My Retirement account is down 25%, should I stop putting $ in?

[bomber89]

For every dollar I put into my account I am losing .25 cents on my money. Since my company matches up to 7% of what I put in should I lower what I am putting in to just 7% instead of the 10% I have been doing? Or should I stop putting money in it all together?

 

[John_J_Rambo]

For every dollar I put into my account I am losing .25 cents on my money. Since my company matches up to 7% of what I put in should I lower what I am putting in to just 7% instead of the 10% I have been doing? Or should I stop putting money in it all together?

keep putting in, just move assets to all cash if you're worried about losing more.

 

[Husker4real]

Have you been losing 25% for the life of the plan, or just in the last few weeks?

I know the answer to that.

Assuming you’re not retiring for several years, keep pouring it in.

 

[spinner4]

Everyone knows the smart move in the market is buy low and sell high. But yet people don’t practice this. Why?

especially in a retirement plan where it’s a long play.

 

[spinner4]

Have you been losing 25% for the life of the plan, or just in the last few weeks?

I know the answer to that.

Assuming you’re not retiring for several years, keep pouring it in.

Exactly - I keep telling everyone Wall Street is having a half of sell right now . Enjoy.

 

[headcard]

Really depends on your age and when you plan to retire. I would definitely keep putting in at least the 7%, as that match is a great benefit and in almost all cases I would put in as much as you can afford to.

 

[bomber89]

Have you been losing 25% for the life of the plan, or just in the last few weeks?

I know the answer to that.

Assuming you’re not retiring for several years, keep pouring it in.

Restarted a year ago after losing it all due to a family situation several years ago. 20 years of my retirement all gone to pay for a medical disaster. (self-employed & insurance didn't cover it all & I refused to declare bankruptcy)

So I started from scratch 11 months ago and since it wasn't much I have lost 25%. I probably should take it out of the high risk and move it to lowest risk I guess. But seeing how I only have another 20-22 years of working I have to take chances. Its only money I guess.

 

[spinner4]

Restarted a year ago after losing it all due to a family situation several years ago. 20 years of my retirement all gone to pay for a medical disaster. (self-employed & insurance didn't cover it all & I refused to declare bankruptcy)

So I started from scratch 11 months ago and since it wasn't much I have lost 25%. I probably should take it out of the high risk and move it to lowest risk I guess. But seeing how I only have another 20-22 years of working I have to take chances. Its only money I guess.

Sad to say but the market crash was probably a good thing for you then since you’ve still got 20 some years and need to make up some ground. Honestly a ton of securities had become too over valued. Now a ton is undervalued. I just don’t understand the people that were dumping money into the market on 2/12/2020 when the market was rocking but hesitant to invest when it’s low.

No one probably loss more $ in the market this last week then Buffet but you think he quit investing. That old man is likely licking his chops right now

 

[schuele]

If you stop contributing dollars your company will match, you're just giving yourself a pay cut. Why on Earth would you do that?

How you want to invest that money is another matter entirely, but for God's sake don't turn it down.

 

[bomber89]

If you stop contributing dollars your company will match, you're just giving yourself a pay cut. Why on Earth would you do that?

How you want to invest that money is another matter entirely, but for God's sake don't turn it down.

Yeah, I will probably just lower it to 7% until I think this is going to turn around then try to invest every penny I can.

 

[jmliehr]

Yeah, I will probably just lower it to 7% until I think this is going to turn around then try to invest every penny I can.

This is the most harmful thought you could have. Money is never lost until you sell, 20+ years to retirement is the reason you don’t sell. Keep your money in at 10%, you are buying cheaper right now. We will still probably lose some, but you have no need to sell, so why sell at 25-30% of peak? Why put in less now? If anything this is when you should push more chips in.

 

[dinglefritz]

Yeah, I will probably just lower it to 7% until I think this is going to turn around then try to invest every penny I can.

or keep piling in any new money to a fixed vehicle then start dollar cost averaging in to higher risk stock over a year's time. If you've already taken the hit on the stock funds I probably wouldn't pull out of them now. It's hard to know. We're in uncharted territory.

 

[dinglefritz]

This is the most harmful thought you could have. Money is never lost until you sell, 20+ years to retirement is the reason you don’t sell. Keep your money in at 10%, you are buying cheaper right now. We will still probably lose some, but you have no need to sell, so why sell at 25-30% of peak? Why put in less now? If anything this is when you should push more chips in.

Unless it goes lower yet. There's still some downside potential. There's a lot of pain to come when companies start reporting earnings especially for the 2nd quarter IMO. We just don't know. I would put more in but hopefully he has a fixed vehicle within his plan that allows him to put the money in and then dollar cost average in to the stock side.

 

[stonesak]

If the market hasn't recovered the losses and plenty more in twenty years, retirement will be the least of your worries.

 

[Sinomatic]

Always at least get the full match. You've got 20 years man, that is a really good chunk of time!

These are the scary times because you're careening down a rollercoaster ...but that's also why it can be fun. You've got TONS of time to click click click back up then next crest.

It really only gets critical when you're about to retire. By then you should figure out a business you want to start that you can do when you want to in your older years...I want to be a barista and talk to the young hotties all day drinking free coffee!!

