Has your 401(k) plan fully recovered?

Strong profits and a bipartisan plan to lift the U.S. debt limit drove the stock market Tuesday to its biggest one-day jump this year, Associated Press writes.

The Dow Jones industrial average gained 202.26 points, or 1.6 percent, to close at 12,587.42.

Have you been sharing in the gains? Since the market hit bottom nearly two-and-a-half years ago, has your 401(k) returned to where it was? Almost returned?

Or did you bail out before your portfolio could rebound?

What is your game plan now, given the still perplexing economy?

Are you sticking with many of the “experts,” who are advising a diversified mix of domestic and international stocks and bonds?

Or have the last few years scared you away from stocks? If so, what is your growth plan?

- Henry Unger, The Biz Beat

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38 comments Add your comment

Jones

July 20th, 2011
8:26 am

Yes!!! And I’m very happy.

james

July 20th, 2011
8:29 am

yes i stayed in but what will the price of bread be when i retire?

LeeH1

July 20th, 2011
9:01 am

My 401 became a 201 when the first Bush Economy tanked in 2001. It slowly grew back, but only to the level it was in 2001 when the Bush Economy tanked again in 2008. Now it is finally beginning to grow again, at least somewhat faster then just by my new donations.

Now I’m scaredwhat will happen on August 2, when the NeoCons and the Bush Economy wannabes want to take us all back to the heady days of Fall, 2008.

What is good for the filthy rich and their puppets, is not good for the American economy.

Enry Hunger

July 20th, 2011
9:06 am

I’ve stayed the course with stocks. However I must say it’s been a bumpy ride. It’s kind of the way I feel when I sit down at the Blackjack table in Vegas. I figure I’ll loose but think there’s hope because I just might get lucky.

john otto

July 20th, 2011
9:07 am

What our Liberal friends seem to miss is that the Economy tanked in 2001 due to 9/11 PERIOD, and in 2008 the economy was controlled by Reid, Pelosi, Boxter and company. Now with a national debt ot 14 trillion, gas at $4 now get ready for the inflation to take hold. Reagan said it best ” My Liberal friends know a great deal about what just isn’t so.”

smokewagon

July 20th, 2011
9:22 am

It is very obvious that the liberal agenda evolves around destroying capitalism as we know it. If Obama is re-elected the 401k and Wall St. will tank.

Jones

July 20th, 2011
9:32 am

If Obama is re-elected, I’m going to Canada. I will not sit by and watch that man destroy this country any further.

N

July 20th, 2011
9:33 am

Absolutely it has recovered and then some. The market is up nearly 90% from the low. Knowing your time horizon and staying in the market has been rewarded. I feel for those that got out near the bottom and will not invest again…hard to create security with savings rates alone.

Danny O

July 20th, 2011
9:38 am

I’ll make an attempt to not get sidetracked:

My 401(k) has recovered. I’m at least 30 years away from retirement, so I can afford to invest primarily in equities. The market of course has its ups and downs, but there seem to be a lot of companies w/strong balance sheets. As long as the American consumer keeps consuming, it looks like there will continue to be a solid market for products and services here. And those companies with money to invest will have the means to do so when they spot a good opportunity.

Besides stocks, I’m going with short-term bonds to protect some principal w/out taking too much of a hit when interest rates begin to rise.

PTC DAWG

July 20th, 2011
9:39 am

Without a doubt…I had freinds who bailed at the low point and they are sick now. I advised them if they had to bail, only sell half of their shares of funds….remember, you only have a true loss when you sell at the low point.

As far as individual stocks, I’m not a fan. I’ll take a balanced fund anyday for steady returns.

Fletch

July 20th, 2011
9:54 am

Some of the above posters are obtuse to say the least. I’m definitely not Team Obama, but you do realize that the stock market tanked to roughly 7,000 points back in 2007 – 2008 and has RECOVERED to 12,100 – 12,500. If that is your idea of Obama destroying the country, you had better stuff your money in your mattress, the complexities of risk management and savvy investing will just be to much work for you to understand.

Red

July 20th, 2011
9:59 am

Took half of the money off the 401K casino table and paid off the mortgage since I was defensive anyway- will reinvest after the crash comes; but in emerging markets and hopefully catch a wave up.

