you can look @ it one of 2 ways you can move money into the plans money-market fund or you can continue to buy funds in the plan @ what is now a good deal (I have been buying more of the funds in the plan that have managers with good track records with there funds) my 401-k has dropped about 30,000 this year alone but you have to look @ it as not a loss untill you take out the money which would be a bad thing. This is the time I am  buying more funds @ a great deal  . I have a higher risk taking attitude when it comes to investing so it doesn't bother me, ( buy low sell high though this is really simple most people tend to do the opposite).

we cant really afford to take risk.. I agree that if you know what you are doing this is the time to buy.. we dont know what we are doing.   

Im just afraid nothing is going to be left.. do we just let it ride and hope the market bounces back?

when reviewing your company 401-k make sure most of your money is going into the funds money-market type fund (most all company plans have one they pay around 4.5% as an avg) if you are not much for handling the market swings you may want to put the majority of the money there 50-60% and set up future contributions to have most money in that fund and the rest should be placed spread out in the companies large,mid, and small cap funds with most of the money being in large cap fund and going down from there also have some in your companies bond fund if the company has one. 50-60% money-market 15-20 in large 10-20 in the mid 5-10 in small and if a bond fund is there 10-20. A person should always be in stocks for the growth potential.     just remember that every-ones situation is different and you should do what you can tolerate and not every set-up is right for every-one

 

I guess that $700,000,000,000.00 didn't restore confidence in the banking market!  

GO FIGURE!!!      

So now every Adult in this country is now in debt for several thousand dollars ... AND their stocks are soon gonna be worth squat.  

tiffandrock:  FYI:  Funds are just collections of Stocks (and/or Bonds).  When the stock market takes a trip down the "Porcelain God" ... so does everybody's "safe" funds. (despite what your broker may tell you --- they don't care --- they get paid regardless of what happens to YOUR Funds.  

If you have stocks, bonds, funds, IRAs, 401Ks, Etc, Etc ...  your money is now swimming with unloved goldfish and alligators in the Wall Street sewers.  

The only people who are going to make money is those who sold short last month or the Brokers who will 'buy low' after you dump everything and re-sell it to you after you spend a year going to the local Food Bank.

I was smart and dumped my 401K at the middle of last month ... penalties and interest leave me more than the zero I would have probably ended up with.

Loren

thanks I will look into that.. if we have anything left to invest that is.   

As a further comment:

Most people have the popular misconception that stocks are "real" money.  But they are not.  I guess one should more realistically consider it to be "virtual" or "imaginary" value instrument.  Whether you buy a stock during it's IPO (intial public offering) or buy it later from a brokerage, you are just buying a piece of paper that has NO actual value. 

If you buy 100 shares of stock for $1.00/share you don't have $100.00 anymore.  If the "value" climbs to $50.00/share you DO NOT have $5,000!  If the "value" drops to $0.01/ share you DO NOT have $1.00!  All you have is a peice of paper with an assumed value.  And it's "value" is dependent upon the ability to be redeemed for something of "real" value ... ie: somebody has to buy it!   

When you gave away your nice little C-note you ceased to possess anything of "real" value: you can't take your stock certificate to the A&P and expect to buy bread with it. 

Sorta like gambling at Las Vegas ... you can win or lose ... but if you take that chip out of the casino its actually worth nothing!


Secondly: 

If you buy 500 shares of "Billy-Bob's Fish Gutting Corp." at $50.00 a share: you DON'T own a $25,000 chunk of "Billy-Bob".  If that stock originally sold for $0.10/share from "Billy-Bob" (that's called PAR) you only own $50.00 of slightly used fish guts. 

The only way you make money directly from "Billy-Bob" is if: you get dividends or splits, you sell back your shares at par, "Billy-Bob" buys back some of it's public stock at "market value", the "Billy-Bob" corporation sells his business (which changes the 'PAR' value), or the "J. Dean Corporation" does a buy-out of the shares so they can have a more ready supply of fillers  (which will also change the 'PAR' value).


Thirdly:

The professionals who really make their livelihoods in stocks DON'T buy as a long-term investment.  That has been proven as a stategy that won't make adequite profits.  They "buy low - sell high".  Invest in LoCaps/Pennies and dump them when they turn a certain percentage of profit.  Turn and Burn. 

