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Western Ohio | Tn,
Stay the course of what you have been doing. As soon as you start jumping around you are going to miss allot. I have a friend who has been out of the market since somewhere around 17-18000. He keeps saying he is going to buy in on the next drop. Lets say he has lost allot of ground on his 401K that quite frankly is going to be very difficult to make back up. I am not a believer this market keeps running from here. Things will settle down. My biggest concern would to have my money diversified between several different investment areas. International, Natural Resources, Large Cap ect. ect.
Now for a bigger belief. We as Americans have been snookered by this 401k deal. We are getting large near by tax breaks only to have to pay taxes (I believe higher tax rates) when we take the money out. I am a huge fan of after tax savings (most people can't save). I feel you need to put in the amount of the company or employer will match as that is free money. After you take the company free money you need to take the rest in your pay check and save it on an after tax basis. Being as you are on this forum I am going to guess you are a farmer. I think the best thing you could have done in last 5-10 years was buy a piece of ground as interest rates have been filthy cheap. Take your money from your employer and then pay your mortgage payment saving money in an after tax scenario. When you retire the ground goes to work for you and in most places of the U.S. if you started 10 years ago the land has doubled in value in that time frame. You do not have to buy ground there are other tools to use such as Roth IRAs or some of the other tools I am not as familiar with.
Phil A.
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401k allocation ?
