Are you pulling out of your 401k due to the stock market problems?
Answers: Be careful. 80 million Americans lost 50% to 80% of their life savings in the 2000-2002. When you lose 50%, you need to gain back 100% to get back to where you were. When you lose 80%, you need returns of 5X to get back to where you were. Many people will never, ever get back what they lost.
8 years later from the peak in 2000, the S&P500 is -5%, and the NASDAQ is -55%, and 3/4 of all mutual funds underperform them. Some will say and rightly so that was irrational exuberence and the mkt never should've gone that high, that quick to begin with, regardless, the point is we should learn from that.
I've seen 5 "experts" that have either called this right or happened to be lucky. 1 fundamentalist is saying we are only 1/3 of the way through this market decline. 3 technicians are saying we have a long way to go at best. While IBD doesn't say how long, it let's the market tell us when to get back in, and it isn't yet.
In my opinion, when the stock market is tanking, this is the time when you should add to your 401(K). I'd prefer to BUY when the price is LOW. Why cash in your 401(K) when it is being temporarily devalued?
Hope that helps!
The appropriate time to pull out during a bear market is around a temporary "peak" area on the stock chart. This is also the appropriate time to put that money into a "bear market fund," which will make money during the recession.
During a bear market, prices fluctuate between several temporary "peaks" and temporary "bottoms." However, each one tends to get lower and lower.
The best way to see this is by looking at the last recession: http://www.financialsense.com/editorials...
See how there are several major peaks and several bottoms, each one lower than the other.
Look for a similar type of thing in the stock market this year, next year, and possibly even longer, and try to time your exit (and your entry into a bear fund.)
Just being a LITTLE proactive can really improve your results.
I strongly disagree with those who recommend "waiting for the market to bounce back." History provides many examples where this is a BAD strategy. For example, the American stock market took 25 years to get back to 1929 levels after the famous crash.
New Zealand took seven years to break even after October 1987.
My dad, who never got into finance, tells a funny story. His first stock purchase is the one that turned him off. He bought some stock in the company he worked out, promptly saw the share price go down, and then had to wait 20 years for it to come back up enough to break even.
Waiting those amounts of time is ridiculous. You might as well not invest at all.
The "hold and wait" strategy is for lazy people who don't want to make the effort to learn a little about the markets and be a little active in their investments.
http://commonsensetrading.G00GLEpages.co...
no...you should be happy as your buying more shares. The accounts will go up...The market will always go up and down.you just have to get used to that fact. If you don't change your allocations then you'll end up ok in the long run...start chasing the market (ie going in and out based on hunches) then you're going to screw yourself.
And the great depression has proven to be the only period in our nations history that it took that long to get back to even. We've never had an extended period of losses like we had then...returns of 19,35, and 49% annual losses. To compare...after 9/11 we had losses of 16%, 16%, and 3%.hardly comparable and I don't think this recession can remotely compare either. Don't chase the market.
Yup. You should buy when it's low, true - the other side is sell when it's high (ie, before it goes lower). I think I should still protect the gains I've already made - why let my existing investments tank? Existing money, I'm moving out temporarily to protect the gains I have already earned. New contributions are still going in - buying shares at the lower price. Once it's stabilized, I'll buy back in.
Rule #1 - Don't Lose Money!!
Want Free Software that Provides Buy Sell Signals for Intraday Trading?
Hi, My name is avadhoot. I am a intraday trader. I trade at NSE. Could u recommend me any software which would tender me buy sell signals for intraday. Please reply. If poss correspondence me at kanade_avadhoot(a)yahoo.co.inAnswers: My counsel would be to give up. Statistically, 90% of sunshine traders lose money over a one year period. Are you going to be the lucky 1 surrounded by 10? Don't try to trade intraday. Lets put it this way. If I be smart enough to know when to buy and get rid of intraday, and I were smart plenty to be able to create a computer program... why would I bother selling or marketing the program? Wouldn't I a short time ago keep the program to myself and verbs to make money trading intraday? In other words, intensely very totally few people can trade intraday, and if/when they are successful, they don't be in motion around sharing it with everyone because later their strategy would get crowded out and not work anymore.
Good luck!
My wife and I be paid $160K per year. What is the best path invest, clear taxes, and or how do we ensure rates return
My wife and I make $160K per year. We inevitability find the best way to contribute the maximum amount to IRA's and still come out next to a refund annual. We are looking for concept and or formulas we can use to plan our retirements, daily living, etc.Any thinking on what percentages to put contained by IRA, taxes, etc would be helpful. Thanks.
Answers: Being base in the UK, I can't comment on your excise arrangements, unfortunately.
However, the best opening to invest is to make sure you diversify your investments - don't put adjectives your money in one place. You should enjoy 25%-75% of your money in a screening of savings accounts, hoard certificates, bonds, etc. 25%-75% should be within shares, unit trusts, manage funds, etc. That way a hulking proportion of your money is safe, but you also benefit from the well brought-up returns of the stock market. And if the stock open market crashes, it's not the end of the world.
If I be you, I would consider Zopa as an interesting and fun way of further diversifying your investments. It's smaller number risky than shares, and arguably slightly more risky than a savings tale, but Zopa give you the leeway of managing the risk very effectively, so I don't believe that's anything to verbs about. They are an online lend and borrowing exchange that allows you to lend money directly to individuals, cutting out the bank with their affinity for taking fees. You grasp to choose the rates at which you lend, and you get to maintain the interest.
They've recently launch in the US after have had nouns in the UK. The following association should automatically redirect you to the US site, and hopefully there'll be a special proposition as an incentive to attract new member.
http://www.zopa.com/member/The%20Hulk
In the UK this offer is a free lb30 when you lend lb500. Hopefully the proposition in the US will be something similar.
Hope this help!
I can only answer to your investing quiz. I suggest you try not to be too passive in the region of it, ie. don't just stick your money surrounded by a 401K without doing a bit homework.
Right now is a worthy time to put your money into a "bear flea market fund" because we are in a "take on market" or "recession" that could last for several years.
A carry fund is not the same as a majority mutual fund, so be careful. A run of the mill mutual fund will NOT make money over the subsequent few years.
Determining which types of funds to invest in and when, is not that difficult.
I've answered this give somebody the third degree several times before, including plentiful Best Answers, so I refer you to a website I put up with these answers:
http://commonsensetrading.G00GLEpages.co...
I'd suggest you hold on to tax refund to a minimum - otherwise you're giving out 0% interest loans. Better: Claim a little smaller quantity than necessary and put the stash into something earning interest. In April, verbs the money out to pay taxes (while keeping the interest to yourself).
You own a salary, you can do alot. If you own the time to tackle it yourself, start beside a book and then a course (like http://www.investools.com/success/). If you don't hold time/energy to manage it on your own, I'd recommend getting some support from someone like Ameriprise (American Express financial advisors).
You do not want to use Ameriprise for financial planning as they don't provide financial planning since they're insurance salesman who use energy insurance as solve all for financial planning. See ameriprisesuck.com