Aznfarmerboi

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Anybody lost a lot of money in their 401k? In a week, I lost 10 percent.

I am happy I took out a 50k loan a few months ago to invest in stocks but didn't have a chance to use it.

I brought stocks on Friday and got killed on Monday. I am pretty much even now after today and sold most of it to get ready for the next dip.

I am thinking about increasing my 401k contribution to more than employee match but want to save some more to buy rental properties or open a business. Maybe get married....
 

Swishers

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Apr 18, 2011
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I'm at -2.47% ytd. That's not so bad compared to S&P 500 (-6.55%) and Nasdaq (-1.40%).
 

farmadiazepine

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Not really worried about it at all. I'm 28 and have years to go until retirement. The stock market goes up, then it goes down, and it repeats over and over again with semi-long stretches in between. Same for anyone nearing retirement, it will go up again, just give it time.
 

npage148

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-9%. My wife likes to mock my panic seeing how I have 20+ years for it to recover
 

BMBiology

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I am still up year to date although not by much. I remember in 2011, stocks were at a discount because of Europe and our debt crisis. I went all in and did really well.

The crisis in China is like a slow train wreck. I wish it would crash already so we can get this over with. Same thing with the fed increasing interest rate. Do it already. I think if we have a really good employment report this Friday people are going to forget about China. However if it is bad then expect people to panic.

The problem I have is stocks are no longer cheap like they were in 2011. We had an amazing bull run from 2009 til now. We can't keep on going up especially with China slowing down and its affect on Europe and emerging market.
 

wagrxm2000

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I am still up year to date although not by much. I remember in 2011, stocks were at a discount because of Europe and our debt crisis. I went all in and did really well.

The crisis in China is like a slow train wreck. I wish it would crash already so we can get this over with. Same thing with the fed increasing interest rate. Do it already. I think if we have a really good employment report this Friday people are going to forget about China. However if it is bad then expect people to panic.

The problem I have is stocks are no longer cheap like they were in 2011. We had an amazing bull run from 2009 til now. We can't keep on going up especially with China slowing down and its affect on Europe and emerging market.
I see it the opposite, if we have really good employment people will.freak and sell thinking the rate hike is definitely happening.

I for one do not think we will have a rate hike any time soon and instead will get more qe
 

sosoo

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i switch to bond 2 months ago, so the stock decline has no effect on my 401k. lucky! the stock market is so volatile i have to keep bonds for a few more months and see what happens. the past 2 months with Stable Value Fund i'm $48 positive. with US Bond index i'm $189 positive..... the sad part was i borrowed a portion of 401k to play stocks and have lost 1 paycheck this past week. soonest i sold at low point, soonest it rebound. if i were a girl i'd say i'm f*cked.
 

BMBiology

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^ I don't get this. Why do people borrow money from their 401 k and use that money to buy stocks? You are paying yourself 4% interest? Let's say your stock goes up, you would have to pay capital gain tax on it. Regular income tax if you hold it for less than a year. It sounds too complicated. Just hold your money in your 401 k and don't touch it.
 

BidingMyTime

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^ I don't get this. Why do people borrow money from their 401 k and use that money to buy stocks? You are paying yourself 4% interest? Let's say your stock goes up, you would have to pay capital gain tax on it. Regular income tax if you hold it for less than a year. It sounds too complicated. Just hold your money in your 401 k and don't touch it.
This don't most 401-K plans have different options anyway, where one can put their money into risky, high potential funds or stable, low-potential funds? Smart thing is to move money around in the 401-K plan if one wants to, then no worry about capital gain tax (or worse if the person loses their investment in the stock market, and can't pay back their 401-K loan........not to mention, aren't 401-K loans legally supposed to be only for unforeseeable life changes, not for frivolous stuff like playing the stock market?)
 

fewaopi

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I wouldn't invest money that's meant for buying a home or other large purchase period. It's generally accepted that money for a house, wedding, w/e it is, you don't put it in equities or bonds, just savings account (money market) cause you'll need that money and you don't want to expose it to risk (which you do whenever you invest).

You say increasing your401K contribution, you mean you haven't maxed out? You should always max out, always always always! Then use the leftover money to save. Don't skimp on contributions to save money for something. Save, spend less then if that's the case. Employee match is a nice bonus but it's more tax savings and reducing your tax bill.

