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Thread: Boy, that Dow

  1. #31
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    Every 401k I've ever had included statements sent to me every month...
    yea I get occasional communications even from an old (needs to be rolled over in truth) 401k. But with bfs 401k, no communication ever, apparently has no website login or something with a brokerage I know has a web login, tells me there is no choice in investments (uh some choice exists everywhere I have ever worked even when it's not great funds - at least of a stocks fund or bond fund etc.), etc.. Just money is taken from the paycheck and where it goes nobody knows. I nag about it and it may sink in, but I'm not people's mommy.

    Me I can contact benefits, but I have put no money in, it's just whether the potential of using a 401k exists or not which seems to be as obscure as I've ever seen anywhere. Been here a bit over 2 months.
    If you want something to get done, ask a busy person. If you want them to have a nervous breakdown that is.

  2. #32
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    I found out about the 401k, apparently I'm not eligible for it until a period that corresponds to around 6 months of employment and then the option to enroll will magically appear on the website etc.. I guess that's why this was so obscure maybe, to the point I had no idea whether or not there was a 401k. I was always told there was no 401k matching though.
    If you want something to get done, ask a busy person. If you want them to have a nervous breakdown that is.

  3. #33
    Senior Member iris lilies's Avatar
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    Quote Originally Posted by Gardnr View Post
    Dollar cost averaging takes time. People want $ growth to be instant, so they don't even bother to start.
    Exactly.

    I was having a discussion recently with a younger friend probably around 35 years old and she wants to start investing. She said “but I can’t lose any money.” I told her honey you are going to lose money, you’re going to put in $100 today and tomorrow it’ll be worth $97, get used to it.

    But better yet just put in the money every month and don’t look at it don’t pay attention to it except once a year, and then maybe move things around. Or dont.

    To the youngsters here: plunk money into a dollar cost average habit, invest in a couple of Vanguard index funds. Done.

  4. #34
    Senior Member catherine's Avatar
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    Quote Originally Posted by iris lilies View Post
    Exactly.

    I was having a discussion recently with a younger friend probably around 35 years old and she wants to start investing. She said ďbut I canít lose any money.Ē I told her honey you are going to lose money, youíre going to put in $100 today and tomorrow itíll be worth $97, get used to it.

    But better yet just put in the money every month and donít look at it donít pay attention to it except once a year, and then maybe move things around. Or dont.

    To the youngsters here: plunk money into a dollar cost average habit, invest in a couple of Vanguard index funds. Done.
    I tried to tell my kids that. They do their 401k's, but they don't have any savings beyond that. I was thinking of just starting very small sums and contributing regularly to a Vanguard index fund for my grandkids--I'm talking like $25/mo for each grandkid... even that small amount would add up to about $10k each when they're adults. Could get them a used car or closing costs on a house. Just seems like a waste not to do it.
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  5. #35
    Senior Member Simplemind's Avatar
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    Unfortunately I was oblivious to Deferred Comp when I first started with the City. Several lost years later another single co-worker started talking to me about it and I started low. Then I put every raise in there. Then I kept inching it up. When I got married in 2001 I started to max it and then when I became of age I maxed and played catch up. It did very very well. When I retired early at 55 I had more in my Deferred Comp than I did in my government pension. Between my pension and SS that I took last year at 62 I don't know when I will even need to touch it. I was so grateful for that initial conversation and passed on the favor to several other single women who thought they could never afford it. Start low, inch it up.

  6. #36
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    Quote Originally Posted by catherine View Post
    I tried to tell my kids that. They do their 401k's, but they don't have any savings beyond that. I was thinking of just starting very small sums and contributing regularly to a Vanguard index fund for my grandkids--I'm talking like $25/mo for each grandkid... even that small amount would add up to about $10k each when they're adults. Could get them a used car or closing costs on a house. Just seems like a waste not to do it.
    That's what I think, too! I set up an account for each grandchild with 2400 each and put in a hundred dollars at Christmas and birthday. I wanted to do more, but life happened and so I'm okay with the birthday/Christmas schedule. I am hoping they will have enough for a small house downpayment.

    It's extremely fun, too--when their parents were little, I did the same for each child but put it in a mutual fund that concentrated on products children would recognize--I think it was called the Stein Roe Young Investor Fund or something like that, and it taught about investment, too.

    We used that money for college, unfortunately. Will not make that mistake again with the grandchildren.

    But I do buy individual stocks as well as index funds-- Apple, VISA, Target, things they will recognize.

  7. #37
    Senior Member JaneV2.0's Avatar
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    I'm sorry savings accounts have been made passe' by aggressive marketing of equities and purposeful lowering of interest rates. It would be nice to have that as a viable option, at least.

  8. #38
    Senior Member jp1's Avatar
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    Quote Originally Posted by JaneV2.0 View Post
    I'm sorry savings accounts have been made passe' by aggressive marketing of equities and purposeful lowering of interest rates. It would be nice to have that as a viable option, at least.
    Sadly that option is definitely gone and not likely to ever come back.

    I recall reading somewhere that before the great depression hit the standard was that stocks should pay a higher dividend than the interest rate on bonds. The idea being that with bonds you were likely to get back your principal unless the company went bankrupt, whereas with stocks that wasn't at all a guarantee. After WWII a sizable chunk of investors waited for that to be the case, sticking with bonds. Now, almost 75 years later, anyone who took that strategy is still waiting and missed out on a massive boom of increased asset values in equities.

    Personally I've still got 8-12 years before I plan to retire. And I'm lucky to work in a field that currently doesn't have enough qualified people, so I'm unlikely to get pushed out by an ageist employer so I will hopefully be able to work as long as I want. At this point I'm still heavily invested in stocks. Mostly a combination of blue chip stuff I inherited from my father and a couple of index ETF's, but still stocks, nonetheless. As I noted upthread they are doing really well. As time progresses I plan to shift to more conservative investments, but I've accepted the fact that I will never likely have a sure thing like decent interest rates on savings accounts.

  9. #39
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    I was thinking of just starting very small sums and contributing regularly to a Vanguard index fund for my grandkids--I'm talking like $25/mo for each grandkid
    I started that with my grand-twins last January. Auto savings at Ally - only $50 a month ($25 each) - but already it is $500+ and will grow to thousands if we just forget about it.

  10. #40
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    The Dow goes up and the Dow goes down! The Dow drops 20% on a pretty regular basis but recovers eventually. "Eventually" is an important qualifier. The Dow does not fall or rise on an exact schedule. That's why it is important to focus on factors under one's control instead of attempting to outguess the other investors in the markets. No one has a crystal ball. Set reasonable goals based on your likely income and expenses. I have to keep close track of both and have a good sense of what I will go through. I am also a beneficiary of Medicare, the socialist program that few beneficiaries want to get rid of.

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