Michael

July 20th, 2011
10:00 am

The stock market essentially shorts the economy. More layoffs mean more savings and profits for companies.

Wednesday Blues

July 20th, 2011
10:00 am

@Fletch – I already have a stash in my mattress (not really IN the mattress), that the government can’t have, tax or take from me. Every payday I take some cash and add to the “stash”…..

Democratic Party

July 20th, 2011
10:00 am

Fletch:
The stock market increasing doesn’t mean the overall economy is in good shape. You can grow a company’s stock by eliminating expenses ie jobs which is why the market is up. Sooner or later these companies will have to sale their products in larger volumes and not just rely on cutting expenses to show good profits.

Michael

July 20th, 2011
10:03 am

And if you will not sit by and watch him destroy this country any longer, why delay your move to Canada for 2 years? If they’ll take you.

Chuck

July 20th, 2011
10:07 am

My negligence actually paid off. I had switched jobs in late 2007 and rolled over my 401K to my new company but did not take the time to set up my investments. As such, my funds were in a stable value portfolio with no risk. My funds were the same as started with plus contributions when the market crashed. Afterwards, I allocated the funds without loss. However, I wouldn’t recommend this as sound investment advise.

Ree Tired

July 20th, 2011
10:20 am

We have a couple of 401K’s. One has not been added to since 2006. The bottom line as of the June quarterly statement is finally equal to what it was at the close of 2007. So we are where we were 3 1/2 years ago with that one. The other has had some additions up to retirement 2 years ago. While both are diversified the second one is a more conservative mix. It has had modest gains, about a total return of 1.5 % since the beginning of 2008. We have moved both recently into somewhat more conservative allocated mix of funds about 30-35% stocks (broad mix of low to medium risk. domestic and global) 60-65% bonds (low risk mix of government and corporate, small portion of which is global) and 5% cash instruments. It’s a bit contrarian to the present market outlook but at this stage of life need to be more conservative especially with what we have experienced in last 10 years with the markets.

40 year old

July 20th, 2011
10:23 am

Prior to the stock market disaster in 2008, I had too much money in stocks, like many other people. In my case, I had all my 401K in stocks–an equal mix of smaller U.S. stocks, S & P 500, and large foreign stocks. In 2008, the amount was close to 200K. By the beginning of 2009, it was less than half that and when the market continued to plummet during the first few months of the Obama administration, my 401K had dropped to around 80K. Thankfully, I felt young enough at the time to let it ride, and my fund, with the rise in stocks and my continued contributions, is now a bit over what it was in 2008. However, at the beginning of this summer, I decided to take a more conservative approach and moved about 30% of my funds into t-bills and bonds. I find it just as hard to let money sit on the sidelines in t-bills as the market goes up as letting money sit in stocks as the market goes down.

Soothsayer

July 20th, 2011
10:24 am

Yeah Jon Otto, NEVERMIND the Republican senators and reps that were in Washington occupying the Congress during that time as well. Boy that Reid and Pelosi sure are some powerful people I tell ya, which brings me to my next point…The election of 2010 (from your mouths to our ears) supposedly brought us a republican “mandate”. I notice you guys are still whining, though you declared you were swooping in to save the country and the economy. We’re waiting…oh don’t bother. And as for my 401k… I liquidated it and paid off debt (cars and credit cards). Couldn’t stand to see it swirl down the crapper the way it was back then.

Mike S.

July 20th, 2011
10:29 am

These business blogs bring out the best comments…..so entertaining.

LeeH1- oh my, the republicans have ruined your life!

Red- when is that certain crash coming and what causes it? Keep waiting, it has to come eventually, right?

Democratic Party- kinda like Apple, huh?

Bennihana

July 20th, 2011
10:32 am

We shouldn’t worry about Joe. He’s nothing more than a blowhard like so many of them. He hates Obama so much because he is a “socilaist Marxist commie”, but he is going to show us all how much of a patriot he is by moving to ….CANADA (where socialism abounds, or is at least thought to by us myopic “americans”)! Why don’t you tell us what’s really eating at you about this Obama guy Joe?

