Comments on: Five Things to Tell Your 401k Participants in This Down Economy http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/ Know More HR. Thu, 11 Mar 2010 17:06:41 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Mitch22 http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-45953 Mitch22 Sat, 31 Jan 2009 21:45:08 +0000 http://www.knowhr.com/blog/?p=1007#comment-45953 Thanks. Very encouraging words. It’s tough to stay even keel in this market.<a href = "http://mutualfundsforyounginvestors.info" rel="nofollow">Mutual Funds for Young Investors</a> Thanks. Very encouraging words. It’s tough to stay even keel in this market.Mutual Funds for Young Investors

]]> By: HRM Today - Blog Archive » 25 Ideas for Employees and Employers in the Financial Crisis http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4052 HRM Today - Blog Archive » 25 Ideas for Employees and Employers in the Financial Crisis Fri, 17 Oct 2008 16:00:08 +0000 http://www.knowhr.com/blog/?p=1007#comment-4052 [...] Talk to your employees about their 401k (KnowHR) [...] [...] Talk to your employees about their 401k (KnowHR) [...]

]]> By: 25 Ideas for Employees and Employers in the Financial Crisis | YourHRGuy.com http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4046 25 Ideas for Employees and Employers in the Financial Crisis | YourHRGuy.com Thu, 16 Oct 2008 13:06:12 +0000 http://www.knowhr.com/blog/?p=1007#comment-4046 [...] Talk to your employees about their 401k (KnowHR) [...] [...] Talk to your employees about their 401k (KnowHR) [...]

]]> By: HR World » Blog Archive » Friday Links: FAA, Employee Turnover, 401ks http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4020 HR World » Blog Archive » Friday Links: FAA, Employee Turnover, 401ks Mon, 13 Oct 2008 04:56:05 +0000 http://www.knowhr.com/blog/?p=1007#comment-4020 [...] KnowHR has a great feature on five things that you should tell your 401K participants. Read it here. [...] [...] KnowHR has a great feature on five things that you should tell your 401K participants. Read it here. [...]

]]> By: Frank http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4019 Frank Sun, 12 Oct 2008 23:44:22 +0000 http://www.knowhr.com/blog/?p=1007#comment-4019 LOl, yeah, some uncles do know what they're doing. You're right...listen to them, but stay away from knucklehead uncles. LOl, yeah, some uncles do know what they're doing. You're right…listen to them, but stay away from knucklehead uncles.

]]> By: Totally Consumed HR http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4016 Totally Consumed HR Sun, 12 Oct 2008 17:49:48 +0000 http://www.knowhr.com/blog/?p=1007#comment-4016 Well said, except for the uncle part. I have very smart uncles, so maybe mine are the exception rather than the rule. Well said, except for the uncle part. I have very smart uncles, so maybe mine are the exception rather than the rule.

]]> By: Alex J. Avriette http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4010 Alex J. Avriette Fri, 10 Oct 2008 17:56:53 +0000 http://www.knowhr.com/blog/?p=1007#comment-4010 I may be the only person to say this, but think of it this way. The entire market is <i>on sale</i> right now. I bought AAPL for $12 in 2002. 52-week high is $202. Do the math. The only thing that should prevent you from pouring as much as you can into your 401k, <i>especially</i> if your employer is matching (free money, folks, there is <i>no</i> reason to avoid free money, ever), is the notion that the entire world economy will collapse and the stock market will be worthless.<br><br>Sure, it happened to the Romans, but I'm not certain there's a Mehmet II knocking at our door just yet.<br><br>Right now might not be a good time to invest in the traditional "stable" stocks (stocks with a beta of 1), but it might be a good idea instead to invest in stocks you know will a) not be controlled by the government and b) have inherent value that is presently devalued. An example might be AAPL, of course – they're not going anywhere in the ten year timeframe, but retail's going to hurt this christmas – or TIF for the same reason. Consider also some of the more esoteric mutual funds like FOSFX. Funds that deliberately invest in devalued, risky markets.<br><br>But that's just sound financial advice. Invest in, say 50% "reliable" stocks, 25% "growth" stocks, and anywhere from 10-25% "risky" stocks that may drop to zero, or may quadruple in value.<br><br>But whatever you do, <i>don't</i> drop out of the market because that is the only way to ensure somebody like me will come along and buy up your stock and cement your loss. When you <i>do</i> get back in the market (and you will), and the prices are "normal" again, you've lost that 40% or more that the stock rose.<br><br>Hint: limit orders. I may be the only person to say this, but think of it this way. The entire market is on sale right now. I bought AAPL for $12 in 2002. 52-week high is $202. Do the math. The only thing that should prevent you from pouring as much as you can into your 401k, especially if your employer is matching (free money, folks, there is no reason to avoid free money, ever), is the notion that the entire world economy will collapse and the stock market will be worthless.

Sure, it happened to the Romans, but I'm not certain there's a Mehmet II knocking at our door just yet.

Right now might not be a good time to invest in the traditional “stable” stocks (stocks with a beta of 1), but it might be a good idea instead to invest in stocks you know will a) not be controlled by the government and b) have inherent value that is presently devalued. An example might be AAPL, of course – they're not going anywhere in the ten year timeframe, but retail's going to hurt this christmas – or TIF for the same reason. Consider also some of the more esoteric mutual funds like FOSFX. Funds that deliberately invest in devalued, risky markets.

But that's just sound financial advice. Invest in, say 50% “reliable” stocks, 25% “growth” stocks, and anywhere from 10-25% “risky” stocks that may drop to zero, or may quadruple in value.

But whatever you do, don't drop out of the market because that is the only way to ensure somebody like me will come along and buy up your stock and cement your loss. When you do get back in the market (and you will), and the prices are “normal” again, you've lost that 40% or more that the stock rose.

Hint: limit orders.

]]> By: Ron Ulrici http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4008 Ron Ulrici Fri, 10 Oct 2008 16:16:51 +0000 http://www.knowhr.com/blog/?p=1007#comment-4008 Darn, I hate being the voice in the storm! I can't give advice to anyone, because I'm putting my few bucks in my mattress. Maybe it's my age, but I'm not convinced that we're coming back from this mess soon. If you're twenty or thirty-something, you probably are better riding it out... Darn, I hate being the voice in the storm! I can't give advice to anyone, because I'm putting my few bucks in my mattress. Maybe it's my age, but I'm not convinced that we're coming back from this mess soon. If you're twenty or thirty-something, you probably are better riding it out…

]]> By: Frank http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4007 Frank Fri, 10 Oct 2008 16:11:16 +0000 http://www.knowhr.com/blog/?p=1007#comment-4007 Laura, that's the best advice of all. That is really smart...sit tight and save more. WTG. Laura, that's the best advice of all. That is really smart…sit tight and save more. WTG.

]]> By: Laura http://www.knowhr.com/blog/2008/10/10/foive-things-to-tell-your-401k-participants/comment-page-1/#comment-4005 Laura Fri, 10 Oct 2008 14:33:07 +0000 http://www.knowhr.com/blog/?p=1007#comment-4005 Q: What's the hardest thing for people to do with their investments right now? A: Nothing. Psychologically, that really hurts. I suggest if you're feeling the need to do something -- anything -- you should increase your contribution just a bit. (I did, and I feel better.) Q: What's the hardest thing for people to do with their investments right now? A: Nothing. Psychologically, that really hurts. I suggest if you're feeling the need to do something — anything — you should increase your contribution just a bit. (I did, and I feel better.)

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