in MARCH 2000--to go 100% into a bunch of dot-coms with NO track record and NO earnings.

Cramer is a speculator, a gambler. He is no investor. People who want to be intelligent investors should ignore Cramer, and pay more attention to Buffett and Graham and Dodd.

[NeedleCast]

23. Exactly!

[tuckessee]

16. She never really had that money.

It was fantasy money. Hypothetical. Like money riding on a series of roulette bets.

[earth mom]

51. Yep, Monopoly money. nt

[Mind_your_head]

17. I moved a lot of my money into a cash position

but I left some in stocks - stocks that I feel will probably rebound. They have now lost slightly more than 1/2 their value. I 'm torn between leaving them where they are or moving them out. I'm inclined to leave them where they are and wait (a long time probably) for the/some rebound.

BUT, I toy with the possibility of a "total crash". However, I realize that I don't REALLY know what a 'total crash' would mean. Everything - all stocks would be worthless and never regain any value?

Any thoughts/insight would be appreciated.

[garlicmilkshake]

26. I cashed out all my stocks 8 weeks ago and been buying real estate.

I don't know if it's the smartest thing to do but at least I have some tangible assets...where their value is going I'm not sure but they're
pretty much real...and I can see and touch them.
:shrug:

[galileoreloaded]

37. Not good. 1 in 6 homes now underwater. Forclosures to TRIPLE.....

http://online.wsj.com/article/SB122341352084512611.html

Stop buying overvalued assets. Another 30-40% to go, and that from JP Morgan.

[garlicmilkshake]

39. Ah...I've been buying only unimproved land...for cheap. A buck an acre or so.

...
on edit: not exclusively, I did buy a Ferrari I've wanted for a hundred years. :D

[galileoreloaded]

41. Well now were talking.....

been buying farm land lately.
Sadly, no Ferrari. Too many dirtbikes:silly:

[boppers]

19. Gambling sucks.

Unfortunately, many people are tempted into doing it, hoping that they'll be the lucky ones.

[nadinbrzezinski]

29. 401 K is NOT gambling but hey, whatever trips your trigger

perhaps you should bury your money in the garden

[boppers]

36. Putting money into stocks *is* gambling.

Always has been, always will be.

If a person wants to invest in something with guaranteed growth, well, they're living in the wrong economic system.

We don't have that here, welcome to capitalism, where all payouts involve risk.

[nadinbrzezinski]

42. So tell me genius

how do you save for your retirement?

There are days I truly hate ignoramus that scold others for doing what is prudent MOST of the time

[tuckessee]

43. No one seems to scolding anyone but you.

The other poster is simply pointing out the undeniable fact that having money in the stock market is gambling or speculation.

You obviously don't like the terms "gambling" or "speculating". You probably prefer the term "investing".

Just like I "invested" 50 bucks in Vanderbilt football last Saturday.

[nadinbrzezinski]

44. The reality is that this is not bright

that is the reality

And right now NOT investing is almost impossible in case you've missed HOW the saving systems are set

You are an employee for a county... tell me, WHERE are those funds ( a percentage) invested?

If you have a 401K same story

and so it goes

So to say that is ignorant at the worst level

By the way... your investing on vanderbilt was actually riskier given history... but that is another matter

:banghead:

Muricans are truly ignorant of history, and macro and mirco economics

By the way... FREE HUMONGOUS CLUE... what he said applied in 1929, but not today... given how EXTENSIVE these gov'ment and non gov;ment funds work

[boppers]

57. I may be a moron.

However, I haven't lost 40% of my money in the last year, because I wasn't gambling on stocks.

Others certainly have.

Even county employees, who had "pension" funds.... going into gambling.

1929 rules still apply for non-FDIC accounts. That's stocks, bonds, money-markets, etc.

The post-crash reforms to *prevent* another crash were designed to preserve the money of savers, not the money of gamblers.

[boppers]

54. You put money into things that have guaranteed payouts.

Oh, wait, there aren't any.

Lacking that, the best you can hope for is things like FDIC insured savings accounts, or other low-risk instruments which aren't as subject to shifting global economic pressures.

For example, most small credit unions seem to be coasting along quite handily right now.

[nadinbrzezinski]

55. Hmmm,... small banks were hit HARD today

Thought you'd like to know that

[boppers]

58. Banks are not Credit Unions.

:)

Small Private/Corporate banks which derived a large chunk of their income by assuming, and then laundering, bad debt, got slammed.

As they could have expected, as they were just selling bad debt upstream.

[nadinbrzezinski]

65. I know, but if the small ones got hit,

I am not counting on credit unions not getting hammered

For the record my accounts are at a credit union

[Common Sense Party]

68. Prudent risk is not the same as gambling.

If you think long-term, intelligent investing is the same as gambling, that means you've never really done the former.

[earth mom]

52. Bullshit. The stock market is nothing but gambling.

Now I see why you were such a cheerleader for the bailout. Gotta save yourself first, right? :puke:

[nadinbrzezinski]

56. Wrong... I actually understand this little thing called macro economics

you may want to try it sometime.. there are even good intro books on the subject at your local bookstore\ or library... crack a book...