FWIW, I'm -2.3% but my 401k isn't very big so like $150 so far. I guess when you contribute weekly, you buy on peaks and dips so pretty flat overall and 98% of 401ks in the country I'd presume. Everyone gets their share of market returns and losses. People won't talk about losing money so you may feel like you're alone. But people love to boast when they win. People chalk up their wins and forget to post their losses, so it seems like they're always winning when really they aren't. It's human psychology so don't worry about it. Best is pick low fees. Fees are a major drag over decades on a portfolio.

Timing the market actually works and does make you money. Problem is you have to time it right which over the long run doesn't work and hence why timing is a bad strategy. What about all the people who speculated on oil back in January/Feb? Why so silent? Where's the bottom and how do you know exactly where it is? How do you call it? Why did some people call it already 8 months ago? I know we fell but did I land yet? ("Oh but wait, it's a long-term investment/hedge). Purchases for short-term become long-term hedges all of a sudden and that applies to all. Market timing long-term is proven not to work and exploits faults in human psychology. Index/mutual funds remove a lot of risk so you don't put too much money in one stock. Also even big companies fail. Remember AOL? Lucent? S&P top 10, and now? It also avoids getting tied up in emotional market swings which is entertaining to see. "Wahh it went down, why make no sense? (cause you don't have a clue genius), Yay! went up (i'm such a financial wizard, i see all the movements, powerplays, everything, cause I'm a genius), Why did I sell so early instead of later? (cause you don't have a clue genius), Why didn't I sell and cash out and hold before it dropped (cause you don't have a clue genius), etc etc. Purpose in life isn't to play stocks and long-term (w/taxes and trading fees included) it doesn't work.

The crisis in China is like a slow train wreck. I wish it would crash already so we can get this over with. Same thing with the fed increasing interest rate. Do it already. I think if we have a really good employment report this Friday people are going to forget about China. However if it is bad then expect people to panic.

The problem I have is stocks are no longer cheap like they were in 2011. We had an amazing bull run from 2009 til now. We can't keep on going up especially with China slowing down and its affect on Europe and emerging market.
To wagrxm2000's point, remember earlier this year? Seems forever doesn't it? Jobs report was great and stocks plummeted back in February? Reason? Good jobs report meant possible rate hike, sending stocks down. The valuation of stocks was more tied to QE/interest rate rather than jobs. So in a perverse sense, unemployment was good. It's impossible to predict and no sense trying, maybe up, maybe down. Doesn't matter.

I'm down 22% since January 1.
How the f**k is this possible? You mean 2% right? What moves did you make to be -22% in a 401k?
 

sosoo

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i cannot imagine myself working for cvs forever. i have to borrow loans from 401k to play in the stock market to see if someday i can make it on my own, and part ways with cvs... i came to this store 2 years ago, and already witness 5 ppl leaving. DM, sup, PIC, staffs. all the techs that i began with have been obliterated. this company is not for keeps. gambling in the stock market is my only opportunity.
 

BMBiology

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^ that is horrible plan. If anything, it would cause you to stay with CVS longer than you wanted. If you decide to leave CVS and you still have a loan balance, you need to pay it back immediately or you would have to pay the penalty and tax on the loan.

Is this a sign of the market overheating? Even Pharmacists are gambling!
 
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Aznfarmerboi

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^ I don't get this. Why do people borrow money from their 401 k and use that money to buy stocks? You are paying yourself 4% interest? Let's say your stock goes up, you would have to pay capital gain tax on it. Regular income tax if you hold it for less than a year. It sounds too complicated. Just hold your money in your 401 k and don't touch it.
Because I know I will be paying more taxes in the future than right now, don't trust the government, might not live to 65, and believe my capital is better put into a business, real estate investment properties, or individual stocks that I am familiar and comfortable investing in risk wise. If my 401k stock lets me invest 100k in oil right now, I would not have taken a loan out on it. At this point, stocks like XOM are sure things for me.

If I lose money, I don't care because I know I wont starve in the future. Go big or go home.

I only put in money into my 401k because of employers match.
 

pharmerjohn

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-5.41 YTD. Allocating more to bonds for now until the volitility settles. Regardless, it's got 40 years to recover.
 