 

[GBRforLife1]

Restarted a year ago after losing it all due to a family situation several years ago. 20 years of my retirement all gone to pay for a medical disaster. (self-employed & insurance didn't cover it all & I refused to declare bankruptcy)

So I started from scratch 11 months ago and since it wasn't much I have lost 25%. I probably should take it out of the high risk and move it to lowest risk I guess. But seeing how I only have another 20-22 years of working I have to take chances. Its only money I guess.

I almost didn't think you were serious.

Think of it as everything you put in now you get a 25% discount on. If you thought it was a good idea before, you should think it's a great idea now.

If you have 20-22 years put more in.

If you take it out now you lock in those losses.

 

[scarletred]

For every dollar I put into my account I am losing .25 cents on my money. Since my company matches up to 7% of what I put in should I lower what I am putting in to just 7% instead of the 10% I have been doing? Or should I stop putting money in it all together?

You should never quite putting money in a retirement fund..Now is the best time to do it you’ll get more bang for your buck down the road and you won’t regret it...

Take it from someone who retired early..

 

[GBRforLife1]

You should never quite putting money in a retirement fund..Now is the best time to do it you’ll get more bang for your buck down the road and you won’t regret it...

Take it from someone who retired early..

Looking back is there anything else you'd recommend or avoid?

What did you do to retire early?

 

[scarletred]

Looking back is there anything else you'd recommend or avoid?

What did you do to retire early?

Payoff my credit card EVERY month..a credit card is only free money for a month..Doesn’t make sense just to pay the monthly fee, your throwing money away..

Maxed out on my 401-K.
Full amount in my Roth IRA.
If possible pay off your mortgage as soon as possible, you wouldn’t need me to tell anyone that’s kind of a no brainer..

Most importantly spend what you can afford but life isn’t about saving all your money all the time, and you don’t have to buy cheap things either..

Another words live within your means.

 

[SLOHusker]

I switched jobs 6 months ago and for the first several months I had no 401k to contribute into. Every previous job for the past couple decades I invested in the 401k plans and benefited in good markets and lost some in the bsd. When we bought a house I pulled out loans and once even withdrew a chunk which meant getting hit by tax penalties.
In the interim this time around I've been taking hundreds of my post-tax money every paycheck and investing on my own with Robinhood. I see several benefits:
1) I will never be taxed for withdrawals. There may be some cap gains down the road but these are paltry compared to deferred income taxes for 401k
2. I completely control the investments. I can invest how I want in companies I want. I can mix long term investments with short term gain bets.
3) If an emergency ever arose we could simply sell some stock without all the rigamarolle
4) I can adjust my investing per paycheck. When bills are higher I can invest less. When I have more cash I can invest more.
So, as of now I'm not sure I'll ever start up another 401 k..

 

[Suhrreal]

From what I have read and what I understand, hell is coming and retirement funds are about to be collateral damage. You still have the hope of Fed and government intervention.

 

[Kleitusbpn]

From what I have read and what I understand, hell is coming and retirement funds are about to be collateral damage. You still have the hope of Fed and government intervention.

Half right in my opinion.

Oh the hell you're referring to will probably happen. But one fact nobody ever wants to think about is the largest untapped taxable funds by far in this country is the retirement funds. So what's left of them will probably be taxed at some point in the next decade even ignoring that redemptions are starting to happen for boomers due to age.

Outside of the company matches I've never understood why people use the 401k method of investing. Trapping your money in a place others control has always seemed suicidal at best. The choices available in those accounts are god-effing-awful.

 

[scarletred]

From what I have read and what I understand, hell is coming and retirement funds are about to be collateral damage. You still have the hope of Fed and government intervention.

And where did read that from?

 

[husker2612]

Everyone knows the smart move in the market is buy low and sell high. But yet people don’t practice this. Why?

especially in a retirement plan where it’s a long play.

I don't think we are at the low yet.

 

[RiLLLLLLLLey]

Have you been losing 25% for the life of the plan, or just in the last few weeks?

I know the answer to that.

Assuming you’re not retiring for several years, keep pouring it in.

It'll recover in about a couple of months, and probably surpass the initial highs. I would definitely expect the losses to get worse in April. Just mentioning this for everyones benefit.

But Trump's demonstrative actions of dismantling Obama's CDC prep team is why we're here.

 

[timnsun]

It'll recover in about a couple of months, and probably surpass the initial highs. I would definitely expect the losses to get worse in April. Just mentioning this for everyones benefit.

But Trump's demonstrative actions of dismantling Obama's CDC prep team is why we're here.

Mods gave permission for political posts in covid thread. Please keep it there.

 

[bomber89]

It'll recover in about a couple of months, and probably surpass the initial highs. I would definitely expect the losses to get worse in April. Just mentioning this for everyones benefit.

But Trump's demonstrative actions of dismantling Obama's CDC prep team is why we're here.

Not a fan HUGE Trump fan, but Trump didn't dismantle the CDC prep team. That is a common untruth. He moved the entire team to another location and department.

 

[GBRforLife1]

I don't think we are at the low yet.

We are about 20% above the most recent lows.

