Rate questions?

Its influential on everything. Look at what any of your big wall street "index funds" have in them. Large percentages of "energy" stocks as a safe staple in the blend.

where does a factory workers 401k go every week? Probably into some "balanced" fund then straight into trading positions. And the worker never gets to purchase low to sell high. No, its auto purchased every single week at any share price, even to the peak. Then when it crashes and you unfortunately have to withdraw at a low price to cover a health crisis or live while laid off, you sell at a loss that CANNOT be depreciated against your taxes like a normal business expense.

Right now the hoardes of laid off people who are selling their 401k to live on, are selling it at around 2016 prices. So thats 3 years of contributions that coulda paid down their mortgage, foooofff.. Gone.

401k is only a good investment if you know what youre doing and have lucky timing. I lost my life savings twice before i figured that out. Got land and assets with no payments now. Energy and tech stocks dont ruin me anymore.

Edit- shoot its been 4 yrs. Im living in the past!

 

But you got what you paid for, unlike those selling their retirements cheap right now to stay afloat!

 

The key is don't pull you money out when the stock market drops. If you wait it out. It will come back and you get all your money back ! You get more money over time and the stock market grows. So will you money. Then when we get older and need money can can't afford to up and down of the market. We should start to take the money out if you want. I still have my 401k money. It drop but I'm betting it will come back just liked it did before. I don't need the money right now anyway. I need it to grow even bigger.

 

Don't look at the balance either! That's what will make you want to pull it out. I lost 25% of mine a couple weeks ago. I was a fool for looking. I won't need it for 20 years.

 

Soon as the handful of frac's around me are finished they're packing it in for a while. Can't believe they've held on this long.

 

Yeah just tell cancer to wait. Or maybe family funeral expenses or a divorce or sick child. Bad market right now, sorry youve got to wait.


We dont have the control we think we do. I dont want a chance at gaining back what i lost. I want zero chance of it ever being diminished.

Before LBJ cash in a can did that just fine.

 

Then don’t have a 401k or investments. Have a savings and forego the possibility or large gains. You can’t have your cake and eat it too.

 

You cant have the possibilty of large gains without the risk of large losses.

Im frugal and dont need either.

 

Like others said you take a risk and you can get a great benefit. I think people don't talk about compound interest enough. Someone in their 20s can put a small amount into Roth IRA every week and be a millionaire at retirement. It that last 10-15 years that really add the money. Pulling the money out for cancer or funeral is something to avoid, if possible because it will mess up the compound interest. We lose that advantage if we take the money out. They say the rule of 72 is needed up. Basically our money will double every 72 months. We get 80k in their it will double to 160K in 72 months then to 320k in another 72 months then to 640k in another 72 months. I left my 401k money in the stock market, it did take a hit but I think it will come back.