Woot! Company matching on 401k again. Wait a minute...

[IDemo]

401k's haven't had such a good track record lately. This 60 Minute segment is admittedly a year and a half old, but it leaves me wondering whether the mattress is a better place for my retirement savings.

Money market? CD's? Vegetable seeds and ammo? :shrug:

[Vickers]

1. Depending on how yours is set up, it's hard to lose that first year "gain"

that is the company match.

For instance, where I work they match 50% of the first 8% you put away, so if you put 8% of your pay away you made 50% on that (presuming of course that you are vested, or intend to stay long enough to get vested) right off the bat.

It takes a LOT of months of bad economy to eat that initial gain away.

BTW, I need a new mattress set, so if you can recommend one...

[Uben]

2. Beanie Babies!

Ha! Remember those? Everyone was thinking they were gonna get rich off of beanie babies.

I've made some good money on precious metal ETFs lately. The economic uncertainties have kept silver and gold high.

[IDemo]

4. Yeah, how safe are those?

ETF's, not Beanie Babies.

How are these better than physical possession of precious metals (beside not giving yourself a hernia in moving them)?

[Uben]

15. Well, they've performed good lately...

I'm up 37% for the year on two of them and 70% on the other one I have. I don't know anyone who wouldn't like those returns. I only have about 25% in stocks, 60% in commercial realestate, and the rest in cash holdings.

I was skeptical myself when my financial advisor got me to buy them, but dayum!

As long as gold and silver remain solid, and I think they will given the uncertainty of things, you'll make out okay.

But, I would never advise anyone to take advice from anyone on the internet. Stick with someone who knows the trade.

[Catshrink]

11. Hey, I sold mine at their peak when I bought my house

and raised the down payment. One little bear sold for $400. Amazing, huh?

[justgamma]

3. Our company tried to take away our pension.,

They offered to give us 1 dollar for every 10 we put in. Wheee! We kept our pensions.

[Trekologer]

5. It depends on the funds available to your 401k

My company offers about 30 funds covering a wide spectrum of investments (small cap equities, mid cap, bonds, international) and my account is spread over 12-15 of them. 2008 was pretty rough but now all the funds have recovered. It is important to research what your 401k offers, what the ratings of each investment type are, what composes each, and the historical performance. But as a previous reply said, you can't go wrong with free money. If your 401k offers multiple investment choices, spread your account over several. Over the long run, a diversified 401k will always beat a savings account/CD at a bank and certainly the mattress.

[whistler162]

6. Well since you can usually invest in a money market fund through your

401k plan. Put the contribution and matching in the money market fund.

[B Calm]

7. 401K's are just a way for corporate America to milk and harvest

working people money and to funnel their investment funds internationally. There are cheaper and more plentiful natural resources elsewhere to exploit. With the cheaper labor and younger developing consumer markets outside the US that present more attractive investment opportunities, industry would prefer not to make any further investments into the US and are using your money to screw you over!

[exboyfil]

8. You can invest your 401(k) money in a government

bond fund (U.S. Treasuries). That way you are not funding companies. Granted you don't own the bonds directly, but the bond fund holds just that - bonds.

[B Calm]

9. How many do that? You do want to be diversified don't ya?

[exboyfil]

17. You complained how corporations use the money

Over the long term you are not going to be hurt as much in a bond fund as an equity fund. Your returns will be much less over time than with a balanced fund, but you have two basic choices with your money - corporations (either equity or debt - both are used by corporations to exploit the environment) or government entities. We already "invest" a substantial proportion of our retirement savings in the government in the form of Social Security.

I am in favor of wider access to investment choices for 401(k)s including the direct holding of Treasuries and the ability to invest in ETFs along with all mutual fund classes.

If folks are not taking advantage of the current bond funds, maybe they understand that already a substantial portion of their retirement is already in government instruments in the form of Social Security.

What are your alternatives? Accepting all the promises of the government in the proposals from a couple of years ago (all retirement like accounts in the form of government instruments)? I like having control over my money, and, while corporations do some bad things, governments do as well. Do you want to be left in the position of hoping that government check ends up in your account once a month?

[TBF]

10. Keeping a bit under the mattress (or in the wall - wherever) -

isn't the worst plan these days. Maybe do a bit of both.

[Warren Stupidity]

12. Don't keep it in stocks if your event horizon is under 7 years.

You should have some options that aren't the wall street slot machine.

[Mudoria]

13. Made pretty good money on my 401k the last year

[B Calm]

14. India and China say thank you. . .

[kath]

16. I moved ours into the "inflation-linked bond" option back in 2002, and have been very glad that I

did.

[exboyfil]

18. Good time to have moved

They were trading at 4% over inflation at the time. I got in during the crisis when they were trading at 3.2% over inflation (and trading at the same interest rate as regular Treasuries - a once in a lifetime occurence). I look at the capital appreciation and think, maybe I should sell them before interest rates take off. As a hedge I am in an inverse 20 year bond fund that should go up if interest rates rise.

[lonestarnot]

19. matress or a tin can.