401k Owners !!

[dmccarty]

Talking heads and "experts" say that the stock market is overvalued. Ok. So where do people put their money if they want to invest?

We keep getting told to save for retirement, and we should be saving for retirement among other things, so where do I put the money?

Unless one has enough cash to buy property one is stuck with the stock market or very low return investments. So, if more and more people save money, will not the market be "overvalued" compared to the past?

The current ups and downs in the market don't appear to be a sign of anything other than profit taking. Job less claims are dropping and dropping. People seem to be spending money, the tax cuts should give a boost to the economy, and because of the tax law changes, companies are bringing back cash held overseas that has to be spent, saved, or invested which will help the economy.

I remember the lead up to the 2008 meltdown it was obvious it was about to happen. A coworker and I were discussing pulling our money out of the market before the meltdown. He did and I did not. He saved/made a bit of money as a result. I just rode it out and the paper loses went away after a year. I did sit down one day and guesitmated how much money I could have saved/made if I had pulled out of the market as he did, and we would have a bit more money, but not that much more money in the grand scheme of things.

One of our best investments will likely be buying land but I think that is as risky as the stock market. The tax hit on selling land is going to be a b...tch.

Later,
Dan

 

[Coyote machine]

I get tractor advice on TBN. Money advice I leave to my actual real broker. I have gained over 7 figures in the last year's market, and 6 figures gain in the first three weeks of January. I retired at 45, 20 years ago. The market's increases forced me to rebalance my portfolio because stocks gained so much they created an over 70% position in equities. I most often stay around 60/40% equities to bonds and other investments. I just rebalanced, a couple of weeks ago dumping things like Exxon, which had been owned by my family for eons. After fearless leader claimed all 'his' magic success in restoring the economy in the state of the onion address, the market and Exxon lost 10% the very next day. That particular call to dump some oil related equities was just luck.
I don't claim any expertise in the markets. In fact, other than their earning money for me and my family I don't even follow them beyond being interested in what certain companies/technologies are creating/destroying in the world around us.
I'm the exception, not the rule by any means, but trying to time or guess the market trends is a fool's errand IMHO.
Life is short, then one dies. Enjoy the ride as best one can. 10-30 year historys are great on a timeline but most of us don't live to be 110, or get to live long enough to enjoy what we have for long enough for the amount of time we spend earning what we hopefully then get to spend; and today way to many are too unfortunate to get to stop working until nearly in the ground. Hopefully the crooks in charge will get their just desserts, in orange jumpsuits paid for by the taxpayers; us. JMHO, YMMV.

CM out

 

[Peter 315]

I get tractor advice on TBN. Money advice I leave to my actual real broker. I have gained over 7 figures in the last year's market, and 6 figures gain in the first three weeks of January. I retired at 45, 20 years ago. The market's increases forced me to rebalance my portfolio because stocks gained so much they created an over 70% position in equities. I most often stay around 60/40% equities to bonds and other investments. I just rebalanced, a couple of weeks ago dumping things like Exxon, which had been owned by my family for eons. After fearless leader claimed all 'his' magic success in restoring the economy in the state of the onion address, the market and Exxon lost 10% the very next day. That particular call to dump some oil related equities was just luck.
I don't claim any expertise in the markets. In fact, other than their earning money for me and my family I don't even follow them beyond being interested in what certain companies/technologies are creating/destroying in the world around us.
I'm the exception, not the rule by any means, but trying to time or guess the market trends is a fool's errand IMHO.
Life is short, then one dies. Enjoy the ride as best one can. 10-30 year historys are great on a timeline but most of us don't live to be 110, or get to live long enough to enjoy what we have for long enough for the amount of time we spend earning what we hopefully then get to spend; and today way to many are too unfortunate to get to stop working until nearly in the ground. Hopefully the crooks in charge will get their just desserts, in orange jumpsuits paid for by the taxpayers; us. JMHO, YMMV.

