Not to downplay Scott's very good post... Mutual funds found in most 401ks are down now. However, if you are planning for the long term (I'm only 25), then that means it's an excellent to invest as it will go up over the next 35-40 years. Also, every 401k I've seen (which isn't too many) has some sort of low-risk bond or money-market type investment options for those who don't want to loose money in the short term, but want it in their 401k to re- invest in mutual funds when the market turns around.
In the end, to each their own. We're all working towards retirement in some way, and we'll each find our own path there. :-) On Jul 11, 8:43 am, robert <[EMAIL PROTECTED]> wrote: > Thanks for the info Scott! :) > > On Jul 10, 9:39 am, "Scott Hodson" <[EMAIL PROTECTED]> wrote: > > > Try a hedge fund, they (can) make money in up, down or sideways > > markets. The DOW went pretty much sideways in may-mid june and I made > > a 24% 1-month return using an iron condor (option strategy). > > > 401(k)s just buy and hold, mostly mutual funds. Mutual fund managers, > > by law, can't use hedging strategies used by hedge funds (going long > > and short stocks, use of sophisticated options/futures/derivatives > > instruments, etc). However, there are instruments, like ETFs, that > > you can "buy" as a way to short stocks or short indexes without having > > to actually short anything, so you can even hedge your 401(k) > > portfolio if you want to have ETFs in there. Look for "short" or > > "ultrashort" (levereged) ETFs. > > >http://www.proshares.com/funds > > > Add some hedging, plus tax benefits, and if your employee matches, even > > better. > > > As far as taking money out, most 401(k) plans allow you to borrow > > money out of your plan, but you have to pay it back, with interest. > > But guess who you pay interest to: you! (your 401k that is). Many > > money managers advise against borrowing against your 401(k) unless > > you're absolutely sure you can pay it back and won't get buried in > > debt because if you do you fail to pay it back eventually have to pay > > those withdrawal penalties that you're trying to avoid in the first > > place, and there's less money in the fund to grow, potentially hurting > > your long-term gains. > > > On Thu, Jul 10, 2008 at 8:55 AM, robert <[EMAIL PROTECTED]> wrote: > > > > Off topic, 401k's these days ($2 billion in total losses) aren't as > > > attractive for retirement (pulling out early would incur higher costs, > > > up to 40-50%). I'd be curious (i'm not looking for a position with any > > > company) what other options companies are putting together to offset > > > this. --~--~---------~--~----~------------~-------~--~----~ SD Ruby mailing list [email protected] http://groups.google.com/group/sdruby -~----------~----~----~----~------~----~------~--~---
