Tuesday, July 21, 2009

Check your 401K statement

Last night my wife tossed me the dreaded 401K statement. I was expecting another catastrophe, but instead was pleasantly surprised to see my statement was up 17% over the last quarter. This got me thinking: for those of you who pulled out into cash, when are you getting back in? Now? Three months from now? A year?

The problem with pulling out is you never know when to dive back in. I just stay in and sweat it out.

5 comments:

Chris said...

G

Chris said...

Agreed that it's tough to know when to get back in. But if you start at $100 and lose 40% you need 67% in returns to break even. I was lucky enough to get out at the top so I've got about $102 right now. I doubt I'll get in at the bottom and probably already missed it. Yet I still think I'll have plenty of chances to get in at lower levels than the current ones. I still don't think the market has priced in the proloned unemployment we're going to experience.

Chris said...

And would agree it's better to ride it out if you suddenly find yourself at $75. That's what happened to most people and that's a terrible time to move to cash.

David said...

Mac,

I think your right. The oracle of Omaha says doesn't try and time the market, so neither should Joe Smoe.

Mac Noland said...

Chris, I'm glad you commented. I was thinking of you when I wrote this.