Democratic Party

July 20th, 2011
10:34 am

Mike S.
What about Ford? Apple moves the entire market?

Average Joe

July 20th, 2011
10:36 am

This is the best economy ever ! I am making more money than I ever have and job recruiters call me all the time. Lets keep everything just like it is.

Um

July 20th, 2011
10:38 am

I wish we could “short” the US government.

Mike S.

July 20th, 2011
10:41 am

Democratic Party- from Wikipedia…..In the first seven months of 2010, vehicle sales of Ford increased 24%, including retail and fleet sales. Fleet sales of Ford for the same period rose 35% to 386,000 units while retail sales increase 19%.

Enry Hunger

July 20th, 2011
10:43 am

I feel I’m a somewhat shrewd investor and recenty went all in with Jim Donnan Investments. Yep, I plan to be a millionaire in a couple years.

Flapjack

July 20th, 2011
10:46 am

Enry you idiot. Read the news man. That dude just bankrupted and is facing legal trouble.

Mike S.

July 20th, 2011
10:46 am

Democratic Party- From the Ford website….

Soundbites: June 2011 Sales
Ford’s June sales totaled 194,114, up 14 percent versus a year ago. Cars and utilities posted the largest gains, while trucks also posted increases, rebounding from May.

Refugee

July 20th, 2011
10:47 am

Voice of experience here… Canada is a nanny-state that does not want Ugmurkins… BC (i live in the US, 20 miles from Victoria BC, which I can see from my house lol) wants (Chinese and others)who can afford the housing (5x Atl costs at least) and other costs plus pay the $1.6 million upfront, plus sell all your 2nd Amendment possessions – I did). Love the natural beauty, and the PNW of the US is more beautiful than Canada.

There are Nine Nations in the US. If you do not have millions, it may pay to make a choice among them. “Ecotopia” works for me.

BTW, when i was in Argentina the govt confiscated people’s 401ks. Google it.

When people talk about moving abroad, it is often someone without even a passport

Enry Hunger

July 20th, 2011
10:47 am

Oh S&%# Flappy. You just ruined my day!

Mike S.

July 20th, 2011
10:47 am

Flap- I am pretty sure Enry was trying to be funny

Enry Hunger

July 20th, 2011
10:50 am

Question; Contingent on Georgia’s record this year, any chance he could come back as coach with Ray Golf as his assistant?

Flapjack

July 20th, 2011
10:51 am

Stick with investing Enry. Sports is obviuosly not your thing.

Lost in space GOP/TEA Party contract on america

July 20th, 2011
11:27 am

What our Liberal friends seem to miss is that the Economy tanked in 2001 due to 9/11 PERIOD, and in 2008 the economy was controlled by Reid, Pelosi, Boxter and company( blame Game) . Now with a national debt ot 14 trillion Ten was BUSHS, gas at $4 now get ready for the inflation to take hold. Reagan said it best ” My Liberal friends know a great deal about what just isn’t so But the Tea Pary Is just clueless and on hard DRUGS.” The TEA Party has there beliver on hard Drugs . Workers who vote NeoCons want there JOBs ended and cut benifits and the CONs want to blame every body but them selfs. Any help for worker? just the rich and big companys and these clown make 38k a year they are on drugs!

Red

July 20th, 2011
11:37 am

@MikeS

Euro meltdown: Nicolas Sarkozy to fly into Berlin for crisis talks with Angela Merkel
We don’t have ’silver bullet’ solution, says Merkel
Bankers fear collapse worse than Wall Street 1929
Greek, Spain and Italy need to tackle their debt
Euro down 0.19 per cent at 4pm

Contagion-just sayin’

Road Scholar

July 20th, 2011
2:48 pm

Jones: Boo Hoo! Eh!

With who the Repubs have rolled out for President, Pres Obama will be back in the White House. Remember to pack your long johns!

Move to another red country

July 20th, 2011
8:19 pm

LeeH1

“What is good for the filthy rich and their puppets, is not good for the American economy”.

Hahahaha. Why don’t you get off your whinney azz and become filthy rich? Stop waiting for a hand out and bashing someone that makes 100 times more than your lazy, whiney azz. Get a frkin LIFE!!!