Is there any place to put 401K money right now?

[AllyCat]

Seriously, I hate these stupid "investments in retirement" through the stock market. I don't have much, but wanted to stop my current contribution and do something with what is sitting in there.

I know, I know, "investment is for the long term". I just don't believe that any more. What to do?

[MercutioATC]

1. Mine's in U.S. Treasuries...and has been for quite a while.

It's not quite keeping up with inflation, but it's not losing money hand over fist.

That said, if you have 8-10 years or more until you're going to need the money, there's a school of thought that would advise leaving it where it is so you can take advantage of the rebound when (if) the markets come back.

[AllyCat]

2. Yeah, I definitely have that kind of time.

Maybe just halt my contribution right now and pay off remaining debt is my best plan. I just don't know, but I'm nervous.

[MercutioATC]

3. It's pre-tax money and it compounds...you might not want to stop your contributions.

I don't know if you get any company matching, but that's a consideration too.

Rather than stop contributions, you may consider (if your plan has multiple investment options) leaving your current balance where it is and directing future contributions to a less volatile fund for a while.

[AllyCat]

7. Okay, what, in general is less volatile?

Pardon my ignorance, but it seems everything in my portfolio is losing...not sure what is considered less volatile right now. Bonds? I have some allocated to that, but not much. I don't think we have the option of US Treasuries, but I will look. Since I was a long term saver when I started this, I went pretty risky. Still, it's hard to watch it lose month after month after month (has been doing this for a year or more).

Thanks for your info.

[MercutioATC]

9. I only have 7 1/2 years till I retire, so I'm kinda conservative at this point.

If the market was allowed to naturally correct, my decidedly INexpert opinion is that the bottom would be between 8500 and 9000. Apparently we're going to have a HUGE government intervention, so all bets are off.

That being the case, since you have plenty of time you might consider leaving the existing balance where it is. Personally, I'd look at directing future contributions into Treasuries, bonds and precious metals until the market reaches what looks like a bottom and then start incrementally allotting the new money back into the market. That's just what I'd do, though...

There IS something to be said for diversity, too...especially if you don't want to constantly keep tabs on your money.

...oh, and don't thank me...I could be completely off-base. Opinions are like bellybuttons, everybody has one. :)

[FirstLight]

4. You got a tin can & a shovel?

...either that, or I'd try First national bank of Serta!

besides, that money may not even be worth the paper it is printed on soon...but hey, toilet paper is always in demand!

[OllieLotte]

5. Don't. Keep contributing and spread it around.

Some in a US Stock Index Fund, some in foreign stocks, some in bonds and some in US treasuries. Now is not the time to sell your stocks. Be diversified. You will be glad that you did. If you own your own home, stay out of REIT, you have enough in real estate. Good luck to you.

[AllyCat]

6. I do have some options with where to put it.

Maybe I need to reallocate it. What's REIT? Sorry, I just don't know.

[A HERETIC I AM]

12. REIT = Real Estate Investment Trust. Not too many 401(K)'s will offer them, however. n/t

[elocs]

8. I have a 401k with a Vanguard bond fund and I lost 1.4%.

I have a Roth IRA that a couple of months ago I moved 80% of it into a Vanguard Treasury Bond Fund and it lost nothing and the rest is in an energy fund which also held pretty steady. I have 10 years to retirement so I want to avoid high risk.

[hoosier_lefty]

10. I'm playing it safe.

massmutual has a "guaranteed" fund that pays 4.75%. I know
it's not much but it's better than -20%.

[Alpharetta]

11. which fund is that?

I might be interested. Don't worry -- I do lots of research before I invest.

Why do you say "guaranteed" in quotes?

[NoUsername]

18. What kind of fund is this?

Is it a 401K or money market fund? And who is is "guaranteed" by? Is it FDIC?

4.75 is a lot better than I'm currently getting on my CDs. I'd be interested in knowing more so I can look into this.

[2Design]

13. check out suzeorman.com -

or try online banking at fnbodirect.com for 3.50 currently on your money and you can take it out too whenever you want

I always find the investing in US treasuries curious because if you don't think the government is doing a good job why would you lend it your money - some say bonds but again that is municipalities (suze likes these) and most cities are going bankrupt too - not really sure what is good and I don't think anyone else knows either - go with safe for now and give yourself some time to decide. I have some in credit union money market which is fdic insured not that they can't go bankrupt too when the government goes bankrupt.

Everyone is guessing - look around

[A HERETIC I AM]

14. Not all bonds are municipals.

I always find the investing in US treasuries curious because if you don't think the government is doing a good job why would you lend it your money - some say bonds but again that is municipalities (suze likes these) and most cities are going bankrupt too

Treasuries are bonds also. When you say "some say bonds but again that is municipalities", you seem to infer that all bonds are muni bonds. That is not the case.

BTW, Would you be surprised to find out that Money Market funds invest in bonds? Because they do. They also buy CD's, Short term Treasuries, short term corporate notes and even long term bonds that they only hold for a very short time and then sell them.

[2Design]

15. sorry did not mean to imply all bonds where munipalities

sometimes my brain moves so fast I leave out parts of my thoughts in writing

I am not an investor - yeats ago when I work for a corp I had their stock and when I left them I took everything out of stock since I didn't like the job they were doing - I am in no position to be investing - so my money is in FDIC insured money market funds with a certain percentage interest - and no I have no idea where they put the money and assume they lend it out to someone else (think george bailey)- so a little idealistic in believing my money might be helping someone do something good for themselves.

I just would never think of investing in Treasuries directly because I don't want to give the government more money for bombs and bullets or waste and that is what I think of Treasuries

I just don't trust corps, government, or any of them so it is hard to know what or where to invest anything - I know I don't want to invest in companies that do harm to the world - it is hard to find any that don't - so I am not one to give advice - I read patrick.net and thehousingbubbleblog.com - unfortunately the later one has way too many republicans on it and many have not had any problem scamming others and then making fun of people who cry victim from their type of shenanigans - but the guy who runs the blog every once in awhile post and their is wisdeom there to gain some insights. The Patrick blog to me has been around longer and his overall outlook is different and not as much into advice other than the main gist of the site.

[A HERETIC I AM]

16. Some links for Socially responsible, sustainable and green investing;

If you desire to invest in companies that are either "green" or do no harm or perhaps find Mutual Funds that screen for such things, here are a couple links to have a look at.

Sustainable Investment.org provides information on individual stocks (companies) as well Mutual Funds whose managers strive to buy only company stocks that fit this criteria. It is not a complete list, however. Their "Funds" list does not include those from the Domini funds family for instance.

Social Invest.org offers research and performance information as well as other resources for the individual interested in this investment sleeve.

The Green Money Journal provides information as well as links to Mutual Fund companies that concentrate in this area.

On Google, use terms like "Socially responsible investing", "Green investing" and "Sustainable Investing" and you will find these and many other resources. Replace the word "investing" with "Mutual Funds" or "Companies" and you will broaden your results considerably.

Hope that helps.

[enuegii]

17. You could emulate

the practices of the convicts of Devil's Island.

I leave it as an exercise for the reader to discover the preferred method.

[melody]

21. Haven't we essentially been doing that the last eight years?

[BeHereNow]

19. We just moved 1/2 to CEF.

I'm also buying hard assets.
As in PMs.

BHN

[BeHereNow]

20. CEF web site, should you care to look it over-

http://www.centralfund.com/

BHN

[earthside]

22. Indeed!

I put a chunk in CEF about five years ago because I knew this was coming ... I've done quite well.

And ... things are going to keep going along this downward trend for a long time -- so CEF may still be a good place to grow some money.