401k and congress - Anyone else scared?

[Pandora]

Well, it would be worth researching.

As for how you structure it, that is entirely up to you, you have to find what your risk tolerance is. I personally would not dump it all in high risk investments, but it is your choice. I would also not bail out the market right now, unless you are just in desperate need of the money. It will come back.

I don't know if it is a good idea to stay 100% fixed, but as I said, you have to decide your own risk tolerance etc...

Whatever you do, do not simply bail out of the market right now simply because it is down, unless you really are in dire need of the money. You shouldn't put anything in the market you are not willing to lose.

It is also a good idea to keep a % in cash for times like this so you can buy in groups on the way down and average down on your losses. Just a thought.

the only way id take it out is if I thought obama could get his greedy grabbing fingers on it, other than that it can stay for how ever long. A percent of my paycheck goes into it but its a good thing because my work matches what I put in. I cant change the variable except once a year and I never seem to catch the right timing on that.

i think i picked extra risky on the 401k

I think stock is lower so I am buying more I guess.

 

[Dr.Who]

so I should cash out now ?

You should wait until the legislation is going up for vote. And then go on take the money and run whhoo oo ooo.

You won't be alone though. I foresee a stock market crash.

I just read post #15. Gen is right!

 

[Dr.Who]

Well you are going to feel dumb when the bill comes up, you cash out, and then the bill fails.

Don't jump the gun or overreact.

The only thing lost would be the penalty for withdrawal. But waiting too long could result in losing the whole wad.

 

[Dr.Who]

well i know this i have very bad timing

in 1999 i got my PERS statement that said i hardly made anything and all my friends made a ton and I asked how and they said go 75 percent variable and only 25 percent fixed. I at that time was 100 percent fixed. so I changed it to 75 percent variable and the market has not done so well since

My 401k I picked semi risky stuff, gosh in 2003 or something like that. I have been meaning to change back the PERS to all fixed and the 401k to less risky but I dread to call the woman because last time i did she talked me into a tsa or some other thing that i dont understand

I dont understand this kind of savings, and I dont understand war so I try to avoid those topics except for now. this topic has me a bit worried

Robert Kiosaki (sp?) says that you should only engage in investing if you understand it (not trying to be insulting I don't think I understand it enough myself). On top of how hard it is to understand markets then there is legislation on top of that (like this legislation we are talking bout now).

Here is a relevent quote:

"It will be of little avail to the people that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man who knows what the law is today can guess what is will be tomorrow."
-- James Madison

I would add that if you pay off credit card debt or your home mortagage then you can know exactly how much you are going to earn through savings. After those are paid off then you can buy CD's. I once did a calculation to compare this strategy to staying invested in the market (at an average of 10% and also at 6%) and paying off debt was only slightly less beneficial. (it does give you peace of mind that your future bills will be lower) In fact the biggest problem with paying of debt is that once you make the payment you can't withdrawal that money to use on something else (though you can borrow against it putting you right back where we started this discussion).

 

[Unite Our Nation]

I saw an article where Argentina SIEZED RETIREMENT ACCOUNTS and it was entitled, "Is Obama Taking Notes?"

 

[Dr.Who]

I saw an article where Argentina SIEZED RETIREMENT ACCOUNTS and it was entitled, "Is Obama Taking Notes?"

The private system in Argentina was first created in 1994 because the government system had failed. Now that the government itself is failing they need to money in the private accounts to cover their short term debts.

I heard the liberals talking about this on the radio and they said it was a failure of capitalism.

 

[BigRob]

The only thing lost would be the penalty for withdrawal. But waiting too long could result in losing the whole wad.

Not if you wait until the house passes it and then decide based on how the Senate is talking about it.