Help with 401(k)... Please?

Question

My husband just started a 401k ,14 months ago. We had $1400 in it. We just got our statement from Liberty and WOW, we are down to only $230. We lost that much. What things can we invest in and if possible could someone give us %'s as how much for this or that. We have really got something screwed up somewhere. Any advice would be great. I am kinda of stupid when it comes to these kind of things so please help me with loads of info as to how I need to set this up we can can gain and possibly only loose a little. PLEASE!!!??????? Lots of thanks in advance!

Answer 1

What, specifically, is your 401(k) invested in that lost that much?

Answer 2

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Answer 3

WOW, that is real bad. About the only thing that is falling like that is real estate and bank stocks.

That almost sounds incorrect in some way unless he works in a bank  or some financial institution and the money was in company stock.

But we can't tell you much without knowing what the investment was and what options for investment you have.

Stocks are down 20% overall, not  85%.

Answer 4

Part of it is the market, it has not been kind to us buy and hold investors, but that is a significant % loss.  Check what kind of fees you are being charged as well.   Key is to diversify between large cap funds, small cap funds, and international funds.  I've used charles Schwab to invest for years.  They have a lot of research and information on how to diversify a portfolio on their website.

If you want a stock buy something that generates good dividends and reinvest them.  Company like GE, MMM, JNJ, CAT etc.

Answer 5

Are you sure you lost that much ?

I cannot see the funds that you mention losing that kind of percentage !!

How much of that did your husband actually contribute? Some of the $ 1400. must have been gains...but even IF you are just losing " gains" it still seems wayyyyy out of line.

If you can find on the report, or on-line, what the " symbols" are for those  four funds,  I would really like to look them up and find out if there's some kind of mistake...

A loss of even 20% would seem like a lot... and that would be something you would just have to " wait out"...but the loss you mention is like 80%...that could NOT happen.

As far as changing funds,  the problem is : your " plan" only offers such and such different things....and what you've got really shouldn't be that bad...I really think theres some kind of mistake somewhere..

Okay..I just checked one fund..the " equity income"  which has 49% of your money...it IS down 16% for the year...( and that kind of thing happens) BUT no way should you be down 85%... please be sure you are reading things right...

I'm going to look at the foreign fund now...

Back again...same thing Fidelity Overseas down 17%... but that SHOULD only be PART of what you gained in 2007 ...you said you were in for 14 months...in 2007 it GAINED  21.8%.... so you should still be slightly ahead !!

( ..it's hard to figure exactly because you add every payday...and you started out with a little ...and weren't making gains on a big sum.... but by the time you started losing you had put in more ..so the loss is bigger....if you know what I mean... )

STILL...over all ...I think something is wrong.... BUT if it isn't, you really don't have much of a choice but to " hang in there"...its hard to see right now, but things change in the markets and in " investing"...IT WILL WORK OUT...try to sleep nights, and keep putting the money into the 401...

In the investing and business world there are a million stories of  people just kicking in a little and doing this and that and after 30 years they have an astounding amount...again: THINGS CHANGE.  

Don't give up...and good luck.

Answer 6

First of all I am assuming you are in mutual funds. Either your advisor is that terrible, or you just randomly picked some investment vehicles. Look in to CGMFX mutual fund. Look into international related mutual funds, value oriented mutual funds, dividend mutual funds. Also, look into DRIP's. Dividend reinvestment programs, these things will make you a lot of money in 15-20 years from now. Also, make sure all of these funds have low expense ratios/fees, lower than 1%.