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Should I leave my 401K alone for another quarter?
MSNBC is reporting the Dow closed above 10,000 for the first time since October 2008, but I've been told that 4th quarter fund performance often depends on the holiday retail performance, which is not expected to be all that great. My 401K came back over Q2 and Q3, but I don't want to await too long and lose it again.
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October 15, 2009 06:55 PM
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When it comes to stocks and retirement accounts what is usually said is that stocks in the short term may produce a loss but over the long term you make a relatively large return. However it is actually the opposite, stocks provide short term gains followed by rare but huge losses. For example, the Dow reached 14,000 over a period of several years only to decrease by half in less than one year.
Now when it comes to your question I would advice you to keep investing in the stock market because it seems like the rare but hugely devastating reduction in stock prices has passed. But it is believed by stock traders we won't see 14,000 for a few years, so it will be awhile before you recoup your losses.
With any retirement account it is desirable to diversify your investments in bonds(have various grades of bonds), commodities(gold is favorite among conservative investors), and stocks(mutual funds and individual stocks)
Now when it comes to your question I would advice you to keep investing in the stock market because it seems like the rare but hugely devastating reduction in stock prices has passed. But it is believed by stock traders we won't see 14,000 for a few years, so it will be awhile before you recoup your losses.
With any retirement account it is desirable to diversify your investments in bonds(have various grades of bonds), commodities(gold is favorite among conservative investors), and stocks(mutual funds and individual stocks)
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October 15, 2009 01:43 PM
http://www.google.co.in/#hl=en&source=hp&q=Should+I+leave+my+401K+a... Helpful Answer? (0)
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I'm in my mid to late 20s and I have only been doing the whole 401k thing for ... fund has returned around 6%, but this last quarter saw a return of around 1.2% ... Or should I just leave things the way they are and expect a better net return .... Use your 401k to invest in good mutual funds
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I'm in my mid to late 20s and I have only been doing the whole 401k thing for ... fund has returned around 6%, but this last quarter saw a return of around 1.2% ... Or should I just leave things the way they are and expect a better net return .... Use your 401k to invest in good mutual funds
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