Yet, it is amazing that they recommend long-term actions to their clients.  Why?? THEY DON'T OWN THE STOCKS! And because they charge you a fee when you buy, charge you a monthly fee, charge you a fee when you sell, and a dozen other fees.  They make their money that way.  Whether you win or lose.

In conclusion:

Watch what happens here.  I am betting that when the DJIA hits the 6,500 "imaginary points" mark: all of a sudden the selling will stop.  A few folks will buy lots and get rich by selling it to Joe Blow who will finally start buying more Fund shares, thinking he's rich until he loses all his "virtual" money once again...




Loren
 

Another aspect about stocks:

MARKET VALUE

What makes your "Billy-Bob Fish Gutting Corp." stock worth the $50.00/share you paid for it?

• During the IPO Billy-Bob looked at the Company he inherited from his Father and says "I need more money to buy a new "DELux Fish Masher" from Ronco!  So I guess I have to go Public".  He looks at the "net worth" of his business and decides the the whole shebang is worth $10,000.00.  He then decides to issue 100,000 shares which he will sell to his buddies down Herb's Tavern.  This establishes the "PAR" value at $0.10 per share.  All his drinking buddies snatch up the Shares like happy hour peanuts!
• The "Billy-Bob Fish Gutting Corp." is now a public Company
• Billy-Bob does good as the new CEO and at the end of the next Fiscal Year the paperwork says the Corporation is now worth a Net of $200,000.00.  Yippee!  But his buddies aren't buying him beer anymore since they think he's cheap,  So He decides everybody better get a dividend of 10 cents.  Having doubled their money everybody buys him beer again.
• The next year the value of the Corporation is up by another $100,000.00, But Billy-Bob now hangs out with the gang up at the Legion Club and doesn't want to shell out money to his old buddies so he "Splits" the stock by telling everbody he need to re-invest the profits to buy bigger "Gut Bins" so everyone will make more in Dividends next year. (The "PAR" value remains the same, but now everybody has twice as many shares)
• And the years pass....and finally the business is big enough to get on the New York Stock Exchange!
• The Corporation now has 'Net Worth' of $1,000,000.00.  So, the 200,000 shares of Stock open for a 'Market Value' of $5.00/share.  All the original 'Share-Holders' sell out and blow the fortune on a fish-fry kegger down at the city park!The Legion clic buys up all the Stock.
• Billy-Bob needs more cash to pay off his bookie.  Issues another 100,000 units at $5.00/share. The Legion Club guys buy it, too!
• 'Stock Analysts' notice the activity, and send out a general 'Buy' recomendation.  Price jumps to $15.00/share on 'Speculation' that something big is happening down there in Bug-Tussle, MS.  Legion Guys sell.  Hold a hosted martini bar on Veteran's Day
• Nothing's really happening, so the price 'Adjusts' back down to just $7.50/share which more realistically reflects the value of the Corporation.
• J. Dean Corp. notices the reduced Stock Price and decides to do a 'Buy Out' of "Billy-Bob's" and add it to their Food Additives Division.  Word leaks out!  Stock Price soars to $50.00/share.  (Inflated Value)  You buy your 500 shares expecting to make a fortune and retire in the Bahamas.
• J. Dean backs out of the deal.  Stock adjusts back to $6.00 per share. (Actual Value)
• 'Futures Analysts' decide the market for Fish Guts is Very Weak.  Brokers issue a 'Sell Order'.  Stock price drops to $0.10/share.
• You commit suicide.  Jump from 2nd story window.
• No buyers will buy from Billy-Bob on worries that he is going to fail.  Throws himself into a vat of rancid 3 week-old fish guts.
• The boys from Herb's buy all the stock @ $.02/share (worth $6.50), go back to a 'Private Corporation', hold a kegger, make a fortune, and retire to the Bahamas.

 

We have lots of bonds. My grandmother gets them for all her grandchildren every birthday and christmas.

i SAW THAT AND WAS JUST SHOCKED THAT THINGS HAVE gotten this bad.

I remember when GM shares were $50. Yes and when will the bailouts even start to make a difference?

well we got our report on the 401k today.. We lost 20%.  not as bad as I feared but worse than I  hoped.