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  • 401k plans

    How many people are canceling their deductions?

    This seems the wrong time to do it. I think now is especially the time to continue the slow but steady investment. No big investments, to be sure, but canceling the payroll deductions seems wrong.

    Am I way off on this?
    Iím not racists, I have republican friends. Radio show host.
    - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
    - "A foolish consistency is the hobgoblin of little minds" - Emerson
    - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
    - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
    - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
    - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

  • #2
    Re: 401k plans

    If anything, I would increase the deductions for the time being. 401K is a looong term investment, and you have a much higher purchasing power in your portfolios right now. Just pray that the whole thing doesn't collapse. If it does, I never told you this.
    ~~ Veritas simplex oratio est ~~
    No matter how far a wizard goes, he will always come back for his hat. --T. Pratchett

    <---- You know you're getting old when you rely on your forum meta-data to remind you how old you are.

    Comment


    • #3
      Re: 401k plans

      Yeah, I wouldn't cancel any pay deductions at this point.

      For one thing, you are getting a tax benefit for contributing to the 401k. The other thing is that you get more for your money now, and all things point to long term gains if you stay with it (things inevitably will get better, it's just a question of how long you have to wait). Everyone is getting their butt kicked in stocks now, pulling out will just ensure that you lose more without the opportunity to buy low

      Comment


      • #4
        Re: 401k plans

        Buy high, sell low!

        That's my motto.
        A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

        "$250,000 a year won't get me to Central Park West."

        Comment


        • #5
          Re: 401k plans

          Originally posted by Rincewind View Post
          If anything, I would increase the deductions for the time being. 401K is a looong term investment, and you have a much higher purchasing power in your portfolios right now. Just pray that the whole thing doesn't collapse. If it does, I never told you this.
          That is what I was thinking. I think a steady monthly or bimonthly investment will get over the fact that nobody knows where the bottom to this is. It spreads the risk out over time.

          And if the whole thing collapses? Well, I don't think retirement will be my number one worry at that point.
          Iím not racists, I have republican friends. Radio show host.
          - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
          - "A foolish consistency is the hobgoblin of little minds" - Emerson
          - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
          - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
          - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
          - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

          Comment


          • #6
            Re: 401k plans

            Originally posted by El_Gringo_Grande View Post
            And if the whole thing collapses? Well, I don't think retirement will be my number one worry at that point.
            Exactly
            ~~ Veritas simplex oratio est ~~
            No matter how far a wizard goes, he will always come back for his hat. --T. Pratchett

            <---- You know you're getting old when you rely on your forum meta-data to remind you how old you are.

            Comment


            • #7
              Re: 401k plans

              Iím 15+ years from retirement and stocks are on sale big time. I have increased my deduction (20%) to cash-in while the getting is good. Iím diversified so unless the world economy ends outright I should reap some reward in the long view.

              FYI: After a while you grow accustomed to the smaller checks so just DO IT.

              Sarcoma
              Sarcoma.

              Comment


              • #8
                Re: 401k plans

                agreed, this is the year to max out your contributions
                ~~ Veritas simplex oratio est ~~
                No matter how far a wizard goes, he will always come back for his hat. --T. Pratchett

                <---- You know you're getting old when you rely on your forum meta-data to remind you how old you are.

                Comment


                • #9
                  Re: 401k plans

                  Oh yeah! I can't believe the morons who are even pulling their money out of their savings accounts to stuff their mattresses. I for one will be UPPING my contributions and investing. Stocks are cheap cheap cheap right now. We will be the kings of the money world when things bounce back. What people tend to forget is that many people actually made their fortunes from investing during the Great Depression. I intend to have the same result.
                  "Common sense is not so common." -Voltaire

                  Comment


                  • #10
                    Re: 401k plans

                    Yep, I just maxed my contributions out last week. Hopefully some good will come out of it...



                    TacticalGamer TX LAN/BBQ Veteran

                    Comment


                    • #11
                      Re: 401k plans

                      Good to hear there are some out there with Common sense.. (although I didn't think the Sandbox would be the place to find it!! ;-) )

                      All you hear about is the negative side of things... Making Lemonade out of Lemons... Nice work TG'ers!..
                      |TG|ARMA Pathfinder
                      ..now where did I put my keys?

                      Comment


                      • #12
                        Re: 401k plans

                        So.. what are some good stocks to invest in right now?

                        Comment


                        • #13
                          Re: 401k plans

                          This thread may be evidence that we are a good distance from the bottom.
                          A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

                          "$250,000 a year won't get me to Central Park West."

                          Comment


                          • #14
                            Re: 401k plans

                            Originally posted by xTYBALTx View Post
                            This thread may be evidence that we are a good distance from the bottom.
                            I laughed hysterically for about 4 minutes until my assistant came in to ask me if anything was wrong when I read this mainly due to the truth in your comment, good one!

                            My only advice would be to check out what exposure the company who handles your 401k's investments has to the residential, commercial and credit card CDO market. It's not that the stocks that you think you are purchasing will be useless (although some will be, but certainly not all), but that the company handling these large funds will simply disappear and your investments will be handed out to the secured bondholders, which I assure you none of you are. (secured bondholders) A pension fund or private equity firm or basically any investment company with large exposure to the afore mentioned markets is a situation is a risk, and investing in that risk and expecting a reward down the road sounds strangely similar to the institutions who are now expecting a bailout. ( you are ignoring the risk just like they did) If of course they have little to no exposure to those markets then by all means up your contributions and keep your money there.

                            Comment


                            • #15
                              Re: 401k plans

                              Originally posted by Morganan View Post
                              I laughed hysterically for about 4 minutes until my assistant came in to ask me if anything was wrong when I read this mainly due to the truth in your comment, good one!

                              My only advice would be to check out what exposure the company who handles your 401k's investments has to the residential, commercial and credit card CDO market. It's not that the stocks that you think you are purchasing will be useless (although some will be, but certainly not all), but that the company handling these large funds will simply disappear and your investments will be handed out to the secured bondholders, which I assure you none of you are. (secured bondholders) A pension fund or private equity firm or basically any investment company with large exposure to the afore mentioned markets is a situation is a risk, and investing in that risk and expecting a reward down the road sounds strangely similar to the institutions who are now expecting a bailout. ( you are ignoring the risk just like they did) If of course they have little to no exposure to those markets then by all means up your contributions and keep your money there.

                              I have a Roth w Fidelity and 401k w ING. How do I find out what their exposure is to the CDO markets?

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