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|Subject: Re: Poll: Did your 401k recover from the 2008 de||Date: 12/28/2010 3:40 PM|
|Author: joelcorley||Number: 67992 of 75383|
You wrote, Did you recover your 2008 market losses ?
Yes. But mainly because my employer went belly up in 2008 and I rolled my 401(k) into my rollover TIRA and shifted a good portion of that account into beaten-down, fixed income securities on the theory that unlike individual homeowners, most big corporate issuers weren't simply going to default on their debts ... despite what the market seemed to be saying.
Had my 401(k) funds remained stuck in that 401(k) account, I doubt I would be doing nearly so well. My new 401(k) assets are also up; but that's no surprise given recent market moves. Perhaps the only surprise was that I didn't feel beaten up enough to put a lot of my contributions into money market funds [or reduce my contributions] like a lot of my [new] coworkers did.
My only regret is that loosing my employer in 2008 made me irrationally conservative about hording cash. [E-fund has risen to about 18 months of expenses, which even I would admit seems kind of silly.] Had I deployed most of that cash instead of hording it, I could have shaved a couple of years off my retirement target.
Who thinks that until recently, stocks and especially bonds have been on sale!
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