Just got 2008 401K report

[photobob]

I lost 31.5 % of my 401K in 2008! I am very glad to be employed, looks like I will have to be employed until I die at this rate.

 

[CookieDiva]

We probably have similar losses. But we have at least 15 years (or more) until DH retires, so I am HOPING that we recoup in that time. And every month when we put more money into our 401K, I keep thinking that we are getting more for less while the market is down.

 

[Frankiesmom]

I haven't looked at the past 2 statements-just shredded them-still in the envelope. DH has about 20 years till retirement; so we'll make it up (hopefully)- so I haven't looked.

 

[frisco]

Haven't looked at anything for 2008. Don't want to know. My wife and I actually discussed closing our 401k and just banking the money.

 

[Dan Murphy]

....lost 31.5 %...

Down, not lost...big difference.

Up your deposit, lower your overall average purchase price while prices are down (on sale).


(not to be taken as financial advice)

 

[CookieDiva]

Down, not lost...big difference.

Thanks for that reminder, Dan. Sometimes it is hard to think like that.

(not to be taken as financial advice)

Will keep that in mind.

 

[HugsForEeyore]

2 of my retirement funds are now worth well less than my initial investment. I had these accounts for over 10 years. Nice to be back at square zero basically starting from scratch at my age. Sigh.

 

[CPT Tripss]

Just think how much better off you would be if your social security account were privatized and looked like your 401K.

 

[DisneyBamaFan]

I did a big no-no under most circumstances, but it saved me a bundle in 2008. I took out a loan against my 401k instead of a home equity loan from my bank to pay for some home improvements early in the year. I knew it was a bad decision, but I just had a hunch.

Well, the money in the loan fund (equal to the amount of the loan) is set aside in an account that earns no interest - but it also does not lose value. The result - that money has not lost value since I took out the loan.

The rest of my 401k lost 29%...

 

[DisneyBamaFan]

Just think how much better off you would be if your social security account were privatized and looked like your 401K.

LOL - not good at math. A whole lot better off. SS will not exist when I retire...

 

[eliza61]

I lost 31.5 % of my 401K in 2008! I am very glad to be employed, looks like I will have to be employed until I die at this rate.

BAD PHOTOBOB BAD!
Never, ever open your 401K statement. It will only lead to depression and heavy drinking.

I'm down 30% also and my kids college tuition also hit the tanker. Of course my oldest is supposed to start college in September.

Sort of like the tri-fector of financial death. Lousy retirement, horrible job market and 2 teens to educate.

 

[arminnie]

I lost 31.5 % of my 401K in 2008! I am very glad to be employed, looks like I will have to be employed until I die at this rate.

Well I lost 100% of my retirement, savings, and home equity when I was in my 40s. More than 100% because I owed a HUGE amount of debt from short house sales. I had to cash out everything early and pay taxes and penalties.

I used to think that I would NEVER be able to retire. The guy in the office next to me had a program on his computer that showed the number of days until he would turn 59 1/2 and could retire. We were the same age, and I was SO jealous every morning when I walked into his office.

Guess what - I ended up retiring before him!

Even though I have some big losses on paper right now. I am okay because I don't HAVE to sell anything. I have enough cash assets to live on for at least 5 years.

Advice for the future - DO NOT invest money that you are going to need short-term (tuition, house downpayment, car, etc.) in risky assets.

 

[John VN]

It is sad to read about declining 401K values, however, my belief is that everyone should become more active in the control of their contributions and where they are placed.

I learned my lesson the first go round and took action with DW's and my 401K and have gained, albeit a small return, the past year+.

Become involved and just don't rely on the so called Professionals.

 

[Pin Wizard]

Yup! They'll find me dead at my desk one day. That actually happened to someone at a company I formerly worked for.

 

[ntsammy5]

I was up 7%

I moved to money market in 2007 - I was getting worried about all the credit derivatives.........

I don't want to move back in yet because no matter where you buy if it goes down you still lose - I'm convinced the market will take years to recover.

 

[hrh_disney_queen]

Same here. We have been saving for 25 years, so much is gone I don't even look. We are afraid to sell, but afraid to keep the stock. So we just procrastinate dealing with it. When the auto industries were looking bad for awhile, we did take most of our funds out of the uninsured Ford money market and put it in an insured bank money market. That started out at 3+%, now we are making 0% on that. But at least the principal it is safe. We own our houses, so we don't have to worry about that.