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Thread: 401k

  1. #31
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    Quote Originally Posted by Buff View Post
    I don't think your passive vs. active description is accurate.

    1.) Actively managed mutual funds have been around for decades - so active management and the ability for regular joes to invest in it is not a new phenomenon at all.
    2.) Historically, "middle class investors and below" have been more reliant on active management more than passive - which is also associated with higher fees than passive.

    The current trend is much more to passive/low fee index fund investing. Warren Buffet famously bet hedge fund managers that over 10 years a passive investment in the S&P 500 would beat any actively managed hedge fund - and at last check he was winning with a few years to go. There is real value in active management, but the problem is trying to find an active manager who is worth their fees.

    http://www.marketwatch.com/story/war...bet-2014-12-04
    I'm not act like know all there is, but there is a shit ton out there to know.

    You wouldn't happen to know the "fees" between the two (average ballpark cost)? I only get to get on here early in the am due to work and school. thx in advance

  2. #32

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    This is why I am worried, every single day this week almost every fund they offer has dropped in value.

    Funds and drops since yesterday.

    American Century Equity Growth Ret Acct Px -0.09
    American Century Mid Cap Value Ret Acct Px -0.03
    Dfa Inflation-Protected Securities Portfolio Ret Acct Px -0.01
    Franklin Small-Mid Cap Growth Ret Acct Px -0.01
    Hartford Small Cap Growth Hls Ret Acct Px -0.04
    Invesco Comstock Ret Acct Px -0.04
    Invesco International Growth Ret Acct Px -0.22
    Ivy Core Equity Ret Acct Px -0.04
    Mfs International Value Ret Acct Px -0.2
    Oppenheimer Developing Markets Ret Acct Px -0.65
    Pioneer Bond Ret Acct Px 0.01
    Prudential Total Return Bond Ret Acct Px 0.06
    Transamerica International Equity Ret Acct Px -0.04
    Transamerica Partners High Yield Bond Ret Acct Px -0.04
    Transamerica Partners Stock Index Ret Acct Px -0.09
    Transamerica Stable Value Core Account -0.01
    Vanguard Small-Cap Index Ret Acct Px -0.07
    Vanguard Target Retirement 2010 Ret Acct Px -0.02
    Vanguard Target Retirement 2015 Ret Acct Px -0.06
    Vanguard Target Retirement 2020 Ret Acct Px -0.06
    Vanguard Target Retirement 2025 Ret Acct Px -0.09
    Vanguard Target Retirement 2030 Ret Acct Px -0.09
    Vanguard Target Retirement 2035 Ret Acct Px -0.12
    Vanguard Target Retirement 2040 Ret Acct Px -0.12
    Vanguard Target Retirement 2045 Ret Acct Px -0.15
    Vanguard Target Retirement 2050 Ret Acct Px -0.14
    Vanguard Target Retirement 2055 Ret Acct Px -0.13
    Vanguard Target Retirement Income Ret Acct Px -0.03

    When does the bleeding stop..

  3. #33

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    Quit looking at it everyday. You're only option is to request a different investment option. Ask them if any other options have been performing any better.

    Either way, you need to stop looking every day. Check once a quarter and change it then if you need to.

  4. #34

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    Those are the only options they have, of which I invested in 3. Hartford Small Cap Growth Hls Ret Acct Px -0.04, Transamerica International Equity Ret Acct Px -0.04, Transamerica Partners Stock Index Ret Acct Px -0.09.

    I would move the funds around if there was one I could move it to that wasn't consistently losing money.

    If it doesn't gain money I wouldn't freak out because I "think" I am basically making money anyway as I am in the 25% tax bracket right now and when I need to draw from this I should be in the 15% tax bracket, so should save 10% regardless.

    Losing money is another story.

    Just doesn't make me feel warm and fuzzy about investing money instead of putting it in savings when all I do is see it go down.

