Unfortunately, stupidity and ignorance go hand-in-hand. Had Kathy read anything about the stock market investing, she would realize that NOW is the time to buy into the market because the long-term trend is up. Since 401k money is not to be used for 30 - 40 years, there is plenty of time for her investments to appreciate. While her friends are fleeing the market and putting the money into their savings accounts with 3% interest rates, she can feel smug that in the LONG-TERM, she will make more money. As the saying goes: Good things come to those who wait.
JimmyDaGeek
of MD
@
May 23, 2008 12:46:15 PM
Stick with the stock purchase plan
During the last recession, TIAA-CREF lost more than I and my employer combined contributed to my 403b, quarter after quarter after endless quarter. It was very depressing.
However, remember that when stocks are down, new contributions are buying shares at deflated prices. That means you win when the market improves, because you've had the opportunity to buy lots more shares than you could in a bull market. After things turned around, the value of the TIAA-CREF holdings went way, way up.
I did reallocate a little. At the outset, the fund held 40% bonds and 60% stocks. I shifted some of the money from stocks into an REIT--this was before the real estate boom--and so that ultimately made quite a bit. The REIT made money while stocks were down, actually. Of course, it went to the sub-basement when the bubble burst. LOL! Easy come, easy go. I didn't bet the entire farm on real estate, thank goodness. Stay diversified and stay the course.
Funny about Money
of AZ
@
May 23, 2008 12:24:23 PM
Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.
zelakuod cpvo of AL @ Jun 17, 2008 05:52:02 AM
greos tfjhxemgq of AL @ Jun 17, 2008 05:50:31 AM
hgscf isgxlyzfn of AL @ Jun 17, 2008 05:50:12 AM
JimmyDaGeek of MD @ May 23, 2008 12:46:15 PM
Funny about Money of AZ @ May 23, 2008 12:24:23 PM
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