CM out

It takes money to make money, Looks like you did really well for yourself

 

[Coyote machine]

Yes, I've got no complaints, but it does irk the ***** out of me the way the crooks all the way from the top to the bottom of the world today are saying one thing, and robbing the rest of us blind from presidents on down to the local druggies.
I feel helpless to do anything lasting to change the status quo, but nonetheless it still keeps me near tearing my hair out. The other day I heard from my loyal house sitter. She saw a truck drive up my 400' drive and around the entire house and back down the drive. She waved from the front window. It scared her - and worries me cause I'm not able to help her, being far away from home for a long time. I worry that someone might be casing the house/property looking for an opportune time to smash and grab.
If the same people came directly to me- I might be able to offer them work to do on my property, for instance, rather than have to deal with the anguish of being robbed of items that mean something to my family members.
I had a guy working for me years ago. I paid him a good hourly wage. I told him at outset he was responsible for paying owed taxes on his monies. If he did not and I found out about it he would be fired. So I was informed by his former boss the IRS was looking for him for tax evasion. I asked him about it, and found he was not paying his state owed taxes. I fired him on the spot and took his keys. To this day he owes me $200+/- in loans I gave him in advance of his weekly pay.
I feel badly for him; had he put aside the monies owed he would likely still have a job five or more years later....

 

[TNhobbyfarmer]

Retired. Own house and cars. No payments. Buy what I want with cash. Retirement fund grows every year. A correction doesn't concern me. I sleep well every night.

 

[Peter 315]

Yes, I've got no complaints, but it does irk the ***** out of me the way the crooks all the way from the top to the bottom of the world today are saying one thing, and robbing the rest of us blind from presidents on down to the local druggies.
I feel helpless to do anything lasting to change the status quo, but nonetheless it still keeps me near tearing my hair out. The other day I heard from my loyal house sitter. She saw a truck drive up my 400' drive and around the entire house and back down the drive. She waved from the front window. It scared her - and worries me cause I'm not able to help her, being far away from home for a long time. I worry that someone might be casing the house/property looking for an opportune time to smash and grab.
If the same people came directly to me- I might be able to offer them work to do on my property, for instance, rather than have to deal with the anguish of being robbed of items that mean something to my family members.
I had a guy working for me years ago. I paid him a good hourly wage. I told him at outset he was responsible for paying owed taxes on his monies. If he did not and I found out about it he would be fired. So I was informed by his former boss the IRS was looking for him for tax evasion. I asked him about it, and found he was not paying his state owed taxes. I fired him on the spot and took his keys. To this day he owes me $200+/- in loans I gave him in advance of his weekly pay.
I feel badly for him; had he put aside the monies owed he would likely still have a job five or more years later....

You must trust your broker I have Janus twenty now Janus Henderson forty in a 401k but I need to change it:thumbdown: I just don't trust most people with my money

 

[RSKY]

Buy when cheap, sell when high.

Same thing when buying cattle, land, or in the stock market.

I have got to say that I did not expect any correction until later in the year or early next year. If I had I might have moved some from growth funds to value funds.

It will come back eventually.

If it doesn't your money is worthless anyway.

RSKY

 

[RSKY]

This correction does not change the premise of my original post. Get in or increase contributions during a downturn. Your money will gain faster during the recovery.

RSKY

 

[Old Red]

You must trust your broker I have Janus twenty now Janus Henderson forty in a 401k but I need to change it:thumbdown: I just don't trust most people with my money

Have that myself...bought that in 1998 or 1999. I was like 22 or so...mom was trying hard to get me to save and trying real hard to get me to save in a Roth as well as my 401. She actually gave me $2grand to put in that Roth. I put it all in the Janus 20 right before the .com burst. It got all the way down to like 600 dollars. I think today...well, at the end of 2017 it was at 3500.

 

[JRobyn]

A favorite of mine for a very long time has been high-dividend paying super-solid corporations. Even when there's a correction and the share price drops (for a while), those dividends still keep rolling in. My mom started me on this when she bought "Standard Oil of California" (now Chevron) back in the early '50s. I still have hers (inherited).

 

[Rock Crawler]

Looks like half of yesterdays drop was gained back today. Hard to move things in that small amount of time.

Not sure what your looking at, but the dow jones is currently down another 335 points from opening.
INDEXDJX: .DJI - Google Search

 

[NorTracNY]

Talking heads and "experts" say that the stock market is overvalued. Ok. So where do people put their money if they want to invest?

We keep getting told to save for retirement, and we should be saving for retirement among other things, so where do I put the money?

Unless one has enough cash to buy property one is stuck with the stock market or very low return investments. So, if more and more people save money, will not the market be "overvalued" compared to the past?

