I lost 90%. Multiple executives - upper level ones - from the Petroleum industry have gone back to work so they can pay their mortgages, because their social security benefit doesn't pay enough and they lost nearly everything. Sooooooo. Do what you will. Ugrev, Melbo, Visutrac, myself, Bear, and others will buy our PMs and wait the storm out.
Most important thing to remember is that a 401(k) is not an investment. It is the vehicle to the investment's engine. What it allows is pretax dollars being used that will be taxed later. Same with an IRA, while a Roth IRA offers post-tax investments with taxes deffered on the gains. What you invest in within your 401(k) depends on you. Aggressive, conservative, income, etc. As for losing money, you didn't lose anything unless you pulled the money out. It is a paper loss. Did you know there is no 15 year period that has ever been negative, ever? If at any time in your past you have put money in a mutual fund that closely follows the market and left it for 15 years you would have had more than you put in. As for 2008, yep, everything took a huge hit. But if you continued investing regularly you made a huge gain off of it. Yes, things were down about 50% in 2008, but then they gained 50% in 2009 and it looks like around 20% in 2010. So money already in has nearly recovered while new money in 2008 has made a killing. It's all about time in the market, not timing the market. But most importantly: diversify!
I have had my 401k for a long time. Over all mine has done well as I have it spread out from conservative, to medium, to aggressive investments. It has balanced out pretty well. I think last quarter I made 12.5% return on them. I have never pulled money out but did pull some out a few months ago in the form of a loan to myself. It is like borrowing money from myself. I have only done this once over the years. I purchased some extra property beside my farm...and am very glad I did. The peace of mind I get from walking outside and knowing the large field beside my farm is mine is priceless. I am not much on close neighbors, and in this economy I feel land is never a bad purchase. Otherwise, I have just let her ride so far. I just hope I don't wake up to see it wiped out one day soon!
Land has ALWAYS been a good investment, IF you plan on staying on it for a very long time. Simply because, GOD isn't making any more of it, and folks that want to own a chunk, will pay the GOING price for it, and that has ALWAYS appreciated, over time. The trick to owning Land, is being able to KEEP It, and living on it, gives you 9/10ths, of that trick, covered. I wonder is the local Native Americans, that sold New York City, to the Dutch, consider that a "Good" long term Investment.......
ask the Jews who owned land in Germany in 1939 if they agree it was a good investment. And I'm not being facetious here-- our government is certainly not there now, but is certainly going that direction. I prefer the view that nobody ever owns land, we can only rent it.
Very timely post. Just what I needed to know about as I sit here looking at a 401 K form the company gave me that I'm going to start working for. I will be working for a realty service group that services Chase bank. After one month, I can contribute up to 16,500, also being over 50 yrs old I can add 5,000 to that for a total 0f 22,000. They will match it with 50% up to 6%. Vesting starts on date of hire. 1st yr 33%, 2nd 66%, and 3rd 100% I need some retirement, but I need that extra cash to finish that fertile ground by the river. I may try 1% to start off with. Can you change your mind later?
Almost always you can, but as ghrit said, check with your specific plan. I usually tell my clients to put as much in as they think they can at first and change it later. The reason being that when someone can afford more they usually procrastinate but if they have to decrease the amount they will adjust it right away. Whatever amount you chose please remember to invest wisely for your age and when you plan to start withdrawing.
I found out today I can control where my money is invested. Right now it would be oil, commodities, and guns and related products, Obama is the best gun salesman in history. It is also a way of starving the beast, especially this administration who would just use the employers and employees taxes to diminish the American lifestyle. I'll start with 7%. After I build up an emergency nest egg, food and water, and finish my BOL, more will find it's way into it. Maybe 10%. Then after my lady retires, more. This government would be wise NOT to go after guns, PM's, tomatoes, retirements, cars and beer.