  5. #35
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    Rick, buddy, you need to completely reset your expectations about investing in a 401k. Some days it's going to creep up a little bit, other days it's gonna go down a little bit. It might go down for a month straight. You might lose money for 2 years in a row, but history has shown that over virtually any long time period stocks are going to appreciate at a better rate than savings account interest, bonds, gold, etc. You've just gotta be in it for the long haul. Somebody who panicked and sold when everything was cratering in 2008 would have wiped themselves out - if they would have stayed invested, then they'd have participated in the subsequent 100% rise over the next 5-7 years.

    If you take the long view - 5, 10, 20 years - assets/funds/businesses are very likely to appreciate. Especially if the fund has a long-term track record of doing so.

    There are people who spend their whole lives studying the markets, trying to time them correctly, and they can't do it effectively. So instead of trying to worry about putting your money in when it's going up, and taking it out when it's going down, you just spread it out across the board and live with the ups and downs.

    Reiterating a post I made earlier - keep in mind that you're entering the market during a period of unprecedented highs. Many people would argue that the market is overdue for a sustained downturn - which is actually healthy when everything starts to get overpriced/oversold - but it's worth setting your expectations accordingly that the market cannot just go up forever and it's had a pretty healthy run since 2008.

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  7. #36

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    Ya before getting started with all this I assumed 401K was almost like a high interest savings account. Wrong.

    Part of my problem is we are just getting started with doing real saving, and I was considering the 401K AS my savings (except a small emergency savings we built), and we were pouring all the eggs in one basket, and I was watching the eggs fall out.

    I am going to take your advice and quit watching it but I am going to reduce the eggs, I am putting a much smaller pay percentage in the 401K starting next check and will start dumping the remainder of what I would have done in a savings instead, until I get that built up a decent amount and don't have to feel that my entire basket is at risk.

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  9. #37
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    Quote Originally Posted by Rick View Post
    This is why I am worried, every single day this week almost every fund they offer has dropped in value.

    Funds and drops since yesterday.

    American Century Equity Growth Ret Acct Px -0.09
    American Century Mid Cap Value Ret Acct Px -0.03
    Dfa Inflation-Protected Securities Portfolio Ret Acct Px -0.01
    Franklin Small-Mid Cap Growth Ret Acct Px -0.01
    Hartford Small Cap Growth Hls Ret Acct Px -0.04
    Invesco Comstock Ret Acct Px -0.04
    Invesco International Growth Ret Acct Px -0.22
    Ivy Core Equity Ret Acct Px -0.04
    Mfs International Value Ret Acct Px -0.2
    Oppenheimer Developing Markets Ret Acct Px -0.65
    Pioneer Bond Ret Acct Px 0.01
    Prudential Total Return Bond Ret Acct Px 0.06
    Transamerica International Equity Ret Acct Px -0.04
    Transamerica Partners High Yield Bond Ret Acct Px -0.04
    Transamerica Partners Stock Index Ret Acct Px -0.09
    Transamerica Stable Value Core Account -0.01
    Vanguard Small-Cap Index Ret Acct Px -0.07
    Vanguard Target Retirement 2010 Ret Acct Px -0.02
    Vanguard Target Retirement 2015 Ret Acct Px -0.06
    Vanguard Target Retirement 2020 Ret Acct Px -0.06
    Vanguard Target Retirement 2025 Ret Acct Px -0.09
    Vanguard Target Retirement 2030 Ret Acct Px -0.09
    Vanguard Target Retirement 2035 Ret Acct Px -0.12
    Vanguard Target Retirement 2040 Ret Acct Px -0.12
    Vanguard Target Retirement 2045 Ret Acct Px -0.15
    Vanguard Target Retirement 2050 Ret Acct Px -0.14
    Vanguard Target Retirement 2055 Ret Acct Px -0.13
    Vanguard Target Retirement Income Ret Acct Px -0.03

    When does the bleeding stop..
    You should be happy prices are going down.

    You should be cheering for a huge crash.

    You are just getting started. If the market crashes, or prices go down, you are getting a discount on every purchase you make going forward.

    If this type of market movement is upsetting to you, you simply need to do something else with your money.

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