The current ups and downs in the market don't appear to be a sign of anything other than profit taking. Job less claims are dropping and dropping. People seem to be spending money, the tax cuts should give a boost to the economy, and because of the tax law changes, companies are bringing back cash held overseas that has to be spent, saved, or invested which will help the economy.

I remember the lead up to the 2008 meltdown it was obvious it was about to happen. A coworker and I were discussing pulling our money out of the market before the meltdown. He did and I did not. He saved/made a bit of money as a result. I just rode it out and the paper loses went away after a year. I did sit down one day and guesitmated how much money I could have saved/made if I had pulled out of the market as he did, and we would have a bit more money, but not that much more money in the grand scheme of things.

One of our best investments will likely be buying land but I think that is as risky as the stock market. The tax hit on selling land is going to be a b...tch.

Later,
Dan

Keys from your post... Talking Heads... Yes, those people about as intelligent as most reporters today. They are people just yapping about something. If they can't say the sky is about to fall or is falling, then what else are they going to talk about?

Your coworker got out of the market before the downturn. Good for them. When did they get back in? People cannot time the market. They often sell on emotion and lock in a loss from the peak and buy too late missing a significant upturn.

Have someone print out the historical plot of the DOW over a 2-5yr period. Have them cover up the paper from the right. As they slide the paper from left to right, you mark down where you'd sell and where you'd buy. Just make sure you don't know the historical time period. I've done this before with people that talk about timing the market. They always feel foolish from this exercise.

 

[dmccarty]

...
Your coworker got out of the market before the downturn. Good for them. When did they get back in? People cannot time the market. They often sell on emotion and lock in a loss from the peak and buy too late missing a significant upturn.
...

He got back into the market after the chaos was over. He is pretty rational about the market. Just happened to by talking with another coworker an hour or so ago who was really upset by the market ups and downs that are occurring. :confused3: Wondering if they should sell! :thumbdown: The market ups/downs are just noise at the moment.

Later,
Dan

 

[RSKY]

He got back into the market after the chaos was over. He is pretty rational about the market. Just happened to by talking with another coworker an hour or so ago who was really upset by the market ups and downs that are occurring. :confused3: Wondering if they should sell! :thumbdown: The market ups/downs are just noise at the moment.

Later,
Dan

Kinda hurtful noise.

RSKY

 

[KubotainNH]

Not sure what your looking at, but the dow jones is currently down another 335 points from opening.
INDEXDJX: .DJI - Google Search

I wrote that on Tuesday. It was down Monday, rebounded then went down again. Up a bit today. Interesting week for the market.

Mon- down 1175
Tues - up 567

 

[Rock Crawler]

Ah, I didn't notice that.

 

[kenmac]

well, As someone that went through the down turn of 08 ? and didn't shoot myself. I can make it. I learned from form that down turn and toughened up. The market isn't always going to be good all the time. There will be ups and downs and no one knows when that will happen. Investing in the market isn't for the faint hearted !

 

[RSKY]

well, As someone that went through the down turn of 08 ? and didn't shoot myself. I can make it. I learned from form that down turn and toughened up. The market isn't always going to be good all the time. There will be ups and downs and no one knows when that will happen. Investing in the market isn't for the faint hearted !

True words. I like to look at the long term. The two funds I put my wife's and my oldest's money in have a 12% overall gain since the 1980s. Since that daughter won't retire for 20-30 more years I think she is safe.

RSKY

 

[dmccarty]

Kinda hurtful noise.

RSKY

Only if you listen...

:laughing::laughing::laughing:

Later,
Dan

 

[TNhobbyfarmer]

Market timing is fools gold. Warren Buffett made a million dollar bet with a professional hedge fund manager that a Vanguard S&P index fund would out perform the professionals fund over a ten year period. The professional was so far behind after 8 years he conceded and payed up.

Buffet has made the decision that he will put 90% of his fortune in a S&P index fund for his wife when he dies. Quite a decision considering he has made billions in his own fund. He just understands that the low fees and diversification of an index fund make them almost impossible to beat even by investment professionals. A study has shown that S&P index funds regularly beat 80% of managed funds.

All index funds are not equal. It's all about low fees. Currently the funds with the lowest are Schwab, Fidelity and Vanguard.