Retirement Fund taking a beating

[movingex]

I've been so overwhelmed over the past year going through a divorce and some other things that I just really noticed that my Vanguard Retirement fund is really taking a beating.

I am just about to turn 50 (whew) and I really need to pay closer attention to this. My ex-wife used to be the financial guru but now I have to figure it out myself and I hate it.

Any advice on safe types of funds that are popular now that the market is so bad? I have a Roth and Traditional IRA.

I know that any advice should be taken with a grain of salt but I would still be interested in what others may have to offer.

Thanks

[Digigeek]

Cash under your mattress is the only truly safe thing I know, but only if you live in a well locked house in a "good" neighborhood. Even the index funds are getting killed right now.

[KeithnFW]

Retirement! ha, that's funny.

[ShutteredEye]

Originally Posted by movingex

I've been so overwhelmed over the past year going through a divorce and some other things that I just really noticed that my Vanguard Retirement fund is really taking a beating.

I am just about to turn 50 (whew) and I really need to pay closer attention to this. My ex-wife used to be the financial guru but now I have to figure it out myself and I hate it.

Any advice on safe types of funds that are popular now that the market is so bad? I have a Roth and Traditional IRA.

I know that any advice should be taken with a grain of salt but I would still be interested in what others may have to offer.

Thanks

Leave it be, be patient. Invest for the long term.

Like Dave Ramsey says, there is no 10 year period in the stock market that has not made money, and no 5 year period that has lost money...

[STP Images]

During turbulent market conditions, this is a common fear. An important thing to remember is that you have not realized ANY gains or ANY losses until you take distribution of your funds. In its history, the NYSE always increases. When I was in college, I remember Black Monday and the NYSE was around 1,700 just before the crash in 1987. Now, just 20 years later, the market fluctuates between 11,000 and 13,000. There has never been a 5 year losing period in the history of the market.

The important thing for your long term goals should be to buy and control shares. While you'd like to see higher prices per share for your portfolio now, your purchasing power is diluted when prices are high. You want as many SHARES as possible knowing that if your funds are not TRUE dogs, you'll come out ahead by the time you retire.

If you pay high prices now for funds, you control fewer shares. When you cash in, THAT'S when you want the per share price high. Be glad for the short term discount in the market so you can buy more shares now at the lower prices.

You likely have a number of years to go until you take distributions, so accumulate as many shares as possible with as many SOLID funds as possible and you'll be ok. Too much "day trading" in a retirement accounts KILLS your long term growth, which is what a retirement fund is all about.

I am NOT a financial advisor, a stock broker or an analyst. However, I did stay at a Holiday Inn Select last night. YMMV.

[AndrewCCM]

I know how you feel. My 401k is sucking bigtime over the last couple of years. My father-in-law is a financial planner and took my wifes 401k rollover and put it in some Oppenheimer accounts that have been doing decently throughout this mess. She worked with me for 9 years and has more in her retirement accounts (been stay at home mom since 2001) than I do!!! And I have been there nearly 16 years and make twice what she did! Talk about a bitter pill.

I just keep praying that everything turns around within a few years and all this $ going in is just buying low. My guess, however, is that I just bought high and that most money going in now is part of the "correction". Regardless, I wouldn't have saved as much without the 401k on my own and I have a good 25 years left before official retirement age...39 now..

My company also recently bought Reuters which I would have thought would make a difference in our company stock prices... The difference is that it went down too. Ugh.

Oh well...it's just money right?

Good luck to you...I hope things turn around.

[dbphotos]

Originally Posted by movingex

I've been so overwhelmed over the past year going through a divorce and some other things that I just really noticed that my Vanguard Retirement fund is really taking a beating.

I am just about to turn 50 (whew) and I really need to pay closer attention to this. My ex-wife used to be the financial guru but now I have to figure it out myself and I hate it.

Any advice on safe types of funds that are popular now that the market is so bad? I have a Roth and Traditional IRA.

I know that any advice should be taken with a grain of salt but I would still be interested in what others may have to offer.

Thanks

My philosophy is to never chase the market. Vanguard is a good family of funds and the market will turn around. Unless you are ready to retire ride it out and they will go back up, no one can tell you when, but history proves that the market always rebounds. I have most of my $ in American Funds which has routinely done very well, but it has taken a hit as well. Don't take the "grass is always greener" approach to investing or you will never be happy with results.

This is actually a good time be adding to your investments when prices are low as this will pay off when prices go back up. Google the term "dollar cost averaging" and study that, it will help you through these tough times.

1 (just 1 of several) of the reasons the market is declining is because people are panicking and selling off. What happens when a larger than average # of people sell off? It drives the prices down even further. If possible, try to take all emotion out of investments and you'll do much better in the long run.

Just my .02 cents.

[3n-Out]

The DOW is below 11,000 today the lowest in two years. We are all taking a hammering. I know I am.

[ShutteredEye]

Originally Posted by 3n-Out

The DOW is below 11,000 today the lowest in two years. We are all taking a hammering. I know I am.

I'm not even going to look. It would only stress me out.

[STP Images]

Originally Posted by 3n-Out

The DOW is below 11,000 today the lowest in two years. We are all taking a hammering. I know I am.

You don't take a beating unless you sell your shares below your cost basis. You still own the same number of shares today as you did yesterday (assuming you're not day trading your funds). When you retire, those funds will be much higher than they are today if they are solidly performing funds.

Also, the DOW is now at 11,120, less than 10 minutes after your post. Hang on, this too shall pass.

[3n-Out]

Yeah, I'm LONG on everything I own.. I still have a good 20 years left in these bones.. :)

But none the less it is depressing being down over 40K this year... Ugggggggggggg...

[Digigeek]

Jim Cramer's advice on dollar cost averaging is to buy twice as much in the 10% + dips than you do at other times.

[ka5txl]

Originally Posted by ShutteredEye

Leave it be, be patient. Invest for the long term.

Like Dave Ramsey says, there is no 10 year period in the stock market that has not made money, and no 5 year period that has lost money...

Or as Dora says in "Finding Nemo" "keep on swimming, keep on swimming" Just make sure your money is not all in one basket like Enron Stocks. Use this as a time to buy even more shares in mutual funds. I'm also in my early 50's and I know I still have a long way to retire. Things will get better and the stocks will cost more so your monthly contirbutions will buy less than they do now. Or to put it another way would you like to buy that camera (or mutual fund shares) at full price or buy it on sale?

[ol geezer]

Bob Guess of Senior Financial Services is a solid financial advisor. He has offices in Dallas and Fort Worth. His fee is 1% of portfolio he manages. He charges nothing for meeting with you and going over your investments. Phone 1-866-590-2555.

[LDB]

I'm not an adviser so take this as nothing more than commenting but at 50, presuming you aren't retiring till perhaps 60 or even later if you like what you do, you should hold the Vanguard and add to it while things are down. You've got time on your side for recovery as well as the chance to dollar cost average your holdings to a stronger position. If you look at today and think about today it's bad. If you look at the decade or more till retirement it's an opportunity.