401ks tanking

That would depend on if you are going to use it right now. When you look at 15 year trends when it comes to the market it will always see an increase. Also, making investment decisions based on fear-mongering from news organizations is never a good thing.

If you don't plan to retire for 10 or more years just leave it alone and don't touch it. Your 401k is one of those things you only review once in a while to see how it is doing. The markets will eventually return and continue their steady climb.

christine40 said:

has anyone decided to remove money from their 401ks
or just going to hold tight & hope it recovers?

I suggested to husband we should take some out so we don't lose it all

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Why would you do that? When the market is down the money you put in the 401K is buying more shares in the fund. It is called dollar cost averaging.

The value may be going down but the amount of shares you have in the fund is not lost.

For example before the coronahysteria, you may have had 3000 shares at $250 a share. Now you have 3000 shares at $100 a share. When you continue to contribute the same amount of money each pay cycle to your 401K or IRA or mutual fund, you are actually buying double the shares you were when the market was up.

This really isn’t financial advice but basic economics.

Some say if you have the money in a fund when it tanks your fund will buy low as well so you will experience the recovery. If you pull out now completely you would have to make sure to reinvest right when the tide starts to turn. I've heard a lot of the sell offs are due to automated ai systems that detect the panic then sell accordingly making the situation worse. The average 401 k investor isn't selling off in a panic.

christine40 said:

has anyone decided to remove money from their 401ks
or just going to hold tight & hope it recovers?

I suggested to husband we should take some out so we don't lose it all

Click to expand...

No, don't take any out because of a dip. A year from now when you hear the word "corona" all you'll think of is beer, because we all will have forgotten about this over-hyped pandemic. If anything, you should be buying more stocks. "When there's blood in the streets" is a great time to buy, as the saying goes.

christine40 said:

has anyone decided to remove money from their 401ks
or just going to hold tight & hope it recovers?

I suggested to husband we should take some out so we don't lose it all

Click to expand...

First, you're not going to lose it all. And what you do lose you'll make back over time.

I moved mine on February 26. I had everything split between two growth funds but moved to two bond funds. So far I've recovered what I initially lost.

christine40 said:

has anyone decided to remove money from their 401ks
or just going to hold tight & hope it recovers?

I suggested to husband we should take some out so we don't lose it all

Click to expand...

Let it ride. But how about shifting some into bond funds within 401k?

HTacianas said:

First, you're not going to lose it all. And what you do lose you'll make back over time.

I moved mine on February 26. I had everything split between two growth funds but moved to two bond funds. So far I've recovered what I initially lost.

Click to expand...

Akita Suggagaki said:

Let it ride. But how about shifting some into bond funds within 401k?

Click to expand...

I invested conservatively in bonds. I am retired, 67 now and glad I did.

Chris V++ said:

Some say if you have the money in a fund when it tanks your fund will buy low as well so you will experience the recovery. If you pull out now completely you would have to make sure to reinvest right when the tide starts to turn. I've heard a lot of the sell offs are due to automated ai systems that detect the panic then sell accordingly making the situation worse. The average 401 k investor isn't selling off in a panic.

Click to expand...

Yes the whole idea of a 401K is to avoid the turbulence and hysteria of the Wall Street speculators.

Now some will put their 401Ks in funds which are more aggressive, but what you say is correct that when the markets go up again you will have more shares bought.

Akita Suggagaki said:

Let it ride. But how about shifting some into bond funds within 401k?

Click to expand...

Good fund managers will do that already.

christine40 said:

thanks for replies

@redleghunter
we didn't opt into paying fund mgr

I'm it!
husband has had me take care of finances since we married
have made some changes over the years

took a long, long time to recover from 2008

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If you are in a 401K which is a mutual fund someone is managing that fund. That is what I meant.

redleghunter said:

Why would you do that? When the market is down the money you put in the 401K is buying more shares in the fund. It is called dollar cost averaging.

The value may be going down but the amount of shares you have in the fund is not lost.

For example before the coronahysteria, you may have had 3000 shares at $250 a share. Now you have 3000 shares at $100 a share. When you continue to contribute the same amount of money each pay cycle to your 401K or IRA or mutual fund, you are actually buying double the shares you were when the market was up.

This really isn’t financial advice but basic economics.

Click to expand...

Nice treatise. But you left one thing out.

Who gains the lion's share in this increased purchasing power gain?

Ricky M said:

Nice treatise. But you left one thing out.

Who gains the lion's share in this increased purchasing power gain?

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Fed.gov. They get to tax it more.

christine40 said:

@redleghunter
but you said fund mgr will shift money in post #10

we're not paying for anyone to personally manage our acct, only I make changes
we could if we wanted to but why waste money as it's too high a %

after 2008, I did move more into bonds and some safer options but the biggest percentage is in stocks

from what I've read lately, moving more into bonds is not the way to go

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You said it was a 401K?

If it is then the 401K is through your employer or through some agency. If not then the alternative is you play the bond and stock market directly.

I know within 401Ks you can move from very conservative to more aggressive options but that is within the fund or funds available.

anyone like technical analysis?
How far can the Dow fall? Here are some key chart points to watch