more bad news...

[HALEY]

Thanks Judy, i just can't help to be worried about the future, i read 6 papers a day and its all bad news, i'm a reader.
I try to be smart with my money, but now a days there is really nothing i can do with it but put it in "safe" places, like my Ira thru my bank. i moved my 401K what i have in it since my company screwed that up,, still pissed off about that into a retirement savings trust, it's not making that much money, but it will be safe there. at least i'm not going to lose it in the stock market anymore...
I'm just stuck now on what i'm going to do about a college fund for Micah.. i need to start something soon, or just send him to a trade school.. yep still thinking about my sons future, if he has one..

[Marilyn]

Haley, dear, I know it's a very trying time, but contributing to your 401K is still a good idea. The reason is the money is tax deferred. Whether or not there is a company match, the funds are taken from your check pre-tax and it reduces your taxable income. You are taxed when you take the money out when your income is lower, so you should come out ahead. What we need to do is be very careful how our 401K's are invested. Mine is currently going into a Putman money market account. It's like putting it into a money market account at the bank only it's pre-tax money. My return is low, but I'm not losing anything.

My 401K was hit hard by the stock market because it was in a "balanced" portfolio utilizing mostly mutual funds, stocks, as yours probably was.

I also have rolled my 401K's from previous jobs into a self directed IRA managed by a financial "expert" who had it in a "balanced" portfolio. So you know what happened to that. It's still in the "balanced" portfolio, only I had him shift what he could to funds that hopefully have greater potential for recovery should things actually recover some day.

The amount I can contribute to 401K has been significantly reduced, and there is no match, but it's still a good idea to continue putting what we can in there.

Hope this helps you. As you know, I'm very, very frustrated myself right now. I thought my job would weather this, and I'm still not too concerned, but am realizing that this is bad enough, I may have reason to be more concerned. I still think, even if my branch were to close that they would keep me on and let me work from my home strictly in an outside sales capacity reporting to another branch, so I'd be around to restart things later, but you never know. This may get really bad. Take care!! ((((((((Haley))))))))

[Gina]

Haley , I am so sorry to hear about your 401K plan, like most said you probably would have lost it. But the point here is that its done now. I watch Susie Orman a lot and I believe she mentioned in this economy if your company is not matching your 401K you are probably better off opening up a IRA account. Or to use that money and put it towards your mortgage for that is the ultimate goal of a 401 account for paying off the mortage when you retired. Not sure but go on her website and watch her show every Saturday nights @ 9 pm. She is very good and she also has written many books. Marilyn has given you good advice too.

As Judy mentioned don't worry about the future.. You are still young and the market will eventually rebound in time. My husband is closer to retirement and his mentally and feelings are the same. He is 54 yrs. old and he lost a lot to on his 401K. I feel for the people who are retiring now.

Haley we are all feeling the effects one way or another today. I sypmathize for my children and others who will be graduating this year and finding a job on Wall street or any other business company will be very hard. They will have to start paying their student loans. I wish someone would lower their interests rates on their loans until they are employed., for how are they suppose to pay when they have no jobs...


We can go on with so many problems... What is the sense...
Hugs to you Haley ride out the storm....

[judy]

If I lose much more in my "safe annuity" I'll have $10.00 for my old age. I also asked my financial guy to move it to more stable places when the dot coms fell apart. He did, but some is still in the market.

Luckily, I have a pension, will collect Social Security for as long as it lasts, and already bought my house. Except for wanting to leave it to my daughter, I don't really care if the mortgage ever gets paid off.

I feel for my daughter and SIL though. He's not working, and there are just no jobs up here. He's in the electrician's union but there are no jobs to fill. He always managed to find something, but with the economy like this, he's just not able to find work.

My feeling is that he will find something, but who knows when.

[HALEY]

Thanks everyone, i did move some money around, i change one thing, instead of putting money in my savings, i have a safe at home i been putting cash into, cause my sister told me to do so, cause its going to get worse before it gets better, i don't feel myself that this stimulas package is going to work, and i want cash on hand, in case i need it, i don't know how this is going to effect my bank but they got hit twice and i'm not chancing it anymore... my grandmother did this in the old recession, and she was glad she did. and i'm going to follow in her footsteps here.. just to be safe...