DISQUS

Hello! KnowHR Blog is using DISQUS, a powerful comment system, to manage its comments. Learn more.

Community Page

www.knowhr.com/blog/ Jump to website »

Subscribe
- New Comments
Community
Top Commenters
- Frank
  199 comments · 10 points
- Strahan
  17 comments · 1 points
- mszypko
  13 comments · 1 points
- lruettimann
  10 comments · 1 points
- rick
  10 comments · 2 points
Popular Threads
Recent Comments
- Congrats on the site and the book. But if I am going to put out money for a book I need a copy signed by the authors.
  4 months ago by rick
  
  in KnowHR Redesign!
- Oh, I'm so sad for you.. Having a vacation means finding the right place to relax and to freshen your mind by having a rest not working.. Oh, I can't enjoy my vacation in that kind of...
  4 months ago by Celebrity Sunglasses
  
  in What’s Your Vacation Policy?
- Hi Jon, Thanks very much for letting us know...we changed the color in response. Thanks very much for the input...it helps. We're happy about the new design...glad you like it.
  4 months ago by Frank
  
  in KnowHR Redesign!
- it seems that more and more people are aware now about this issue. when i search "Confidential do not distribute", i found only 2230 results and most of them also are blog posts on this...
  4 months ago by Cheap Textbooks
  
  in Confidential Do Not Distribute
- nice one....so the moral of the story is always remember to silent your phone. By the way, i have had once a worse situation when i forgot to silent the phone during an interview and it rang in...
  4 months ago by Cheap Textbooks
  
  in Silence Your Cell Phones…

KnowHR Blog

Jump to original thread »

Five Things to Tell Your 401k Participants in This Down Economy

Started by Frank · 8 months ago

Sell, sell, sell.
Those words seem to be front of mind with all investors these days. And your 401k participants are not different. They’re worried about the market and they’re worried about their retirement. Here’s what to tell your 401k participants:
% ... Continue reading »

7 comments

Laura
8 months ago

Q: What's the hardest thing for people to do with their investments right now? A: Nothing. Psychologically, that really hurts. I suggest if you're feeling the need to do something -- anything -- you should increase your contribution just a bit. (I did, and I feel better.)

reply

Frank
8 months ago

Laura, that's the best advice of all. That is really smart...sit tight and save more. WTG.

reply

Ron Ulrici
8 months ago

Darn, I hate being the voice in the storm! I can't give advice to anyone, because I'm putting my few bucks in my mattress. Maybe it's my age, but I'm not convinced that we're coming back from this mess soon. If you're twenty or thirty-something, you probably are better riding it out...

reply

Alex J. Avriette
8 months ago

I may be the only person to say this, but think of it this way. The entire market is on sale right now. I bought AAPL for $12 in 2002. 52-week high is $202. Do the math. The only thing that should prevent you from pouring as much as you can into your 401k, especially if your employer is matching (free money, folks, there is no reason to avoid free money, ever), is the notion that the entire world economy will collapse and the stock market will be worthless.

Sure, it happened to the Romans, but I'm not certain there's a Mehmet II knocking at our door just yet.

Right now might not be a good time to invest in the traditional "stable" stocks (stocks with a beta of 1), but it might be a good idea instead to invest in stocks you know will a) not be controlled by the government and b) have inherent value that is presently devalued. An example might be AAPL, of course – they're not going anywhere in the ten year timeframe, but retail's going to hurt this christmas – or TIF for the same reason. Consider also some of the more esoteric mutual funds like FOSFX. Funds that deliberately invest in devalued, risky markets.

But that's just sound financial advice. Invest in, say 50% "reliable" stocks, 25% "growth" stocks, and anywhere from 10-25% "risky" stocks that may drop to zero, or may quadruple in value.

But whatever you do, don't drop out of the market because that is the only way to ensure somebody like me will come along and buy up your stock and cement your loss. When you do get back in the market (and you will), and the prices are "normal" again, you've lost that 40% or more that the stock rose.

Hint: limit orders.

reply

Totally Consumed HR
8 months ago

Well said, except for the uncle part. I have very smart uncles, so maybe mine are the exception rather than the rule.

reply