Financial People 401K Question

[Capt.Brown]

Buy, buy, buy.
It’s too late to sell.

[ctom87]

You haven't lost 30k unless you have sold it.

[SaintBlaise]

Ride it out now. If you are even considering moving it now, then your portfolio is too risky. Once things come back, trim the aggressive investments and align your expectations with that new risk level. Your money is somewhat locked into the market forever, meaning that when you retire you still have to live off your funds for 20-40 years. You don't want to just go safe at that point. Look at a good balanced fund, great 10-15 year returns.

[ElfEyes]

Don't sell. Now is time to buy more and dollar cost average down

Sent from my Pixel 4a (5G) using Tapatalk

[KactusKiller]

Can't say it much better than the others...

[dirtybay]

Do you have multiple options to invest in? Every 401k I have participated in and currently participate in, give from 5-15 different investment options to apply towards. I moved all my money to cash reserve for now so I don’t take any loses. I will move it all to an aggressive fund once the market turns around. I personally watch and manage my 401k at work.

[WyoBull]

Let it ride and increase your contributions.

Sent from my SM-G965U using Tapatalk

[STGS]

Do you have multiple options to invest in? Every 401k I have participated in and currently participate in, give from 5-15 different investment options to apply towards. I moved all my money to cash reserve for now so I don’t take any loses. I will move it all to an aggressive fund once the market turns around. I personally watch and manage my 401k at work.

Curious about this approach. Are you presently contributing to your 401K? If so, are you buying into mutual funds or simply contributing cash, i.e. money market?

For those of you with a Roth 401K option, you should look into the benefits associated with a Roth 401K vs Traditional 401K. Especially those of you who are not eligible for Roth IRA contributions due to income limits.

[MLank]

Let it ride and increase your contributions.

Sent from my SM-G965U using Tapatalk

Full send!

[12RingKing]

Curious about this approach. Are you presently contributing to your 401K? If so, are you buying into mutual funds or simply contributing cash, i.e. money market?

For those of you with a Roth 401K option, you should look into the benefits associated with a Roth 401K vs Traditional 401K. Especially those of you who are not eligible for Roth IRA contributions due to income limits.

There are sone advantages and disadvantages of Roth 401K investments. Going with a traditional 401k can save sone people a large some of money on taxes for the current year. It’s the time value of money principle. Money now is worth more than money later.

On the flip, the roth 401k contributions are taxed now with no tax on initial deposits or growth upon withdrawal assuming you’re 59.5 years old. You have to be able to do the calculations on your own to determine which route us best for you. For myself, I split mine up 50/50 roughly. DONT FORGET… the federal government could change Roth rules at anytime. You never know if they will try to screw the public.

As far as the Roth IRA, there are income limitations to deposit directly into one, however, there are no income limitations to roll over. Look into the backdoor Roth IRA.

There is also the mega backdoor Roth which I also do. If you’re lucky enough for your company to have a savings plan which allows you to switch over to after tax contributions once you reach the 402g limit, you can roll over all the after tax contributions and growth into your Roth IRA at years end. This helps you save the maximum you can each year and maximize your employer match, IRAs, Health savings plans, etc. to the tune of $61,000 (I could have this number wrong) this year.

[txbowman12]

Curious about this approach. Are you presently contributing to your 401K? If so, are you buying into mutual funds or simply contributing cash, i.e. money market?

For those of you with a Roth 401K option, you should look into the benefits associated with a Roth 401K vs Traditional 401K. Especially those of you who are not eligible for Roth IRA contributions due to income limits.

I go 50/50 on Roth and traditional, just because I want to have some tax free dollars available to me in retirement, but there's a lot to be said for a traditional only approach. If you put 22k away in a pre-tax 401k, that's going to cost you around 17k in post tax dollars. So another way to build up an after tax balance of funds, is contribute 100% pre-tax 401k, then put another 5k in a backdoor roth IRA (you contribute to standard IRA, then roll it to a Roth). Then you have 27k a year going to work for you for the same paycheck impact.

[Rush2Judge]

As others have posted, you have not provided enough info to give you any other advice than to "let it ride" and keep buying.

Personally, I am months away from an early retirement and we have been maxing out our 401k. For my situation, we planned to have at least 3 years of cash and other liquid assets. Inflation sucks but not as bad as having to sell equities and lock in a "loss". In the unlikely event the market tanks and doesn't come back in 3-5 years, we have bigger problems as a county than my 401k. And short of owning enough land to sustain yourself and family, I don't know what else would be of value.

[bbqfan5909]

Buy as much as you can now, early and often!

I have watched my 401K lose about 30K since the downturn of the economy with Covid etc. What is the best thing to do right now? move it somewhere else, freeze it? not sure what to do, but I have been reading it's only going to get worse, so would really like some insight on what others are doing or planning on doing to protect their 401K.

[Dr. Evil]

I've lost $200k+. It will come back.

[RiverRat1]

The markets can stay down for 2-5 years. Go back and look at the last eras of high inflation.

S&P hit 109 in 1968 Took all the way until 1979 to stay above 109. Was as low as 72 in 1970 and 63 in 1974

Inflation is a beast. This is NOT a FED simply print more money to bail out the stock market scenario.
I still say SPY will go under 300 in 2023. But also think it's best more most to hold and buy monthly at this point. Or at least be saving/raising cash to buy bonds soon.