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MatCauthon

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-5.41 YTD. Allocating more to bonds for now until the volitility settles. Regardless, it's got 40 years to recover.
Some would say to be careful by assuming that the status quo will prevail in the next 40 years. Someone mentioned thee book 'The Black Swan' and I think that is a book everyone should read. Assuming that 'millionaire next door' strategy will happen is great, but definitely look at the variables that to happen for that strategy to repeat itself. I still think there is a lot of money to be made, but we might have to venture out of our normal investing patterns to find this money.
 
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ACE_Dx

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Aug 3, 2015
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Speaking of 401k, I have a question as a new grad. I recently obtained a clinical pharmacist position at a local hospital and they are offering a 5% match. Should I elect to go with a traditional or a roth 401k? I'm in my late 20's if that matters. Thanks!
 

radio frequency

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Speaking of 401k, I have a question as a new grad. I recently obtained a clinical pharmacist position at a local hospital and they are offering a 5% match. Should I elect to go with a traditional or a roth 401k? I'm in my late 20's if that matters. Thanks!
If you plan to work part time as a pharmacist when you'll start drawing from your 401k, I'd definitely pick the Roth. That income will make you pay higher taxes on a regular 401k in the future, whereas you'll have paid a portion of the taxes already with the Roth.
 

BMBiology

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Speaking of 401k, I have a question as a new grad. I recently obtained a clinical pharmacist position at a local hospital and they are offering a 5% match. Should I elect to go with a traditional or a roth 401k? I'm in my late 20's if that matters. Thanks!
Traditional 401 k if you expect to be at a higher tax bracket today than when you retired.
 

pharmerjohn

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Some would say to be careful by assuming that the status quo will prevail in the next 40 years. Someone mentioned thee book 'The Black Swan' and I think that is a book everyone should read. Assuming that 'millionaire next door' strategy will happen is great, but definitely look at the variables that to happen for that strategy to repeat itself. I still think there is a lot of money to be made, but we might have to venture out of our normal investing patterns to find this money.
True, nothing is for sure in life, and sh!t does happen. As with the investment game, past performance is no guarantee future results, so having the "Millionaire Next Door Strategy" is only a starting point. Discerning where to invest one's assets for maximum future returns is the rub.
 

Muse600

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who else is moving your portfolio 100% into stocks!!!

let the market tumble!!!
 

pezdispenser

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Mine has been on 'set and forget' mode for a while now:

50% S&P 500 Index
30% Russell Small Cap Completeness Index
20% International Stock Index
===
So yeah, it's 100% stock. I don't feel the need for bonds in the early stage while I'm still contributing and DCA ~$700 x 26 paychecks to max it out at $18k.

About -2% YTD, but still did pretty well over the past 7 years to build it up to $160k now. (I only put in just enough for the full match for the first 3 years while I was paying off student loans and saving up a house down payment.)

As for taking loans out on your 401k, I don't get it either. You should be saving 15% for your retirement anyway, which matches up nicely with the $18k limit. If you take it out and make other riskier and more aggressive investments, what's going to happen if they don't go well? No more retirement? I would only make riskier investments after the 401k is maxed out at 15%, and you should still have enough surplus in your budget to comfortably do so. If you don't, then it might be better to pay off debt and cut expenses.
 

trailerpark

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So for you guys only in stocks you wont even put into a 401k up to your company's match?
 

Ackj

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So for you guys only in stocks you wont even put into a 401k up to your company's match?
They mean their portfolio (401k, roth, and taxable) is allocated to 100% stocks, 0% bonds. You can set your 401k to have whatever allocation you'd like.
 

Muse600

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100% stocks errrrwhere!!!

I changed it in my Vanguard account!! but also 401k/roth 401k/roth IRA!!!
 

BMBiology

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100% stocks errrrwhere!!!

I changed it in my Vanguard account!! but also 401k/roth 401k/roth IRA!!!
Changing everything to 100% stock now is pretty risky.
 

Muse600

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Changing everything to 100% stock now is pretty risky.
I'm a risky kind of guy!

actually, so far that's just my Vanguard acct...the 401k/roth 401k I pretty much leave alone...roth IRA not funded yet for this year (need to do backdoor in one lump)
 

BanBidil

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I haven't lost a dime but probably missed out in the past year on gains anyway. I put conservative investments last year. So no way to tell what I really "lost".