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Where is the end of this madness?

September 30th, 2008 at 05:35 am

The bail out plan failed. Dow was down more than 700 points. Tokyo is down. Singapore is down. Korea is down. And Taiwan is down.

I checked my 401K. I used to have 6 figures in there. Now it's back to 5 figures Frown

I transfered some of my funds to more stables ones last week. I'm glad I did. Otherwise, the damage would have been larger.

I sure am grateful that I am not retiring any time soon. My DH's co-worker came back to work after his retirement because his retirement fund got hit really hard.

Actually, I'm not worried that much, though. Luckly, both DH and I have stable jobs, and I will receive some bonus this year. I will also keep contributing to my 401K, but I need to pay attention to my fund allocation.

4 Responses to “Where is the end of this madness?”

  1. Broken Arrow Says:
    1222776780

    Well, the bailout in the current incarnation failed on that particular day. However, that doesn't mean that there may not be a revised bailout in the works, or that the bailout can't be voted on later.

    Today is a Jewish holiday that Congress observes, so they are not meeting up today. I believe it will meet up again tomorrow, and talks at least will resume.

    I think the Dow drop emphasized the urgency of the matter, so hopefully something will get done soon.

    I think things are going to be fine, but I prefer not to assume that. "Hope for the best, but prepare for the worst." That's my Boy Scout motto.

  2. Single Guy Says:
    1222783937

    Your retirement funds must be about the same as mine, as I also went from 6 to 5 figures. Because of my max contributions I had been holding water so far this year, but not any more! Like you I have a long way to go to retirement so it shouldn't matter, but it makes you feel poorer.

    I think that those of us that hold on will be better for it in the long term - at least I keep telling myself that.

  3. Broken Arrow Says:
    1222785176

    Single Guy, yes, you will be better off in the long run.

    Forgive me, but people are not seeing the big picture here. Stock shares (and NAVs) are on sale in one of the biggest single day sale event in nearly two decades! And yet, people are running from it rather than buying into it.

    Also, when the market fluctuates, you still haven't lost a single share. Only the value of your shares have changed (paper loss/gain).

    The only thing time when it becomes "real" is when you sell. Then, be it gain or loss, the results are locked in. But for retirement, that's decades away. No need for a single day to change the fate your retirement... and possibly for the worse.

    My retirement fund took a substantial loss too. However, I didn't change a single thing with it. Why? Just paper loss. It fluctuates along with the market. Up and down, up and down... but still no change to the number of shares I own. If anything, I am not able to buy more shares for my money now than before.

  4. retire@50 Says:
    1222796042

    If you are in retirement or planning to retire soon you should have 3 to 5 years in cash to smooth over these rocky stock market times, so you are not forced to sell in a down market. Just ask yourself, do you think your stocks will be worth more in 3 years? If so, leave them alone. If not, you may not be suited for stock investing, not everyone can take the stress. But trying to time the market is a sure way to lose in the long run.

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