401K's ......... and drastic measures with finances

stealthycat II · 10-06-2008, 12:28 PM

you still have faith in them or not?

I've always been anti-401K because its a "savings" plan that only works if the stock market is good and if you live long enough

I like my money, in my hands ....... I did put into 401K about 1 year ago and stopped it last week. I also stopped my Employee Stock Purchasing. Thats 15% net income I'm bringing home more per week.

My wife and I switched to a cash only system best we can too. We allot XX amount to everything in envelopes, and already we're seeing a big change in how much money we actually have vs the old way when we used credit cards.

Now, we've never carried credit card debt month to month, we have everything paid for except 75,000 on a 180,000 home. But this cash only thing we're doing changes everything.

I'll invest my own money thank you very much Wall Street - people who bought into the 401K will make my retirement easy are some very very sad people right now I'd imagine

10-06-2008, 12:50 PM

Most 401s give you the option for a money fund or safe investment. Most do it because thier employer matches up to a certain amount. I know your employer used too. But also with your employer, I don't blame you for getting out of the ESPP.

bottom line stealth, you got to be smart.

etothepii · 10-06-2008, 12:53 PM

That's very much like Dave Ramsey's advice, although he would tell you to get back into some Roth IRAs. Especially right now.

My retirement contributions have been the bare minimum for several years now while I pay down debt. We will be able to kick it up a notch in about 9 months. I hope there are still great deals on the market by then.

ipscshooter · 10-06-2008, 01:01 PM

Quote:

ORIGINAL: etothepii

That's very much like Dave Ramsey's advice, although he would tell you to get back into some Roth IRAs. Especially right now.

My retirement contributions have been the bare minimum for several years now while I pay down debt. We will be able to kick it up a notch in about 9 months. I hope there are still great deals on the market by then.

That's about where I'm at. We ran up a rather large debt helping out my wife's mom after she lost everything she had to Hurricane Katrina. We're about 4-6 months from having that paid off, and then we'll only owe for my wife's car, and our house (and we owe less than 10% of the appraised value on that). If we had to, we could simply pay everything off now. But, I like having a decent sized "emergency fund."

I'm continuing to put 5% into the 401k, as my employer matches the first three percent, and 1/2 of the next two percent. So, I get an 80% return on the first 5%, which tends to negate occasional problems like the market is seeing today.

Howler · 10-06-2008, 01:16 PM

Quote:

people who bought into the 401K will make my retirement easy are some very very sad people right now I'd imagine

Depends alot on how close to retirement age that a person is.

What's so "drastic" about what you're doing? I've been a "cash" user all my life. I dohave a credit card and I do use it everynow and then, mostly for mail orders, and only when I can pay for what I purchase when the balance comes due. I'll keep putting6% into my 457 plan, since it gets matched. Buy low, and "hope" to sell high someday way down the road!

My land investments are looking better and better all the time!

badshotbob · 10-06-2008, 01:26 PM

Buy gold and silver (actual, not paper). May be the only way to buy anything in the not so distant future.

oldelkhunter · 10-06-2008, 01:33 PM

I was working for ITT in 1987 when we had the bad market correction. Everyone except me(newbie) got wacked with a 50% market correction. 4 months later it was back to normal. It's actually a good time to be contributing to a 401k right now just leave it alone and don't read the newspapers and watch MSM (they have been talking recession for 2 years already).

HuntingEd · 10-06-2008, 01:51 PM

The only golden answer is to do it all...

I buy land, gold, stocks, and put money into 401k, IRA, and savings...

It takes a long time for it to go anywhere at my pay rate, but its slowly turning into something nice...

We owe on two cars and our house right now... No credit card debt.. Cars are at 0% and 2% interest, so it was a no-brainer to finance them... Oh, and my wife has a little in student loans left..

But we use credit for everthing, I get 3.33% back as a reward, so it makes sense... My wife and I both are very purchase concience and we stay within budgets on our cards...

burniegoeasily · 10-06-2008, 02:11 PM

Im really surprised. I looked at one of my 401ks and it has not taken the shot I thought it would. Not enought to get concerned about. Once the market goes back up, ill regain the losses.

Bob H in NH · 10-06-2008, 03:04 PM

My 401K is down 20ish %, while the match the company puts in ontop of my money ins 33%, so based on just "my" money, I am up still.

If you are close to retirement, move the money into safer or even fixed income funds. Guarantees you don't go down, but the upside will be lower.

Now is the time to be buying, or soon, depending on where you feel bottom is. If you have several years you will make back the money you lost and more.