I don't know how many people have missed it but since I've retired I've been telling everybody to put just what the company will match into their 401K.If you can save extra start a savings account,Roth,or bury it in the backyard under the doghouse.A lot of guys at O.D. that are getting close to retirement have been maxing out their 401 every week.Well the market is taking a dump and everybody getting ready to retire has lost their azz, it'll go back up but no soon enough for those guys.So now they have to make a choice.Take the loss and retire or keep working.Don't get in a predicament like that.Spread your money out and keep it as secure as you can.The stock market is legalized gambling and no better...But that's just my opinion.
ODFL | How does your 401 look today ?
- Thread starter JIM BOB
- Start date
Jim Bob, I've never had a 401K, but how and why does the stock market affect it? From my limited understanding, a 401K is basically a savings account, not necessarily vested in stock...it's just money you put in, and your employer puts in...period, or so I thought. I don't see why the value would be dependant on stock fluctuations, unless like a mutual fund, it is actually buying stock.
I will have to check tomorrow but I think my rate of return will be between 8 and 9 % and I think it will be down about 6 % since its peak before the current down trend. That is disappointing but still better than bank rates.
Jim you seem unhappy about your returns are you experiencing tax problems. I know that you still have to pay taxes on your 401 K withdraws after you retire and Roth IRAs would be pretaxed income. I have both but am currently putting the lions share into the 401 K but plan to start putting a ever increasing portion into the Roth as I approach my last 10 to 15 years before I retire.
Jim you seem unhappy about your returns are you experiencing tax problems. I know that you still have to pay taxes on your 401 K withdraws after you retire and Roth IRAs would be pretaxed income. I have both but am currently putting the lions share into the 401 K but plan to start putting a ever increasing portion into the Roth as I approach my last 10 to 15 years before I retire.
Welcome pro driver are you with OD I see you just started posting.
I can answer your question. In most 401 Ks you can invest in savings only. Usually a 401 K has several options you can go with a money market (which is like a savings), Mutual funds, company stock, and sometimes brokerage where you invest in outside mutual funds and preferred stock.
You can put all your money into one of these options (not brokerage) or a mix of them also they offer a plan where they will invest it for you in a diversified mix of options for a additional fee.
You pay no taxes on your contribution so you will have to when you retire. And the company you work for contributes a small percetage into your fund but that adds up.
Welcome to the O.D. forum Prodriver.Most of my 401 was in mutal funds and O.D. stocks.The mutal fund management is what caused me grief.
I rolled mine over to the bank,probably will never touch it.Can't bring myself to pay the tax.
Yeah I could see where that would be a problem. You probably find out the government sticks it to you real good if you use the money. Jim You got to enjoy your retirement. Man I know you might want to leave your kids a decent inheritance but if they love you they want to see you live and enjoy it. I know you sweated for the money and hate to spend it but Jeez man go to the Caribbean or something do some things. who knows you might end up in a nursing home or something and than Medicaid will take it anyway. Make sure you get a beneficiary deed on the home and get your insurance beneficiary strait. make your bank accounts TOD transferable on death and your car titles. All this avoids your family probate. These are good ideas no matter how old you are.
I just took the physical, drug test, and road test for OD today. I am going to start linehauling in the near future. TM says it will take about 2 weeks before I actually start working. I'm really anxious to see if it's any good. I sure hope so. I want to stay in one job for a long long time. Tired of switching.
I lost $8000 these past 3 weeks. I'm such an idiot, I should have transferred my funds 2 weeks ago into the money market, (which I finally got around to doing today). I'll try and preserve whatever else I have until I see an upward trend. Most likely, when the upward trend starts, it will probably take about the same amount of time to return to where it was before this downturn.
I feel your pain,as a matter of fact I felt it more than once.
Me too I knew it was coming I had gone over it over and over that lending was tooooo lose and it would come down some day I would have made a lot of money if I had dropped it into a money market one month to two weeks ago. But I think most likely I will recover it and do OK.
Good luck to you,everybody here hopes it is what you're looking for.Be careful.
I have been here 12 years they bought me. Had to earn my whiskers but it was not to bad. Good luck. Pro Driver
JimBob said:
I felt it 9 years ago in the dotcom crash. The dotcoms got me up to $120,000 after 11 years of contributions. Knocked down to $13,000 and got halfway back to $120,000 after another 9 years of contributions. $8000 is enough of a hit to take this time around.
I felt it 9 years ago in the dotcom crash. The dotcoms got me up to $120,000 after 11 years of contributions. Knocked down to $13,000 and got halfway back to $120,000 after another 9 years of contributions. $8000 is enough of a hit to take this time around.
How would you feel if tomorrow was retirement day ? I hope you've got enough time to get it back.
Not too happy. I have about 8 more years to build it back to a decent level, providing no more major crashes in the market.
Good luck dude I was lucky and did not get hit that hard by the Dot com. Did not have a lot invested in stock though was paying off my home. My strategy invest heavy in stocks till 2010 than re analyze. If you want to know why PM me.
and Jim don't go to the Bahamas,went three weeks ago and was really disappointed.The people there are practically begging for money.The only REAL resort the i saw was Paradise Island on Nassau.We did not go over to see it because the drivers i saw scared me not to mention they drive on the left side of the road.
You can tell who makes the moneyyyyyyy.