Traditional or ROTH retirement account?

[Menna]

So right now I should just put that extra money in savings getting interest and reinvest it later?

I've lost $631.17 since January 1and the rate of return dropped to -9.24% overnight.

If it wasn't for this thread I wouldn't have even checked.

If you are under 50 it sounds like you were invested in the right things (Equities/Growth Stocks) unfortunitly for the past 3+ months the economy has sucked thus these Growth stocks are growing in the wrong direction.

A future lesson when there is a war or a global problem...Switch all your investments into Bonds or a money market fund until the economy recovers.

Right now I am assuming you are under 40 like majority here...so keep putting your money in the 401k but choose the money market fund that returns 1-2% a year this will stop the bleeding in your portfolio. Then when you feel the economy is going to recover switch back to investing into growth stocks within your 401k. Take the money that you were saving in the money market funds and switch them back to growth stocks...

The hard thing to do is TIME the market when it is recovering...I cant tell you when that is going to happen...Anyone that tries to tell you EXACTLY when that is is either trying to sell you something or can also read your future.

What to do with the money already in your 401K that is down....I would just leave it as the market in the long term always recovers and you will eventually make that money back but thats just me.

 

[invincible1914]

If you are under 50 it sounds like you were invested in the right things (Equities/Growth Stocks) unfortunitly for the past 3+ months the economy has sucked thus these Growth stocks are growing in the wrong direction.

A future lesson when there is a war or a global problem...Switch all your investments into Bonds or a money market fund until the economy recovers.

Right now I am assuming you are under 40 like majority here...so keep putting your money in the 401k but choose the money market fund that returns 1-2% a year this will stop the bleeding in your portfolio. Then when you feel the economy is going to recover switch back to investing into growth stocks within your 401k. Take the money that you were saving in the money market funds and switch them back to growth stocks...

The hard thing to do is TIME the market when it is recovering...I cant tell you when that is going to happen...Anyone that tries to tell you EXACTLY when that is is either trying to sell you something or can also read your future.

What to do with the money already in your 401K that is down....I would just leave it as the market in the long term always recovers and you will eventually make that money back but thats just me.

Thanks man. I stopped putting money in there until I can figure something out, but i still need to figure out what to do with the money already there. I thought money market oils be with a separate account until I read your post.

 

[Menna]

Thanks man. I stopped putting money in there until I can figure something out, but i still need to figure out what to do with the money already there. I thought money market oils be with a separate account until I read your post.

Every 401K should have a bond fund or money market fund for people close to retirement or for people that want to play it safe when the market is down....If they don't have this fund talk to HR....I mean what are 62 year olds going to do with their 1.2 million they earned over 35 years??? lol lose 10% a month...nah they get 1-3% till they retire


Regarding the money already in there...Remember its not a loss until you sell and the market does always eventually recover so maybe just leave it...If you sell to move it only then you actually lost money

 

[mrallgood]

This....you haven't lost a thing...it is all unrealized. The moment you take it out is when you'll realize a loss.

I've had some form of 401k for decades and there are periods when everything tanks...its the overall market. Like someone else said, if you got time...let it ride. And actually this is the time you want to put more into your 401K...buy low...sell high (and right now we are in a low point).