Continue to Invest?

[mhall]

With the Dow now at or near 6700 I have more DOUBLED my 401k contributions. A month before the September crash I withdrew my entire 401k and invested in an extremely undervalued home, so I was lucky to have pulled out before the carnage started. This is a perfect opportunity to get in while things are CHEEP!!! The current state of the market is nothing more than a psychological reaction to Obama economic policies, and while he may continue to bumble through his term, there isn’t much farther the markets can drop. This is a huge opportunity to make some big dollars by investing. We are at or near the bottom.

OH you sound convincing, but I'm not sold brother, heard this song before.

[Bobby Headrick]

Now the senate wants to pass a bill that gives get this' Illegal's social securtity disability benifits. We got a petition today and it was passed on to DC, You need to contact your reps and senators quick to let thenm know that is is bad.

[Devils Horse]

With the Dow now at or near 6700 I have more DOUBLED my 401k contributions. A month before the September crash I withdrew my entire 401k and invested in an extremely undervalued home, so I was lucky to have pulled out before the carnage started. This is a perfect opportunity to get in while things are CHEEP!!! The current state of the market is nothing more than a psychological reaction to Obama economic policies, and while he may continue to bumble through his term, there isn’t much farther the markets can drop. This is a huge opportunity to make some big dollars by investing. We are at or near the bottom.

Everyone has their opinion, but I believe it to be much more than just an emotional reaction. There are a variety of factors, the biggest being credit. Too much available credit in the past is just as responsible for our problems as the lack of it now.

Things are terribly overpriced, and I believe they've gotten gotten that way because it has been so easy to borrow money. People've been willing to make monthly payments on huge debts, and prices have gotten stupid because of it. For example, the sticker on a new Chevy Z71 4 door pickup is $54,000+. The wheels'd rot off that thing before I'd pay anything close to that, because it just plain ain't worth it.

I also disagree we're at or near the bottom, there's plenty of room for the markets to drop. I fervently hope I'm wrong, the market is up some today. But we've got a nasty unemployment figure waiting to be announced Friday, and that usually doesn't do the market any good. I figger the federal government will have committed to borrowing and spending a few hundred billion more dollars by Friday as well.

If you're bold enough to buy in big right now, I admire your guts.

[Devils Horse]

You know the thing that makes it tough for me is that if I stop the monthly draw I lose the matching funds from the company. Of course I could get it figured to the penny and only draw that amount out to qualify for the match. I guess I have some pondering to do.....

Do what I did Don, keep the draw for the match and tax breaks but put it in stable growth funds. I put mine 50/50 in 2 funds that have not made much over the last year, but they haven't lost any either. Soon as I honestly believe the market is turning I'll jump back in, but for now the sucking chest wound needs a field dressing.

[DJD]

Do what I did Don, keep the draw for the match and tax breaks but put it in stable growth funds. I put mine 50/50 in 2 funds that have not made much over the last year, but they haven't lost any either. Soon as I honestly believe the market is turning I'll jump back in, but for now the sucking chest wound needs a field dressing.

I am getting our investment guy to come here and review our plan. Funny how he doesn't come around that much anymore?

[philipj]

It is vey necessary to write and call your US Senators and the Representative. Make sure they know you oppose extending social security to Illegals, who are now called undocumented. Right, they came here illegally, worked, and now we are going to give them a retirement back in Mexico, Peru,.......

[DJD]

I'm creating a folder for all the letters I get back from these guys. Don't know if it helps but I'm gonna keep them going!

[Devils Horse]

I am getting our investment guy to come here and review our plan. Funny how he doesn't come around that much anymore?

Share his advice with us if you don't mind. I don't trust advice that much right now, because nobody's got any experience like this.

I'm going to guess what your guy winds up recommending:

Keep a diverse blend of funds and ride it out.

[GeoFisher]

With the Dow now at or near 6700 I have more DOUBLED my 401k contributions. A month before the September crash I withdrew my entire 401k and invested in an extremely undervalued home, so I was lucky to have pulled out before the carnage started. This is a perfect opportunity to get in while things are CHEEP!!! The current state of the market is nothing more than a psychological reaction to Obama economic policies, and while he may continue to bumble through his term, there isn’t much farther the markets can drop. This is a huge opportunity to make some big dollars by investing. We are at or near the bottom.

So..........How did you pull out your entire 401K and plop it into an extremely undervalued home........I thought there were some serious ramifications to doing this, including paying penalties (10%) usually, and Taxes (20%). So a 30% loss immediately is probably not a good deal.

Now, I might be totally off base with these numbers, and you might not get the tax hit until you pay gains on the house, but even then, if you don't appreciate 30% in 4-5 years, I think that was a poor decision.

Later,

Geo

[Stonewall2002]

I had no penalties because I withdrew the money to put a down payment on a home, just some small processing fees. I have to pay it back to myself, with interest over a period of time, which is good, because all of the money I put in now will be purchasing undervalued stocks, mutual funds, etc. This is allowed for the purchase of a home, college tuition, and a few other circumstances. I bought the home for 25% less than what it appraised for at the time of purchase, so I think I did OK.

[GeoFisher]

I had no penalties because I withdrew the money to put a down payment on a home, just some small processing fees. I have to pay it back to myself, with interest over a period of time, which is good, because all of the money I put in now will be purchasing undervalued stocks, mutual funds, etc. This is allowed for the purchase of a home, college tuition, and a few other circumstances. I bought the home for 25% less than what it appraised for at the time of purchase, so I think I did OK.

OK.............not a withdrawal, or cancellation......a loan against the 401K. THAT is much better, and I've used that to purchase 2 cars and a BOAT

THE money you pay in interest (in my case 12%) is actually the only thing keeping that part of my 401K from tanking. I have 2 loans out on my 401K, which amount to about 50K. Those are over 10 years......and I DELIBERATELY set the rate at 12%, so I get a 12 percent return over those 10 years on the principal...........

Later,

Geo

[mhall]

OK.............not a withdrawal, or cancellation......a loan against the 401K. THAT is much better, and I've used that to purchase 2 cars and a BOAT

THE money you pay in interest (in my case 10%) is actually the only thing keeping that part of my 401K from tanking. I have 2 loans out on my 401K, which amount to about 50K. Those are over 10 years......and I DELIBERATELY set the rate at 12%, so I get a 12 percent return over those 10 years on the principal...........

Later,

Geo

Had no idea, is that even legal ??????