Hopefully the VESPers moved it before the hit, but then again everyone got plumbeld. Oh well back to work.
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Post ID: @7kdt+1w3MpRd6: excellent post!!! truly good and sound advice. I agree a traditional 401k has its limits and pitfalls. And then again the RMD, required minimum distributions, aspect are mandatory taxations. Thank you for posting.
Instead of complaining about a big 1-day drop because the Fed Chair (Powell) decided he was going to personally talk the market down, putting as much of a negative spin on as he could muster.... do something useful with the opportunity.
I chose to do a 50k IRA to Roth conversion last Wed.... by Monday afternoon it had already bounced back enough to cover 30% of the taxes due. (Paid the taxes separately, but the uptick bottom line still covers them) I wish I had started doing roth years ago. As soon as the Gov made them available, I should have gone 100% Roth on the 401k contributions. All those years working I was itemizing my taxes, deducting state & local, mortgage, prop taxes & 16-20% of pre-tax 401k contributions... all of it (pre-2018) Now I'm retired, no longer pay state or local taxes, & no mortgage, no 401k contributions... So I basically have no deductions, only the standard deduct. And as such, my total effective tax rate has been about 3% HIGHER, than it ever was while working. So I've taken the hit the last couple of years and converted all I could to Roth by maxing out the 22% bracket. Again, if I had just done ROTH as soon as they came into existence I'd be ahead of the game... the $10k in tax saving each year when working, was not worth it long term. I pity the guys sitting on 1.5-2mil standard 401k balances, and hitting the RMA's at 72, 74 or whatever the age is now. They are going to be taking it right up the A... Both in fed tax, and increased medicare payment adjustments.
Markets move up & down all the time, but mostly up, long term.
So when they suddenly drop in an unexpected way downward on a world event... don't just b.... about it, take advantage of it.
yet, OP, a mere 5 days later, most have recovered and are nearing last week's levels.
You!re doing something wrong if you’re 401k got pummeled. My Verizon 401k was up 22%. Do you have all your money in Verizon stock?
Do not keep your money with the same company giving you a paycheck unless you are certain it is in a growth cycle. Since the iPhone was brought on at Verizon, I have yet to find anyone certain of our growth and outlook. Plan quarterly moves of any stock matching, stock deposits, grants from the company you work for.
Moved mine in October.
Meh. It's a market designed for long term investment. If you panic from day to day drops or increases, then you probably shouldn't look at your account. If over the course of a year, your account stinks, then you need to get some help with your 401K contributions.
I’m pretty sure everyone’s 401k took a hit the other day.
*pummeled