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    401k and todays stock market.

    Okay, i've been investing alot of money into 401k and ROTH IRA. I'm currently 25.

    The stock market these days have been terrible! I've lost sooooo much money. Is this something i shouldn't worry about? Should I just be riding out the market? I just hate losing so much money.

    #2
    Tell me about it. As of Friday, I was -$30 for the year in my 401k (lost like $600 in the last few weeks lol)

    Maybe this is a stupid question, but why don't 401k accounts have an option to just let the money sit for a "okay" interest rate w/o fees? Like a regular bank account...

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      #3
      That's a blanket statement that doesn't apply to everyone. What stocks are you riding?

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        #4
        Originally posted by m3racer View Post
        That's a blanket statement that doesn't apply to everyone. What stocks are you riding?
        For my employers 401k here are my funds.

        22.96% Baron Growth Fund - BGRFX
        4.22% Vanguard LifeStrategy Growth Fund - VASGX
        6.46% Vanguard LifeStrategy Mod Growth - VSMGX
        20.97%Vanguard 500 Index Fund Inv - VFINX
        8.44% Vanguard Growth Index Fund Inv - VIGRX
        19.73% Vanguard PRIMECAP Fund Investor - VPMCX
        17.33% Vanguard Emerging Mkts Stk Idx Inv - VEIEX

        and ROTH IRA is T Rowe Price retirement 2040 fund. TRRDX.

        I was asking for a suggestion on what i should do. I hate losing this much money.

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          #5
          Mistawho: At 25, you shouldn't be worrying about this... just keep putting money into your 401k, you're buying more stocks at a lower price. This is just a minor blip that won't make the slightest difference in the long run.

          Newbie: There is such an option... normally there is a money market fund or similar fund you can put your money into. But if you have a long way to retirement, it's not recommended.

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            #6
            All I see in my 401k is a stable value fund but it has a .80% fee!

            I'm 26 and I have all my stuff in an S&P 500 index while I learn more from sites like this one

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              #7
              Nice job, Newbie. Just a suggestion though... you might want to gradually move 15-20% of your money to international stock funds. You have all your eggs in the large U.S. company basket.

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                #8
                Originally posted by sweeps View Post
                Nice job, Newbie. Just a suggestion though... you might want to gradually move 15-20% of your money to international stock funds. You have all your eggs in the large U.S. company basket.
                Actually ~20% of the portfolio is int'l. The only problem I see with that is ~17% of it is in emerging markets. You may want to add some established int'l market exposure to your holdings.
                The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
                - Demosthenes

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                  #9
                  Originally posted by kv968 View Post
                  Actually ~20% of the portfolio is int'l. The only problem I see with that is ~17% of it is in emerging markets. You may want to add some established int'l market exposure to your holdings.
                  I think you have confused "Mistawho" and "Newbie". Newbie says he is 100% in an S&P 500 fund.

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                    #10
                    Originally posted by sweeps View Post
                    I think you have confused "Mistawho" and "Newbie". Newbie says he is 100% in an S&P 500 fund.
                    Yes I did. Sorry about that Sweeps.
                    The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
                    - Demosthenes

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                      #11
                      No problem, kv

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                        #12
                        When in vesting for your retirement, please invest for the long term. If you're well diversified, short-term market fluctuations should not affect you.

                        I wouldn't worry about it until you're much closer to your retirement horizon.

                        Think about it this way. The more money you put in while the market is down, the more shares you can buy. When the market bounces back, your shares will be worth more. It's like buying stocks on sale.


                        A well-diversified portfolio should return you money no matter what the market is doing: up, down, same. You should hedge your position in view of your retirement horizon.

                        You may want to consult a financial planner.
                        Last edited by InDebtInDC; 11-13-2007, 03:47 AM.

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                          #13
                          If you're only 25yo than you might want to look into the Vanguard target retirement funds. I plan on using the 2040 target retirement fund as 0f 1/08.

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                            #14
                            Originally posted by m3racer View Post
                            If you're only 25yo than you might want to look into the Vanguard target retirement funds. I plan on using the 2040 target retirement fund as 0f 1/08.
                            Well my ROTH IRA is a 2040 target fun with T Rowe Price.

                            I don't have that choice with my vanguard.

                            Here our my choices for 401k.

                            Vanguard LifeStrategy Consrv Grwth - VSCGX
                            Vanguard LifeStrategy Growth Fund - VASGX
                            Vanguard LifeStrategy Income Fund - VASIX
                            Vanguard LifeStrategy Mod Growth - VSMGX
                            Vanguard Federal Money Mkt Fund - VMFXX
                            Vanguard High-Yield Corp Fund Inv - VWEHX
                            Vanguard Inter-Term Treasury Inv - VFITX
                            Vanguard Total Bond Mkt Index Inv - VBMFX
                            Vanguard Wellington Fund Inv - VWELX
                            Baron Asset - BARAX
                            Baron Growth - BGRFX
                            Royce Total Return Serv - RYTFX
                            Vanguard 500 Index Fund Inv - VFINX
                            Vanguard Growth Index Fund Inv - VIGRX
                            Vanguard PRIMECAP Fund Investor - VPMCX
                            Vanguard Selected Value Fund - VASVX
                            Vanguard Windsor II Fund Inv - VWNFX
                            Janus Worldwide -JAWWX
                            Vanguard Emerging Mkts Stk Idx Inv - VEIEX
                            Vanguard International Growth Inv - VWIGX
                            Vanguard REIT Index Fund Inv - VGSIX

                            Any suggestions? My current 401k portfolio is above.... The VERY first post. i've had my 401k since 22 years old.. now 25 years old.....

                            Comment


                              #15
                              The target funds are nice, but I do not think they are aggressive enough. You are very very far away from retirement. I think you can afford to be a little more aggressive than what the target funds can offer.

                              I would encourage you to be more aggressive and take more risks with an aggressive high growth fund. Maybe once you hit 30 you can back off to more moderate growth funds.

                              That's just my opinion though. Not everyone is aggressive as me.

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