401k

[urge]

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I've been thinking for a while, the reason the stock market had a bull run in the 80s and 90s was because they did away with private pensions and people were forced to put their retirement money in the stock market. All those boomers were buying back then, making prices go up and up. But now they are retiring, so they are selling. There is less and less young working people now than ever before which makes me think the market is never going to have the same gains as it did. There just isn't that much money being dumped into stocks. Thus, I'm considering stopping all contributions to my 401k. What say you?

Discuss.

 

[btbam]

Or the fact that quants/hedge funds pretty much control market dynamics now...

 

[urge]

Or the fact that quants/hedge funds pretty much control market dynamics now...

They just shift money left and right, up and down. I'm more interested in who is going to put new money into the market?

 

[climbingak]

I used to think tax free bonds were so conservative but I started doing them anyway. Now, making 5-6% gains on my money tax free seems pretty darn good compared to the recent trends in the stocks. I am tempted to buy buy buy stocks since I am young(er) and might as well get it while its on sale, but those steady gains of tax free bonds are starting to sound better.

 

[Jay K]

I might just sit on my money and say to hell with inflation... 2% per year is maybe looking better than losing 2/3 of it all right before I decide to retire.

 

[usnavdoc]

Depends if who you work for matches at all. If they do put in just enough to get matching. I changed that around and am using the residual to make a larger principle house payment each month. Better to be out of debt..even "good" debt

 

[IlDestriero]

I've been thinking for a while, the reason the stock market had a bull run in the 80s and 90s was because they did away with private pensions and people were forced to put their retirement money in the stock market. All those boomers were buying back then, making prices go up and up. But now they are retiring, so they are selling. There is less and less young working people now than ever before which makes me think the market is never going to have the same gains as it did. There just isn't that much money being dumped into stocks. Thus, I'm considering stopping all contributions to my 401k. What say you?

Discuss.

Why stop contributing? You need to max out your tax deferred and/or tax free investments. Just move it out of stocks into some low risk lower reward bond funds. They're always available. I got spooked a few years ago, and when everyone clocked a 40% loss, I had a 4% gain. When everyone said we were aproaching the bottom, I went all in and rode the wave. It's time for a repeat. I think there are limits on how often you can trade around. Find out what they are with your plans before you start playing. I'm not financially smart at all, but there are ways that us rubes can play the crazy markets with minimal downsides and risk.

 

[deleted185747]

the USD has deflated 7% in the past 12 months. Do something other than sit on dollars...