So.... should we still be saving for retirement?

[TwixVoy]

With the market the way it is should we still be saving for retirement in 401ks/iras that are invested in stocks or mutual funds? Has anyone stopped putting money in to these funds right now?

[BlooInBloo]

1. Of course you should.

[CoffeeCat]

2. We have stopped putting funds in the stock market...

We are hoarding cash.

We have a stash at home right now. These are monies that would have gone into long-term
investments or in short-term CDs (1 year or less).

There's just too much volatility. We're not necessarily done with investing in the stock market,
but for now we feel that it's more important to shore up liquid cash reserves, and that little
stash at home, under the mattress.

Edited to add: You can save for retirement and not put your money in the stock market. That's
what we're doing. We're still "saving for retirement." However, in my opinion, a diversified
portfolio now means--that you have some cash on hand that is not in the system, and a lot of
easily accessible money. Yes, the interest rates are abysmal on savings accounts--but it's better
than losing your shirt. In today's economy, you really have to plan for a total meltdown.

[Uben]

4. I'd like to give you some advice

Where do you live, what is your address, and which mattress is the money under?


LOL

[CoffeeCat]

8. LOL...

...point taken. :)

[Liberal_in_LA]

17. lol. n/t

[galileoreloaded]

3. Well, lets see. If you dollar cost averaged monthly for the last ten years,

buying an S&P 500 fund, you would be down -10%+. What do you think???

[buzzard]

5. This is an interesting view of how markets performed in 10 year increments. It might help you decide

http://advico.ca/media/uploads/AGF_Market_Insight-What_does_history_tell_us.pdf

[speedoo]

6. Unless you are about to retire, now is the BEST time to do this.

Why? Because you are basically buying shares at lower prices and eventually the economy and these shares will recover.

The concept is buy low, sell high. Also referred to as dollar cost averaging.

[CoffeeCat]

10. That is good advice, but only...

...if this is the bottom.

I can't imagine that it is.

Main Street is teetering on a cliff and the bubble is about to pop.

The bottom may not be along way off--as far as time frame goes. However,
where we're at right now nowhere near the bottom.

[speedoo]

11. No one can call the bottom, or the top.

Attempting to market time is completely fruitless.

[onethatcares]

7. retire? what's that?

be ready to work til you drop, your spouse will get three days off (unpaid) to bury you. That's about all the retirement available at this time for the working man/woman.:hide:

[Phred42]

9. Unless you are a millionaire you will never be able to retire

Face it

[halfstep]

12. BUY GOLD!!!!

and any other "hard assets" (food, supplies etc) which will minimize exposure to inflation..i have absolutely no confidence in putting my money in ANYTHING controlled by the powers that be these days....if things start to mellow out in a year or 2 than maybe using the "old school" ideas would then become prudent again...in my opinion I am way to scared these days...buy gold!!

[htuttle]

13. "Should you?" I think that for most people the issue is, "Can you?"

[backwoodsbob]

14. my 401 made 1% this quarter

of course I saw this coming and got out of stocks 6 months ago

[AlCzervik]

15. still buying more of the stock we already have because it's down, also moved

cash from a "Cash maximizer" at BOFA to a high yield cd.

you need to do what is right for you.

[leftofthedial]

16. saving what? and what makes you think anyone will ever be able to retire again?

I mean other than the few hundred parasites at the top who own us now.

[Nay]

18. When the Bank of Scotland issued its dire warnings in June, we got our 401K money

out of the stock market and put that money into a fixed income fund that pays about 5%. I am still contributing 25% of my paycheck to that 401K and Mr Nay is still putting in 15% in his, but we are both considering backing off to the 6% matching and putting that cash into the safe at home for a year or so. By taking our money out 3 months ago, we preserved a lot of our capital. We lost some capital last year, of course, when all this started to hit, but for the next 2 years it's gonna be a whole lot worse than last year.

There are a couple of reasons to be in a heavy cash position for the next couple of years.

First, as posters above have said, disruptions in banking and retail may make it hard for you to use an ATM, credit card, checks. Cash will always be good, and you should plan on having to use it for a couple of weeks at a time. That means having plenty of cash in a safe at home, AND having cash in your checking account.

Second, in the next couple of years ppl flush with cash will be able to buy any damn thing they want at a deep discount. Now, that doesn't mean you should go on a crazy spending spree, but as an example: my car is 16 years old. It is working great, but if I see an unbeatable deal on a hybrid in the next couple of years, I will be in a position to buy. Same goes for people who need houses, business property, rentals, or even fridges and stoves and roofs. Cash will be king, and businesses and individual sellers will be desperate for your money. Services especially will be ready to deal--so if you want painting done, landscaping, etc., there will be great deals coming your way.

[upi402]

19. I have 100% foreign stocks now. US banks are ok for a minute

But after the election all bets are off. I am paying bills with my bank and ready to bail on it. It is one offering to buy another, btw. Investment banks are still generally risky, I think, but commercial are ok.

I have some gold and some cash hidden away, not much. There is an automatic retirement deduction for me so I'm stuck, but if the "Dems" get the Whitehouse we will see if they protect us, or continue to protect and defend the corporations right to exploit us and our contributions... taxes and all.

[roody]

20. I am going for a water catchment system,

and only annuities and the credit union.