Anyone elses 401K get hammered today?

[LearLove]

First time I ever lost 1500 in one day. On top of it I have to contend with the suck a$$ funds US Airways selects for us. There is like 40% overlap in everything, large and small cap. I gotta stop lookin at that stuff.

I'm thinking of going from my current contribution of 15% to 6% (6 is the min to get the max company match). Then taking the remaining 7% after taxes and putting it into a Roth. This way I still get max "free" 401K money, limit myself to U's crappy 401K fund selections and with the Roth have better control of where my remaining 7% (after taxes) goes. What do you guys think?

 

[Corona]

First time I ever lost 1500 in one day. On top of it I have to contend with the suck a$$ funds US Airways selects for us. There is like 40% overlap in everything, large and small cap. I gotta stop lookin at that stuff.

I'm thinking of going from my current contribution of 15% to 6% (6 is the min to get the max company match). Then taking the remaining 7% after taxes and putting it into a Roth. This way I still get max "free" 401K money, limit myself to U's crappy 401K fund selections and with the Roth have better control of where my remaining 7% (after taxes) goes. What do you guys think?

You didn't lose any money, unless you cash in the account. How is the annual return w/Airways plan? Above inflation? I'd stick with it, if yes.

Roth's are great; as long as idiot Congress doesn't change the laws on them (they might). I'm going to open a brokerage account with my latest Roth and, among other things, buy an index fund. Again, got to look at the long term. This latest stock drop is just a small bump in a long road.

C

 

[User546]

First time I ever lost 1500 in one day.

Try writing a $36,800 check to the IRS, and a $12,400 check to the state!

I'd give me left nut to only lose $1,500! But yea I'm with you, everything's been taking a dump lately!

Good thing about 401K's though is that your in it for the long run, so it'll eventually bounce back, and you'll be back on an even keel. Most people drive themselves crazy when they watch that stuff constantly, and realize how much it really fluctuates! Just fo'get about it...

 

[Kream926]

Try writing a $36,800 check to the IRS, and a $12,400 check to the state!

you owed 52 grand in taxes???????

how did that happen?

 

[User546]

you owed 52 grand in taxes???????

how did that happen?

I guess the part-time instrutor gig is really starting to work out for me!

Nothing I hate worse in this world then paying taxes... and don't even get me started about that!

And pssst, by the way it was $49,200 and not $52,000. But at this point, does $2,800 difference REALLY matter?

 

[wrigley23]

I guess the part-time instrutor gig is really starting to work out for me!

Nothing I hate worse in this world then paying taxes... and don't even get me started about that!

And pssst, by the way it was $49,200 and not $52,000. But at this point, does $2,800 difference REALLY matter?

Help us all find clue. What is your day job where you owe 49K? Most us are happy to see that as a gross salary! Doh!

 

[FN FAL]

Help us all find clue. What is your day job where you owe 49K? Most us are happy to see that as a gross salary! Doh!

Hahaha...what's the point. By the time we're going to retire 15-20 years from now, the best that we can hope for is to run down the street buck nekid with a 12 guage to cap a child molester so that we can get the state to pay for our 'retirement' plan, hoping we don't get the death penalty.

 

[User546]

Help us all find clue. What is your day job where you owe 49K? Most us are happy to see that as a gross salary! Doh!

Who said I had a day job?

Unless I'm out flying on a trip, I typically sit on my a$$ at home three or four days a week and don't do a whole lot (how do you think I manage to be on FlightInfo so much?!) What hurt me with taxes this year especially was my real estate.

And FN_FAL, you totally disturb me with your delightfully comical insight! I can just see it now!!

Although I have to say, when it comes to paying taxes, somedays I'm just about a six-pack shy of getting up on a water tower in towns square with my AK-47 and.... well, you know where that's going! (Am I allowed to joke about this kind of stuff anymore??)

 

[Big Duke Six]

Yes, minimum contribution to the 401k and the balance to a Roth is a good idea. I just did the same thing myself. Actually, I was putting 15% in to my 401, but I cut it to 5% for a few months to let me finish off a few credit cards first, then I'll bump my 401 back up to 10% (max company matching) and start a Roth with the other 5%. They match annually, so as long as I end the year with a 10% total contribution I'll still get it. It's a heck of a deal. I need to start looking for a Roth though...

 

[westwind]

Yes, minimum contribution to the 401k and the balance to a Roth is a good idea. I just did the same thing myself. Actually, I was putting 15% in to my 401, but I cut it to 5% for a few months to let me finish off a few credit cards first, then I'll bump my 401 back up to 10% (max company matching) and start a Roth with the other 5%. They match annually, so as long as I end the year with a 10% total contribution I'll still get it. It's a heck of a deal. I need to start looking for a Roth though...

Just throwing out a few ideas... Big Duke Six's suggestion of getting rid of the credit card debt (if any) should take precedence. The Roth IRA is a great idea. Just be prepared for the higher (current) taxes you will have with the change. Hiding the money from taxes later means paying taxes on the money now. Still a good deal though.
For those of you guys that get a 401K and change jobs, DO NOT just roll the previous 401K money into your new employers plan. Sure, its easy and the new company might have a great plan, but put the money into an IRA (Roth or regular) and have total control of your previous hard earned money. If you go with a good, inexpensive company like Vanguard it may even save you some administrative fees, if any. It's your money. You gotta fight like heck to keep as much as possible from the wolves out there.

 

[Gulfstream 200]

First time I ever lost 1500 in one day. On top of it I have to contend with the suck a$$ funds US Airways selects for us. There is like 40% overlap in everything, large and small cap. I gotta stop lookin at that stuff.

I'm thinking of going from my current contribution of 15% to 6% (6 is the min to get the max company match). Then taking the remaining 7% after taxes and putting it into a Roth. This way I still get max "free" 401K money, limit myself to U's crappy 401K fund selections and with the Roth have better control of where my remaining 7% (after taxes) goes. What do you guys think?

well, since you wont use that money for 30 more years, why are you upset?

Just keep on contributing, IRA and 401k.

Dont be upset, be happy it goes down - you are continuosly buying - just now you are buying lower. this is good.

EVERYONES 401k has shown "losses" since the mid/late 90's. Who cares, just time your exit at a peak when you get old!! - and my guess is thats a long way off.

The only people screwed right now are the 65yr olds who see the loss.

 

[Swaayze]

Absolutely on the Roth. First $ goes up to matching % in 401k, then max Roth, then back to 401k. Roths are extremely versatile and you can get to your contributions if necessary. I have a decent amount in a Roth that also doubles as a secondary emergency fund (tax and penalty free contribution/conversion withdrawls).

 

[satpak77]

Dont be upset, be happy it goes down - you are continuosly buying - just now you are buying lower. this is good.

dude when market crashes you move out of stocks and into Treasury Bills or Money Market funds

you dont "buy lower" because "it will come back"

we learned that in Enron

When it departed 90 and went to 45, it was "cheap", "half-off", "buy more", then it went to .05 cents and got delisted

BUY MORE, its cheap

 

[coolyokeluke]

My mutual funds still haven't caught up (though it's getting close) to where they were in 1999 when I put money into them from my non-aviation real job/real income. I guess I still have the same number of shares. I'm gonna work till I'm dead (not by choice) so I try not to worry about it.

 

[UnAnswerd]

When I retire I'll be going straight to the funeral home. If I get too old and too crippled to work before I die, then it's time to eat a bullet. Yes it's sad, but what is one to do....