401k is a sham
such limited options
was watching testimony today and the good news is as this shit evolves 401k will be reexamined to at least give the employee a much wider range of options so they can better diversify their holdings
like my mum is trapped in one now and she's even scared to just be holding it all in a MM fund right now.....as MM funds are even starting to come into question as the corporate bonds backing them are having issues
they trap you in times such as these
government when they get involved with mandated savings programs will always mess things up
people for too long been sold the garbage of 5-7% returns on average nonsense those days are over
time to go back to the old days when a portfolio was truly diversified with cash, bonds, treasuries, equities, commodities, and gold (in case shit hits the fan)
such limited options
was watching testimony today and the good news is as this shit evolves 401k will be reexamined to at least give the employee a much wider range of options so they can better diversify their holdings
like my mum is trapped in one now and she's even scared to just be holding it all in a MM fund right now.....as MM funds are even starting to come into question as the corporate bonds backing them are having issues
they trap you in times such as these
government when they get involved with mandated savings programs will always mess things up
people for too long been sold the garbage of 5-7% returns on average nonsense those days are over
time to go back to the old days when a portfolio was truly diversified with cash, bonds, treasuries, equities, commodities, and gold (in case shit hits the fan)
yeah every 401k different and have different options
MM fund or government bond fund really only safe options in 401k right now
and even MM funds are questionable at this point although i think the government is insuring all MM funds that were present in the account up to a recently set date
new influxes to MMs will not be protected....they had to do this because if you insure MMs....than uninsured deposits in commerical banks would flood the MM fund market
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as for dip buying zit good luck...and be careful.....
we will have a massive bounce at some point and volatility only bound to pick up
but we are heading lower before this bear is over that much is pretty damn clear.....
guessing 2-3 years we bottom out.....bear started in oct 2007.....so 1 year into it now
bear markets almost never if ever.....end in 1 year time
and this ain't no 1987 type event either....
Definitely not time to strop contributing. Everything is very cheap now. If you want to be clever, you may want to put the money in your 401k in something like cash or gold for a while until the market stabilizes to protect a large balance. But its tough to guess when we have hit the bottom and when we will bounce back.
401k having the option to invest in gold :lolBIG:
yeah right
maybe if you work for a gold mining company other than that hell no :drink:
only 2 good options right now for 401k
are MM funds (which may be at risk due to corporate bonds going bust like a few MMs broke the buck when lehman went under), or government bond funds (and i'm not really sure how much more treasuries can rally as even our government has issues but either way it pays a decent yield of like 4%)
there is no "cash" option i don't believe....where you money just basically sits there risk free and FDIC protected like say in a bank......
y definitely not worth taking the penalty
honestly the time to make a clear obvious decision to yank from equities has already passed....
now its just a damn tough call of when to dump.....
the markets are getting very volatile and there will be a massive spike up at some point......
if we get a spike here soon run like hell that much i know
dow will likely hit 8k in the next year or two (at this rate could hit that in the next few weeks...as october is crash month historically)....and 8k very likely the high end of things
some doom gloomers saying 4k....i really don't have a number
best guess for a bottom is more along the lines of historical time frames as far as how long bears last....late 2009 i may start thinking its time to start jumping back in......at that point i have no clue what markets are gonna be at......
plus as long as volatility remains a great sign in a bear market....and the bigger the volatility gets (which is now happening the last few weeks) the more gloomy things are likely to get....and the bigger chance of making a lower number at the ultimate bottom on the markets long term......
also the time frame is up in the air and based on government intervention and such
bottom line prices need to fall no policy can change that fact
its just a matter if government can add more debt and drag it out longer......or we get down there in a swift sharp manner like in the 30s
honestly the time to make a clear obvious decision to yank from equities has already passed....
now its just a damn tough call of when to dump.....
the markets are getting very volatile and there will be a massive spike up at some point......
if we get a spike here soon run like hell that much i know
dow will likely hit 8k in the next year or two (at this rate could hit that in the next few weeks...as october is crash month historically)....and 8k very likely the high end of things
some doom gloomers saying 4k....i really don't have a number
best guess for a bottom is more along the lines of historical time frames as far as how long bears last....late 2009 i may start thinking its time to start jumping back in......at that point i have no clue what markets are gonna be at......
plus as long as volatility remains a great sign in a bear market....and the bigger the volatility gets (which is now happening the last few weeks) the more gloomy things are likely to get....and the bigger chance of making a lower number at the ultimate bottom on the markets long term......
also the time frame is up in the air and based on government intervention and such
bottom line prices need to fall no policy can change that fact
its just a matter if government can add more debt and drag it out longer......or we get down there in a swift sharp manner like in the 30s
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