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Took my balance in my 401K program out of all stocks, bonds

  1. Jul 21, 2011 #1

    rhody

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    I just took my balance in my 401K program out of all stocks, bonds, and corporate stock funds and put the into FIXED. I never thought I would see this day happen, but what I see (not happening) in Washington in addressing the debt limit gives me cause for concern.

    IMHO, it is better to have my shares converted to cash and invested into a fixed income fund, than to risk another major nosedive (this time with no rebound on the other end) like we had a few years ago. Someone else who I know and respect did the same thing yesterday. Are any of you making similar moves with your retirement funds, or doing other things to protect your investments ?

    Rhody... :uhh:
     
    Last edited by a moderator: Dec 20, 2011
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  3. Jul 21, 2011 #2

    Borg

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    Re: Call me crazy, but I just...

    My wife and I did the same thing a week ago for the same reason.
     
  4. Jul 21, 2011 #3

    lisab

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    Re: Call me crazy, but I just...

    I'm nervous too, but staying put. I have a good 15 to 20 years to go before I will start pulling money out of my retirement accounts...sigh :frown:.
     
  5. Jul 21, 2011 #4

    rhody

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    Re: Call me crazy, but I just...

    Borg,

    The total is up to three now here at work and will report if the numbers climb in the next two weeks. Three in one day, including myself is significant. Some people are clueless and will panic if the stock takes a big nose dive. People I care about have been warned, in the end their decision's not to dump the stock will prove wise or foolish, let's see how this all plays out.

    Rhody...
     
  6. Jul 21, 2011 #5

    rhody

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    Re: Call me crazy, but I just...

    http://www.cnn.com/2011/OPINION/07/21/gergen.no.way.debt/" [Broken]
    Not coming a reasonable compromise because of extreme entrenched positions... on both sides is what has me most concerned... I can't say it more simply or clearly than that...

    Rhody... :frown:
     
    Last edited by a moderator: May 5, 2017
  7. Jul 21, 2011 #6

    Borg

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    Re: Call me crazy, but I just...

    My wife and I got burned on the last one in October 2008. We were on a cruise in the Med and couldn't do anything other than watch the news. I thought about getting out before we left but didn't want to pay the taxes. The losses ended up being far worse than any taxes. :rolleyes:

    We are going on vacation again next month and don't want to end up in the same 'boat' as last time. I understand that there's no correlation but, it seems like the market always drops when we go on vacation. Lately, the areas that we visit have also been hit by disasters within a few months after we leave.
     
  8. Jul 21, 2011 #7

    turbo

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    Re: Call me crazy, but I just...

    I'm staying put, because I'm already well-diversified. If my mutual funds take another dive, oh, well. The IRA has bounced back sufficiently from the last loss to convince me that my allocations are good enough to withstand a major disruption.
     
  9. Jul 21, 2011 #8

    Borg

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    Re: Call me crazy, but I just...

    I have a while to go for retirement also. We're just moving the money to safer funds in the retirement accounts. And, I didn't change the new contributions - they still go into S&P Index Funds.

    We will eventually get back in but, for now, I don't want to be involved with the silliness that's going on in Washington.
     
  10. Jul 21, 2011 #9

    rhody

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    Re: Call me crazy, but I just...

    http://money.cnn.com/2011/07/21/news/economy/Debt_ceiling_states/" [Broken]
    Rhody...

    P.S. Sadly, in our state this is off everyone's radar (radio talk shows usually lead the way), but so far have been fairly quiet, a few rumblings yesterday, but it doesn't seem to have gotten everyone's attention, yet...
     
    Last edited by a moderator: May 5, 2017
  11. Jul 21, 2011 #10
    Re: Call me crazy, but I just...

    I follow the stocks, but I don't invest in them. I just make mental bets. That way, if the stock goes down I don't lose any money, I just lose my mind.
     
  12. Jul 21, 2011 #11
    Re: Call me crazy, but I just...

    As I could sense it coming, I forewarned colleagues roughly a year prior to the collapse of the .com’s and the Enron fiasco that occurred roughly 10 years ago and I suggested that they instead pay down the principles on their mortgages. Most scoffed, quickly declaring my suggestion a poor financial decision on my behalf, as they felt they could make a killing per their and the employer’s 401K contributions and various 401K investment options.