 

[husker2612]

We are about 20% above the most recent lows.

Its going down more. The economy is just at the start of this epidemic. This has a min of 2-4 months and the economy is only getting worse. Some experts are thinking this could last 12- 18 months. This 20% gain from the low is just a pull back. I could be wrong and am a lot, but I have a feeling we will see 2008 levels before this gets a solid base and starts heading back up.

 

[scarletred]

Its going down more. The economy is just at the start of this epidemic. This has a min of 2-4 months and the economy is only getting worse. Some experts are thinking this could last 12- 18 months. This 20% gain from the low is just a pull back. I could be wrong and am a lot, but I have a feeling we will see 2008 levels before this gets a solid base and starts heading back up.

We’re in deepshit if the dow goes down to the 2008 level..

Experts are thinking it will take 12-18 months for a vaccine hard telling about the economy..
Hope you’re wrong on this..

 

[Kleitusbpn]

We’re in deepshit if the dow goes down to the 2008 level..

Experts are thinking it will take 12-18 months for a vaccine hard telling about the economy..
Hope you’re wrong on this..

The debt levels in this county for businesses and individuals are such that it could go damn near to zero without intervention. It won't... because they're intervening. The question is what level it stops.

If you have paid attention the last two decades you can see the fact that the state has become the economy because the political class is too scared of the consequences of actually fixing the economy (hint: lots of rich people go broke including them).

So they will print and print some more.

What's the turning point? Honestly if it follows 2008s pattern gold will bottom first, the rest of the market some months after.

 

[TheBeav815]

You should be putting MORE in, not less. A month ago you were paying to buy some of the most expensive stock in history.

Repeat after me, "It's not a loss until you sell it." You didn't have that money when the market was high and you haven't lost it now that it's down a little.

Now you have purchasing power. When this all calms down the market is going to take off like a goddamned rocket.

I think it will go lower in Q2 as the news of the economic contagion rolls in and bankruptcies start piling up. But 20 years? You stand to get huge returns.

I got my first "real" job with a 401K in 2009. I made like 28% returns in my first years being in that plan. That time is coming back around.

 

[husker2612]

We’re in deepshit if the dow goes down to the 2008 level..

Experts are thinking it will take 12-18 months for a vaccine hard telling about the economy..
Hope you’re wrong on this..

So do I

 

[The_Glove_Man]

Time, not timing, is the key to making money in the stock market.

This is the most harmful thought you could have. Money is never lost until you sell, 20+ years to retirement is the reason you don’t sell. Keep your money in at 10%, you are buying cheaper right now. We will still probably lose some, but you have no need to sell, so why sell at 25-30% of peak? Why put in less now? If anything this is when you should push more chips in.

 

[Suhrreal]

We’re in deepshit if the dow goes down to the 2008 level..

Experts are thinking it will take 12-18 months for a vaccine hard telling about the economy..
Hope you’re wrong on this..

Believe it or not, the vaccine has little to do with the problems we are experiencing in the economy. If anything, the quantitative easing measures used to get through the last financial crisis are more responsible. We heard from plenty of people ~10 years ago that QE was just kicking the bucket down the road and here we are.

This won't be a popular opinion, but the coronavirus "panic" is being pumped up in the media for a variety of reasons. Number one, to cover some asses in the financial sector. Number two, to batter Trump's prospects at a re-election (not a political take, just a reality that the majority of the media leans a certain way). That's not to diminish the severity of the coronavirus, it's just an incredibly handy, coincidental circumstance for some people with power.

 

[zamzman]

I've rebalanced my account. Effectively that is buying stocks as that portion was down a lot.

 

[Kleitusbpn]

Believe it or not, the vaccine has little to do with the problems we are experiencing in the economy. If anything, the quantitative easing measures used to get through the last financial crisis are more responsible. We heard from plenty of people ~10 years ago that QE was just kicking the bucket down the road and here we are.

This won't be a popular opinion, but the coronavirus "panic" is being pumped up in the media for a variety of reasons. Number one, to cover some asses in the financial sector. Number two, to batter Trump's prospects at a re-election (not a political take, just a reality that the majority of the media leans a certain way). That's not to diminish the severity of the coronavirus, it's just an incredibly handy, coincidental circumstance for some people with power.

Pretty much word for word what I was thinking.

 

[RiLLLLLLLLey]

Not a fan HUGE Trump fan, but Trump didn't dismantle the CDC prep team. That is a common untruth. He moved the entire team to another location and department.

https://www.snopes.com/fact-check/trump-fire-pandemic-team/

 

[RiLLLLLLLLey]

Mods gave permission for political posts in covid thread. Please keep it there.

The mods also acknowledged that there's no way to keep the two topics separate. If they want to delete my posts, that's fine.
https://www.snopes.com/fact-check/trump-fire-pandemic-team/

 

[timnsun]

The mods also acknowledged that there's no way to keep the two topics separate. If they want to delete my posts, that's fine.
https://www.snopes.com/fact-check/trump-fire-pandemic-team/

Fair enough... I guess my greater point was I didn't want a pissing match to ensue and have this thread shut down. Guess there's still hope for that yet.