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BigFatBEAR (99.27)

Overbought, 401k, and WHERE THE WILD THINGS ARE!!!

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9

May 04, 2009 – Comments (6) | RELATED TICKERS: BWLD , THG , R

Today's random blog is brought to you in 3 parts.

Part 1: There's no denying it, this market is overbought. I'm not jumping in front of the bulls with much money right now, but I know I probably should be. When the market hit 666 in early March, Alstry was in the top 10. Now that he's been replaced by Ultralong...    well, you can add up the indicators yourself.

Part 2: I finally got my 401k! Now I get to contribute a large chunk of my measily paycheck and pray to the gods of compound interest. :)  Oh, and due to the recession, my company may or may not do any matching, so I guess I can pray to the gods of 401k matching as well.

Part 3: By far the most important piece of news - they're making a film for Where The Wild Things Are!!!!

...I approve, as a child of the 80s, and a lover of The Arcade Fire (whose song is featured).

6 Comments – Post Your Own

#1) On May 04, 2009 at 7:42 PM, briyan (26.32) wrote:

If you get no company match, why put any money into a 401k?  Do you really think that money is still going to be around and available when you are 60 years old?  Would you be willing to bet all that money that the irresponsible government spenders will NOT find a way to confiscate or at least greatly erode the value of your retirement account within the next several decades?

Why not take it and invest it yourself outside of the 401k program if you're not getting a match? Or, as I would recommend, pay down your debt with that money?

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#2) On May 04, 2009 at 7:48 PM, BigFatBEAR (99.27) wrote:

briyan

Howdy! Thanks for commenting.

I currently live cash-flow positive and debt-free, thanks to my own decisions, and to the help of my family.

I seriously doubt the government will reach into my 401k. If they do, I show up at Washington with a pitchfork. It's that simple. Government should be afraid of its populace, and not vice versa.

If and when my employment is terminated from my current employer, I'll rollover my balance into my new 401k, my IRA, or leave it invested and growing.

I MAY still get a match, but it's at "discretion" of company year-end. We shall see.

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#3) On May 05, 2009 at 7:47 PM, briyan (26.32) wrote:

Glad to hear you are on the debt-free train, I am working toward that goal myself; five or six more years of early mortgage payments and I'll be there!

With that in mind, I guess the argument for paying down debt is not as compelling (nonexistent, in fact) but my bet is that by the time you want that money, you'll be taxed more than you are today, thus defeating the one theoretical advantage of a 401k.

I can't agree fully that the government would not raid 401k accounts but I hope you are right.  Given the propensity of the govt to collect from those who "have" in order to help those who "have not" ... I would not be surprised if they figure out a way to gut you and other conservative savers in the name of the greater good.

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#4) On May 05, 2009 at 7:50 PM, briyan (26.32) wrote:

I meant to add one more thing... how much flexibility does your employer's 401k plan offer in terms of investing options?  If it's anything other than a fully self-directed plan, that's another vote for skipping the plan and just investing it on your own.  In most cases you are left to choose between an array of mediocre-to-bad mutual funds with high expenses ... guaranteed to underperform.

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#5) On May 13, 2009 at 12:31 PM, goldminingXpert (99.98) wrote:

Don't stick around too long on your BIG red thumb. Big Lots is a winner in these hard times. That said, nice timing on your pick.

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#6) On May 28, 2009 at 3:24 PM, Mary953 (23.42) wrote:

How could I have missed this post!  I used to read Where the Wild Things Are to all my kids - home, school, library - We could make a GREAT Wild Ruckus!!!  It's time to get a Wild Thing for Claire.  Thanks BFB.

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