    When the vast majority lost the better portions of their 401K investments a year later, they whined at work almost daily about how they had lost their shirts and now they wouldn’t be able to retire, but I hadn’t lost a cent, just as I had stated would be the case. In fact, I was steadily getting closer to paying off my mortgage, just as I had suggested to others. By 2006, after a total of just 8 years, my mortgage was paid off. I lost nothing and saved far more than I could have ever gained via any 401K especially during that volatile period.

    Unlike my know-it-all colleagues, I didn’t scoff at their 401K investment decisions, as it was their choice to freely make. I simply realized the volatility associated with their choices and I’ve never agreed with the considerable penalties of withdrawing your own financial contributions. In any case, many afterward stated that they wished they had followed my suggestion rather than having simply outright lost everything as they had, but of course, such is a meaningless wish. Such is the nature of hindsight.

    Speaking from experience; through these difficult economic times, it’s a delight not having a monthly mortgage payment. Even low paying job positions allow for a comfortable lifestyle when there’s no monthly mortgage to pay. Naturally, I don’t expect anyone to alter their existing plans based upon my success story. I merely offer as much for those who are perhaps considering doing the same. I have no regrets whatsoever, as it’s nice to own my home free and clear.

    I offer one last thought…

    The United States has never been in worse shape than it is at this point in time and it hasn’t gotten any better for the 20 million Americans unemployed for several years now, no fault of their own. The jobs simple aren’t there. 20 million people didn’t simply ban together to quit their jobs, for if they had, there’d be roughly 20 million job vacancies, but clearly there isn’t. These are the least of all times to trust ANY financial institution with the handling of one’s finances and/or investments, financial institutions that the taxpayers bailed out, only to have these money grubby parasites foreclose on millions of taxpayer mortgages, as though possessing no sense whatsoever of good conscience…
     
  13. Jul 21, 2011 #12
    Re: Call me crazy, but I just...

    When people think the worst of the market, it makes a bull run.
     
  14. Jul 21, 2011 #13

    dlgoff

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    Re: Call me crazy, but I just...

    I'm not too money savvy but this bothers me.
    gold_all_data_o_usd.png
     
  15. Jul 21, 2011 #14

    lisab

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    Re: Call me crazy, but I just...

    I'm not too savvy either, Don, but I smell a bubble.
     
  16. Jul 21, 2011 #15

    turbo

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    Re: Call me crazy, but I just...

    Almost every day, there is a full-page ad in the newspaper advertising that some "road-show" outfit (certainly not affiliated with the PBS show!) will be camped out in a local motel room and will pay "top prices" for your gold. During the 1979-80 gold blip, a picker that I know did the same thing. He dumped the gold at market price every single day, because he knew that it wasn't going to last, and he didn't want to be left holding a lot of gold when the crash came.
     
  17. Jul 21, 2011 #16
    Re: Call me crazy, but I just...

    If gold/ commodities drop, where does the money go? Bonds, stocks, and mutual funds.
     
  18. Jul 21, 2011 #17
    Re: Call me crazy, but I just...

    Nice platitude, but I don't know that it's useful here. There are *always* people that think the worst of the market. Sometimes, those people are right, sometimes those people are wrong. The market cares little of what people on the internet think about it.
     
  19. Jul 21, 2011 #18

    turbo

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    Re: Call me crazy, but I just...

    Gold prices are quite volatile, and it is not a good idea to "invest" in gold. If for some reason you have a lot of gold around, now would be a wonderful time to cash out.
     
  20. Jul 21, 2011 #19
    Re: Call me crazy, but I just...

    True, but when people on the internet think the market is going to do something, it sometimes means that all the bad/ good news has been priced in already.

    Once you get homeless men telling you to invest, its time to get out, and vise versa.

    @turbo-1: I never said to invest in gold. I agree it is a stupid investment (unless you bought it at the right time, obviously). What I am saying is that if money leaves commodities where will that money go? It most certainly wont stay as cash...
     
  21. Jul 21, 2011 #20
    Re: Call me crazy, but I just...

    Are you comparing people on the internet, a set which basically includes everybody, to homeless people? It's as if you're saying "By the time it reaches the internet, it's gone as far as it can, that's the saturation point." That's the opposite of reality. The internet is usually the first stop, right after a person's brain. As soon as a person thinks it, it goes up on their blog, or a forum post.
     
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