I'm curious as to what our forum members have done with their 401K and other savings or stocks.

At my age I took a loss to re-allocate my assets rather than to wait it out, and yes I may have locked in some losses to do it. I'm still into stocks but went from a 70% stock 30% cash and bond allocation to a 70% cash and bond and 30% stock allocation. I'm taking a more conservative. approach.

I waited until I could recoup the amount I gave to an investment firm before I bailed out so I'm out the gain but preserved the original amount. If the market recovers, which it looks like it will this morning, I will still have a position in stocks, just not as much as I did.

None of us knows what the future will bring, but I wondered what everyone else did and why. I know there is, and should be a distinct difference in investment philosophy depending on your age. The experts say you should subtract your age from 100 and use that number for your stock allocation percentage. 50 years old, subtract from 100 = 50. 50% stock 50% cash and bonds.

I'll bet most will stay right where they are and wait and hope that it will recover over time.

 

Grabbed my ankles.

Then I called AIG/Valic and found that my "Guided Portfolio" had been steered away from properties and lending 6 weeks before.

Apparently, the "Guiders" had some inkling.

It hurt, but not like some poor folks.

 

I am pretty well spread out in funds. I've taken the same hit as all but I have faith (although nervously) that it will come back. I'm 53 and wanted to quit at 59 but if I still like what I've been doing for the last 22 years, I'll go further and that will up my chance of total recovery.

I have also tried to buy basic stocks at a low point in the last few days. I mean, you can't panic and the ones that sell out now will be very sorry in the next few years (that is unless you need it now).

I'm just not going to panic. Warren Buffet is going to make even more cause he is showing a steady hand and head.

My .02 now down a smidge.

 

Pulled completely out, took a big loss against my brokers recommendations and now have the cash in Money Market. I'm not sure what I'm going to do. It's interesting that the last big drop in 2001 it took almost ten years to get back. If I was young it would be no big deal but I don't have the fresh money to throw into the ring to offset the old. Sad story, but I am sleeping a lot better now.

 

I wish I had pulled out at the beginning of the year like I wanted to. But, I took my broker's advice and stayed in. At this point pulling out would be the worse thing to do. I'm just staying the course and may rebalance to sell some higher stocks and buy some lower stocks. There are some stocks that are low, i.e. American Express, that make no sense.

 

You guys' have money?
When I turned 50 I was like, I have no money saved up!
Started a 401k then which is now down. Will hang in for the long haul.

Thank goodness for Army retirement pay! 26+ years service.

 

Correction, "had money"

 

I am not touching mine, I just increased the amount I am investing since buying low/selling high is the formula to use. I am able to purchase a lot more stock for the money, a few years down the road when it is going back up my 401k will be looking good.

 

I hear ya Blackberry. This isn't over yet and you still have some left. Maybe at some time you can jump back in on a balanced fund that mixes stocks and bonds. I have a health care REIT that pays a good return maybe look in to that in the future. And your so right if you were young it would make a difference.

Sleep Well Blackberry,

Chuck65 (your other black roadster driving school bus driver)

 

My KEOGH is making me want to cry. I have mutual funds. A bond fund, value fund, blue chip fund, international fund and small cap fund. All equally down. My tax-free investments have held their value. My mad money account is 90% cash right now. I'm not convinced the plunge is over, but I think its almost over. So I think its time to start buying carefully. Perhaps Berkshire Hathaway would be a good stock. I also am looking into health care stocks.

Les

 

My 401k is diversified to the point where this didn't kill me. Still down like 20%, but it could have been WAAAY worse. Plus I'm a good 20+ years from retirement, so whatever...plenty of time to rebound.

The funny thing is that I took a decent sum (about 30%) from my 401k to add to my downpayment on my first house about a year and a half ago. I was bummed about the penalty and taxes I had to pay...at the time anyway. Now it looks like a genius move. The money I took out would have been diminished by the aforementioned 20%, while my house was purchased for $23k under asking price, and has since appreciated (lucky that this area hasn't been hit very hard by the housing mess).

The economy is cyclical. Unless someone is very close to retiring there is plenty of time to make up the losses.

 

The 401's are all in mutuals & while each & every one has taken a hit I'm going to remain optimistic. I'm 54 & have a decade or so before I retire so I'll remain steadfast though I'm thinking, in another 5 or 6 years I'll start moving things to 'safer' paper. The stocks I own are all in utilities; steady, never have lost a stinkin' penny over the past 15 years or so, have split twice - no complaints.
As far as moving anything around or cashing out I feel that would be a silly move. After another year or 2 perhaps I'll rethink things but for now freaking out would be the worst thing to do.

