Monday, July 28, 2008
The best things in life are free, but ...
So, my main investment vehicle, besides the house, is a 401(k), which I hardly ever think about. I'm thinking about it just a little right now, but I still have no plans to change my allocations.
I'm 100 percent stocks.
Every time the stock market stumbles, I say, they're havin' another sale! Dollar cost averaging works for me. I don't expect to do anything with my 401(k) but leave it alone for at least 20 more years.
What say y'all? Yer take on the market, the economy, yer own investments and retirement strategy, etc. ...
--ER
I'm 100 percent stocks.
Every time the stock market stumbles, I say, they're havin' another sale! Dollar cost averaging works for me. I don't expect to do anything with my 401(k) but leave it alone for at least 20 more years.
What say y'all? Yer take on the market, the economy, yer own investments and retirement strategy, etc. ...
--ER
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When the market is in bull cycle, it sounds like a fire sale to me. BUY BUY BUY!
# posted by 
: 4:27 PM
: 4:27 PM 
It works great if you're still making contributions and you have a good fund manager. But if you, oh, say, changed jobs and no longer have a contribution, the losses are deadly.
Yes, you may start tossing dirt on my at any time. I've essentially lost a new car this year.
Yes, you may start tossing dirt on my at any time. I've essentially lost a new car this year.
I say your approach is of greater discipline than most, and the math supports your method.
If you still want the rush of trying to time the market, keep a big bucket in your closet and drop all your pocket change in there at the end of the day (and never pay with exact change so you always get change back).
When the market tanks, buy in at the amount in your bucket, then go deposit all that change to cover it and you're back to zero.
You'll be surprised how well you can do at amassing change. I had to ask for help from the teller-fellas to carry my last one in.
http://www.flickr.com/photos/jeffclick/2548721933/
If you still want the rush of trying to time the market, keep a big bucket in your closet and drop all your pocket change in there at the end of the day (and never pay with exact change so you always get change back).
When the market tanks, buy in at the amount in your bucket, then go deposit all that change to cover it and you're back to zero.
You'll be surprised how well you can do at amassing change. I had to ask for help from the teller-fellas to carry my last one in.
http://www.flickr.com/photos/jeffclick/2548721933/
# posted by : 8:38 PM
: 8:38 PM
OK, SBM, you wanna trade pockets? Thanks for the link to your photo -- looked at the others and got mighty, mighty homesick. I miss seeing your work.
Wow! Now THAT's pocket change. ... I pulled about 2 quarts of coins out of the pocket of my truck door when I parked it in May. Don't know how much is there, but it sure won't approach $1,400!
Oh, and if I find myself unemployed, I'l for dang sure turn that 100-percent stock allocation in my 401(k) into safer investments.
Oh, and if I find myself unemployed, I'l for dang sure turn that 100-percent stock allocation in my 401(k) into safer investments.
You're on the right track, proud of you.
Some things to consider: Are your 401k contributions pre-tax or after tax? There are advantages and disadvantages to both. It seems as though more folks are at least giving some thought to after tax contributions with the advantages of the Roth IRA at rollover time.
Again, both plans have their advantages. You just need to decide what is best for you.
Keep up the good work.... mr bbs
Some things to consider: Are your 401k contributions pre-tax or after tax? There are advantages and disadvantages to both. It seems as though more folks are at least giving some thought to after tax contributions with the advantages of the Roth IRA at rollover time.
Again, both plans have their advantages. You just need to decide what is best for you.
Keep up the good work.... mr bbs
# posted by : 2:55 PM
: 2:55 PM
I prefer the redneck retirement plan: Lottery Tickets. Fortunately, Mrs. Doc has a head for finance, and allocates discretionary funds (read: allowance) for my wallet! Stocks are still the way to go in my opinion- but be sure that your broker is giving due diligence, and mind the fees! Always check for matching funds, but again, be mindful that the portfolio is being well managed. Bottom-line, do your homework.
Reposted for Ryan McNeill, to excise a personal reference that violates ER's strict policy on his own anonymity:
"Yes, I meant bear. Doh.
"I've long contributed to my 401k, both (in Oklahoma) and here at Tribune Co. Difference is, Tribune stopped matching contribs and promised instead some sort of weirdo cash balance plan ... which I figure will never come ...
Luckily, Belo matches ...
"Yes, I meant bear. Doh.
"I've long contributed to my 401k, both (in Oklahoma) and here at Tribune Co. Difference is, Tribune stopped matching contribs and promised instead some sort of weirdo cash balance plan ... which I figure will never come ...
Luckily, Belo matches ...
Staying in stocks is good for the LONG run. 20 years to go is not the long run. Read a good book on the subject then consider diversifying and re-diversifying every 3 t0 5 years.
I had to retire 5 years before schedule (thank God) but ended up losing 25 thousand outright and 65 thousand indirectly in the 99-01 debacle.
If I had shifted systematically along the way my losses would have been much less.
One thing for sure make certain your money is OUT OF THE CONTROL of your company, organization, or agency.
Also remember the rule that the value of money halves every twelve years.
I had to retire 5 years before schedule (thank God) but ended up losing 25 thousand outright and 65 thousand indirectly in the 99-01 debacle.
If I had shifted systematically along the way my losses would have been much less.
One thing for sure make certain your money is OUT OF THE CONTROL of your company, organization, or agency.
Also remember the rule that the value of money halves every twelve years.
Rew, "Staying in stocks is good for the LONG run. 20 years to go is not the long run."
Yeah, but I'm just shy of nine years into a 30-year plan, and a 30-year plan is the long run.
As I said, I'm thinking about it. ...
But: I think that after the election, and after it's decided once and for all whether to war with Iran, and once the housing-credit industry digests this massive new housing law, the stock market is going to take off again another bull run. The markets hates uncertainty more than anything. Once some big things appear to be settled, off we go again. And I'll be glad I was buying cheap.
I think being almost one third through my 30-year horizon is a good time to think.
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Yeah, but I'm just shy of nine years into a 30-year plan, and a 30-year plan is the long run.
As I said, I'm thinking about it. ...
But: I think that after the election, and after it's decided once and for all whether to war with Iran, and once the housing-credit industry digests this massive new housing law, the stock market is going to take off again another bull run. The markets hates uncertainty more than anything. Once some big things appear to be settled, off we go again. And I'll be glad I was buying cheap.
I think being almost one third through my 30-year horizon is a good time to think.
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