I also understand this little thing called HISTORY... you may want to crack a book from time to time

I am getting tired of this shit with some tin foil hatters here.... just as ignorant and proud of it as your counterparts in the real of the free republic... not calling a freeper, just an average ignorant, anti intellectual American

[Common Sense Party]

69. Please define "the stock market."

Perhaps according to YOUR definition "the stock market is nothing but gambling."

Your definition is probably very different from mine. And Warren Buffett's.

[HughMoran]

61. 401k is long term

You get off kicking people who are down and depressed?

Ass.

[minnesota_liberal]

24. Have had everything in Principle Conservation for over a year

And haven't looked at it for at least 4 months. What good would it do?

[itsrobert]

25. Join the club

I'm down big time.

But I'm hopeful the Obama's confidence will help the economy in the long run.

[gopbuster]

27. I just posted some info that may help or not.....

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4190907&mesg_id=4190907

[Mind_your_head]

32. Thanks for that post/info. n/t

[roody]

28. I'm glad I've spent a lot of money on a good time.

[BeFree]

59. me too

Instead of waiting to retire, I went ahead and mostly retired. Still, ya gotta feel bad for all those who invested and now have been divested.

[TZ]

31. Not looking at mine

My Dad always told me when the markets really bad to NOT look as I am fairly young, its likely I will be able to recover my losses in the future and not to panic.....Yes, most of my investments are in fairly high risk stock....

[a la izquierda]

49. My uncle told me the same thing.

I'm only 31. Won't retire for at least 35 years (I will be a college professor in 2 years). He said to just relax, keep putting a little money in my IRA each month while in grad school(low risk medium yield mutual fund) and ignore it. He told my husband NOT to invest right now, as it's basically like taking $1000 and tossing it out the window at the moment. So even though I've lost $100 since last Friday, of the $700 I had in there, I'm just going to relax because I don't need it.

[leftofthedial]

33. I lost over $500,000 since bush seized power

over 4000 families lost WAY more than money since these evil fucks took over.

sorry for your friend.

[greblc]

34. One of our lead engineers lost $96,000

He's in his late 30's so he'll have time to catch up but that's gotta hurt.

[1]

35. except... nobody lost anything from their retirement unless they cashed in that 401k today...

your 401k is worth what it is worth on the day you cash in. the day you sell.

if that's not today, i suggest you relax and let this thing play out. only fools or the desperate sell when things are low, when things are bad.

its goes up! and you think you gained this. it goes down... and you think you lost that. the truth is... it is worth what it is worth when you sell.

and only then.


if this "day to day" value of your investments is your view of that world, i would suggest that you stay out of the 401k game entirely and stuff cash or euros or gold into your mattress.

you won't make any money along the way. but it will give you more peace of mind...

[harun]

53. Correct. And almost no one is going to cash it all on one day. They will

sell small portions of it as they need it in retirement.

[Common Sense Party]

71. It's a good thing the value of our homes isn't printed in the paper

or on a website people can pull up with a mouse click.

People would be freaking out every few years about "how much money we're losing"!

Ummm...if you're not about to sell it, today's price doesn't mean much.

[alittlelark]

38. We put 1/2 our liquid into Everbank Braz. CD's last year

I would recommend Latin American CD's and Co's. They have a low connection to Euro-Am-ME stocks.

[B Calm]

40. I'm not so worried about my 401K, it's my IRA's that bother me.

[Common Sense Party]

70. Why? How are they invested compared to your 401k? n/t

[anarch]

46. well, look on the bright side, at least $12k isn't worth what it used to be...

oh...wait. Maybe that's not a good thing....


P.S. - my 401k is hurtin' for certain as well. I don't consider myself a "gambler" or whatever, this is pretty much the only game in town besides just putting your money in a savings account when it comes to retirement plans.

[Swede]

48. Only if she cashes out now. If she doesn't need the money leave it.

If she needs it now,well that is not good.

[fed_up_mother]

50. We're just throwing ours in the trash without looking at it, since there's not a damn

thing we can do about it. sigh

[HughMoran]

60. Me? over 60 grand gone from 401k

$27000 this month alone.

I'm kinda depressed - I've worked my ass off and I can just see my company kicking me while I'm down/

This sucks :(

[NJGeek]

62. I'm down probably 60k or more...

them's the breaks...

hopefully we can turn this around when the Democrats run Congress and the executive

[Common Sense Party]

67. How many shares did she own two days ago?

How many shares does she own today?

What has she lost?

[tom_paine]

72. Not to worry. Your missing money is doing fine and well in a Bushie Account down in the Caymans

It says hello.

[nadinbrzezinski]

74. Not quite... that money went POOOFFFF!

[tom_paine]

75. Some of it did. maybe even most. But you know as well as I that is not the whole story.

Some of that money was almost certainly pocketed by Bushies "in the know". Maybe a lot of it.

But you might agree to disagree with that.