Who Else is in the 401K Blackhole?

**snafu** · 07-31-2014, 07:21 AM

Sorry you've seen a major drop of balance. Have you investigated the cause? Were there fees associated with your latest contributions? Are you assessed fees for maintaining the account? What did you buy? What are your choices? Please understand that equities and bonds move up and down, sometimes it seems more like a rollercoaster. The point is to continue to contribute and allow the magic of compounding and re-invested dividends to build your retirement over 35 years. Yes, there will be dips, even ghastly ones like 2008-09 but we just carry-on. The value per unit today won't matter in 2045.

I presume you made a plan for allocation. If just starting, did you buy a no fee, low MER [Management Expense Ratio] cost Index Fund or possibly Dividend Fund? Once there are sufficient sums you could broaden your holdings based on your view of the economic situation. There are several SA participants who are very knowledgeable if you care to discuss details.

BTW, good on you for making a savings plan and sticking to it!

**Petunia 100** · 07-31-2014, 07:26 AM

That's not a "blackhole", that's normal market movement.

**JulieAlbright** · 07-31-2014, 07:32 AM

I just went in and looked and yeah, our stock funds are down in July. The International Growth fund seems to be the biggest loser this month.

On the year I'm still up about $30,000 though. I really don't track that closely month to month. I just go in and rebalance about twice a year. I just did a major rebalance on all our accounts.

**rennigade** · 07-31-2014, 10:47 AM

Market down...time to throw some more money in!! Actually its a new month tomorrow so I already set up my orders...they take like a day or two. Only purchased $2000 between my roth, and 2 other index funds.

**Joan.of.the.Arch** · 07-31-2014, 11:24 AM

I don't have a 401k, but my IRA is up 2 cents in the last month.

**creditcardfree** · 07-31-2014, 12:56 PM

Originally posted by rennigade View Post

Market down...time to throw some more money in!! Actually its a new month tomorrow so I already set up my orders...they take like a day or two. Only purchased $2000 between my roth, and 2 other index funds.

Agreed. Although we dollar cost average and send in the same amount each month. The stocks are now on sale after today's 2% drop.

The market doesn't just go up, it goes down and can stay flat too. Over the long term, markets rise, thus the reason many people invest their retirement savings vehicle.

If you can't afford a down month or year or years in the market, then you need to get out!

**JulieAlbright** · 07-31-2014, 01:02 PM

I think tomorrow will be a very good day NOT to look at the Mutual Fund balances.

**cardtrick** · 07-31-2014, 02:58 PM

I recently moved to a money market fund after making 8% YTD. It doesnt matter much though. My 401K is only about 10% of my net worth.

**Goldy** · 07-31-2014, 03:50 PM

I have been checking nearly every day for the past little while because I am close to a small milestone and over the past few weeks it is steadily heading the wrong way.

**Joan.of.the.Arch** · 07-31-2014, 05:38 PM

Originally posted by Joan.of.the.Arch View Post

I don't have a 401k, but my IRA is up 2 cents in the last month.

Well, by the end of this day each of those two pennies were gone, vaporized along with many thousands of their little copper friends.

**~bs** · 07-31-2014, 11:58 PM

that's way too short of a timeframe to think you're in a blackhole. Pick some good index funds, and sit back for 30 years.

**moneysma** · 08-20-2014, 05:42 PM

Originally posted by ~bs View Post

that's way too short of a timeframe to think you're in a blackhole. Pick some good index funds, and sit back for 30 years.

Totally agree. If I looked at my investments on a daily basis, I would go crazy. I learned a while ago that with my long term time horizon (20+ years) what happens on a daily basis now will have little, if any, impact on me. Just buy on a regular basis in low cost investments and forget about it.

**Randomsaver** · 10-15-2014, 11:17 AM

After more than 2 months, it's nice to know that there's only a couple of Americans (me and another one who posted here) who are sucked into the 401K blackhole.

Outstanding job Americans!

**Petunia 100** · 10-16-2014, 08:37 AM

Originally posted by Randomsaver View Post

After more than 2 months, it's nice to know that there's only a couple of Americans (me and another one who posted here) who are sucked into the 401K blackhole.

Outstanding job Americans!

After you've been investing for a few decades, a two month period will be nothing but a blip on your radar screen, too.

Who Else is in the 401K Blackhole?