decipherlinda
133 posts
msg #70084
- Ignore decipherlinda |
12/29/2008 12:12:28 AM
Don't know if this discussion is appropriate but, if it is, I would like thoughts on whether now is the time to move stocks in 401K into cash.
This 401K is with a previous employer so there are no penalties is sell the stocks while keeping the 401K or selling the stocks and moving to an IRA.
For the next year it looks like the economy is going to continue to move downward which should take my stocks with it. I'm torn between further risk with existing stocks versus Obama being able to pull the economy out.
Any ideas?
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marine2
963 posts
msg #70085
- Ignore marine2 |
12/29/2008 1:58:47 AM
All cash doesnt sound bad until you see four things, housing index begins moving upward again in a consistant manner, and the auto companies begin selling cars again giving them viability again. The credit markets need to begin lending more fluidly again. The job outlook looks more promising. Until then, being in cash positions isnt a bad idea.
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chetron
2,817 posts
msg #70088
- Ignore chetron |
12/29/2008 8:28:49 AM
if you believe stockfetcher's home page when you click the "sectors and industries" tab, the world is recovering nicely for the last month. : )
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TheRumpledOne
6,411 posts
msg #70092
- Ignore TheRumpledOne
modified |
12/29/2008 9:37:53 AM
Dems in control.... load the boat with stem cell companies..
fetcher[
symlist(STEM,ASTM,GNBT,CUR,DNA)
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petrolpeter
439 posts
msg #70110
- Ignore petrolpeter
modified |
12/29/2008 10:58:57 AM
If we were at 6500 it sure would be an easier pick but at 8500 the market is full of phony TARP money and the likes in which our gov. experts want us to believe is a replacement for a booming economy.At the same time they burn with abandon the only real moneys they see out there,the masses future tax revenues and 401K savings to create a spectacle for all of us to watch.There is going to be a turn someday just like the tech bubble burst and oil will probably be greasing the wheels.DXO is got volume now and should work on the turn.
Been in cash in 401 for a long time,learned a little from the tech bubble not oh so long ago and if we were at 6500DOW would prob go all in.
A Roth might be worth a look for a 401K roll-out.Pay the tax now,especially if there is a tax loss this year and avoid the new Dem. tax hikes and expiration of the Bush tax cuts.
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marine2
963 posts
msg #70145
- Ignore marine2 |
12/29/2008 10:44:42 PM
Play with money you can afford to lose. The rest save save save. Someday things will get better but for now it's way too scary to gamble your lifes savings away. Play safe, and look good later down the road.
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luc1grunt
622 posts
msg #70151
- Ignore luc1grunt |
12/30/2008 6:35:02 AM
Since the 401K is a long term investment, why not increase the purchases of S$P value funds as cost averaging over the long haul has been proven effective over time? Your funds were purchasing at well over 1000-1200 over the last couple years (depending on your fund options). Dumping now realizes the max loss. I'm no investment expert, but I have invested for years and it is treated quite differently than my trading methodology.
2 cents.
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decipherlinda
133 posts
msg #70159
- Ignore decipherlinda |
12/30/2008 10:26:13 AM
Thanks everyone! Definitely excellent food for thought.
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petrolpeter
439 posts
msg #70162
- Ignore petrolpeter
modified |
12/30/2008 10:41:52 AM
Keep your retirement account for sure but know what your going to end up with in the end.When you quit and retire and are used to spending 60-100 thousand(average income) a year out of a 401K you might as well add 40% tax when all is said and done by that time.Include property tax and any kind of debt/mortgages to that at all combined with a market drop like the one we are seeing now a substantial 401K can be devoured in no time!Seen it happen in the tech bubble era.The stocks/funds 401K these day seems to be the payee for the tax bureaucracy,shorts,recession,fraud and legal larceny,you name it.Sitting ducks.
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Eman93
4,750 posts
msg #70213
- Ignore Eman93 |
12/30/2008 11:13:48 PM
Learn as much as you can.
Knowlage is power....
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