 

After yesterday looks like your right we'll see what the next few weeks brings. I did move some around but still left my stock exposure at 30%. I think your doing the right thing at your age or maybe any age who knows. I get a little worried as I'm 65. It makes you more conservative. Fortunately we have our pensions but in these times it's possible that the amount of the pension could be reduced because they're somewhat into stocks also.

 

I took all the money out of my 401K and opened up a 201K. It seemed like the right thing to do with only half my money left.

 

Yeah, me too. Moved to a 50/50 split the first of the year. That move looks genius now. Even though it was bad it could always be worse.

I'm 60 and it would be nice to make a little money. It took 6 years to recover from the internet melt down. Hope this recovery is quicker. If it does then perhaps I can retire before I fall off the other end.

 

I closed our 401 several months ago and have been putting the money into physical gold and silver. I don't believe the DOW is going to recover anytime soon. Maybe go up a bit, but I believe it's going to drop into the 7000's. I also believe gold with be in the 1200-1300 range by year end or the first quarter of '09. Silver should also pick up into the mid to upper 20's. In either case, if the fiat of this country continues to be printed at the rate they are today, it could send us into a hyperinflation at which time about the only thing that would be worth anything would be gold and silver, along with guns and lots of bullets. If there is a run on the banks, where everyone panics about having there money in the bank and the banks suddenly not having any since they don't have anywhere near enough to cover deposits, the economy could collapse almost over night. I'm planning on keeping only enough in the bank to pay monthly bills.
Gold has been the only currency to survive for over 5000 years. Any Goldbugs here? Anyone looked at some of the metal sites to try and buy gold, silver, platinum, or roddium in the past week? The answer is almost nothing to buy. Look at ampex.com, or kitco.com, or bulliondirect.
Silver is about 11 an ounce right now. Try to find a 1 ounce ASE, American Silver Eagle, for less than $18-$19. A roll of 20 should be about $220 based on the spot price, but in reality they are selling for $400 a roll. AGE's are the same. A 1 ounce AGE should be about $850. Good luck!!

Remember, If you don't hold it, you don't own it! Paper isn't owning it.

This is only my opinion, please do your own research.

 

Wow Toy, that's pretty negative. Although I think we're in for some rough times, and I see the the inflation rate going up too, I think you're the extreme. I wouldn't want to see you get hurt so you have to keep a close eye on the situation so that you could move that money in gold back into other investments. When things break the money moves back out of gold pretty fast too.

You know that we all see the economy and our place in it just like a Rorschach blot, some see a rosey senario some see doom. Both sides in my opnion aren't realistic. It's somewhere in between. I don't see the market going up much and I think we'll be in a recession for quite some time. citizens in this country are in debt up to their ears and the country is in debt even worse. It will take years to balance it out and even then if we have the will.

One thing I do know that all of the solutions we hear from both presidential candidates involve either spending more or cutting our revenue (taxes) and that just doesn't add up to me. If I'm in debt, I don't get out of it by spending more or cutting back on my hours at work. Ronald Regan cut taxes and cut spending and balanced the budget. Bill Clinton cut spending and raised taxes and we had a surplus. W cut taxes even more and increased spending and look what a mess we have now. He listened to Cheney who said deficits don't matter.

 

I haven't touched mine. I fortunately have the luxury some of you don't. I am only 23. However, since I am single and make a decent living I have maxed out my 401k per year. I am running right now about 80% stocks and 20% bonds. My stocks are mostly aggresive european but then the investments do tail off to more mild and less risky stocks and then bonds...I'm not touching mine. I'm going to leave it where it is for now, and reasses the situation at 30. Then 40.

Luckily my mother has spent teh last 25 years doing retirement planning, so I don't have to pay anyone to get the good info.

Good luck to everyone who has taken a hit in the past months. Rebound is coming.

 

You brought up one of the most important issues regarding your future financial well being. That is you will not have to subsidize your mother in her retirement. Too many today are finding themselves burdened with supporting parents or their own kids move back in. They are called the "sandwich" generation. And your right rebound is coming we just don't know when. If we did we'd all be rich.

 

I have 60% in Treasury Securities, 20% in bonds, and 10% each in stock, small cap and international. I have left it all where it is but have redirected all future investments into the treas securities. If, and when, the stocks come back up to cover the loss, I will bail out of them in favor of the securities as well.

I'm getting much closer to retirement and less able to take the risk.