Page 1 of 2 12 LastLast
Results 1 to 10 of 11

Thread: Investment Question

  1. #1
    Grouper
    Join Date
    11/12/2008
    Location
    Mount Orab, OH
    Age
    47
    Posts
    460

    Investment Question

    Any Investment folks on the forum? Like most Ive been sitting here watching my 401k take a dump...I have my portfolio on auto rebalance every 3 months, with things being the turd they are, should I be rebalancing or leave it alone.

  2. #2
    Grouper
    Join Date
    08/19/2007
    Location
    New York
    Posts
    732
    All losses are essentially just 'paper losses' until you take money out or sell something off. As long as your money is in there, there is always the potential for recovery. You have to assess your risk tolerance, and decide for yourself whether you are ok with letting it ride, or whether you are ok with realizing the losses you have incurred thus far, and avoiding any further loss. If you have time (you're not retiring tomorrow), I'd be inclined to leave it in and wait until the market cycles back up again. But that's also because I have 30+ years to go until retirement. You will have to assess the risk vs reward in your own case and make the best decision for you. Good luck with it!!

  3. #3
    Grouper
    Join Date
    11/12/2008
    Location
    Mount Orab, OH
    Age
    47
    Posts
    460
    Quote Originally Posted by caroln View Post
    All losses are essentially just 'paper losses' until you take money out or sell something off. As long as your money is in there, there is always the potential for recovery. You have to assess your risk tolerance, and decide for yourself whether you are ok with letting it ride, or whether you are ok with realizing the losses you have incurred thus far, and avoiding any further loss. If you have time (you're not retiring tomorrow), I'd be inclined to leave it in and wait until the market cycles back up again. But that's also because I have 30+ years to go until retirement. You will have to assess the risk vs reward in your own case and make the best decision for you. Good luck with it!!
    Nah! I'm not taking the money out, It's just every 3 months mercer auto rebalances my portfolio to try and stay on track with my retirement date, but its taken such a hit, I was wondering if should let that rebalancing thing happen and try to recoupe in the current investment funds Im in or let them move it to other funds, seems like the selling of one fund to buy into another is not the right thing to do, but I have no clue?

  4. #4
    Grouper
    Join Date
    07/11/2008
    Location
    Islamorada, FL
    Age
    60
    Posts
    565
    Images
    4
    Quote Originally Posted by nrembis View Post
    Any Investment folks on the forum? Like most Ive been sitting here watching my 401k take a dump...I have my portfolio on auto rebalance every 3 months, with things being the turd they are, should I be rebalancing or leave it alone.
    I am not an investment person...just a guy trying to ride out the storm like everyone else and my strategy has been just to let it ride. I opted not to auto-balance after observing over a period of time that the percentages across my portfolio were holding true to my original allocations. It wasn't necessary in my case but YMMV depeding on how your portfolio is allocated and diversified.

    Good luck!

  5. #5
    I assume you know this, but as you get closer to retirement, the rebalancing will adjust your portfolio to less risky investments. Less risk means that you portfolio will have less of a swing when the market changes. This goes both ways, when the market goes bad, you will lose less, but when it starts to improve, you will gain less. The problem with rebalancing right now would be that you are selling the investment that just had huge losses and replacing them with investments that aren’t going to increase in value as much as the others when the market starts to recover. However, a lot of people say that we haven’t seen the bottom of this yet and so it might be better to adjust your portfolio into less risky investments.

    Really it comes down to what caroln said in that it all depends on the level of risk you are willing to take and how long until you will be retiring. There are good and bad to both options, you just have to make a decision or call good financial consultant to help you make the right decision for you situation.

  6. #6
    Barracuda
    Join Date
    07/15/2008
    Location
    Manhattan, Kansas
    Age
    70
    Posts
    1,139
    Images
    23
    Depends on where you are in the tax tables - you can cash in some and take the loss off on tax to reduce your income taxes you have to pay. My taxes for my business is based off of fiscal year so I have a couple of months in 2008 to play with what if. I ended up cashing some in and taking a max amount loss allowed to off set my income taxes. I still have to pay but it reduced the bill and I'm money ahead. Then I turned around and reinvested it another area. Just moved from here and put it there I didn't take any money out just moved it...
    Last edited by CWSWine; 04-03-2009 at 12:31.
    - Dennis ><()))">

  7. #7
    Grouper
    Join Date
    11/12/2008
    Location
    Mount Orab, OH
    Age
    47
    Posts
    460
    Quote Originally Posted by Landlocked Amphibian View Post
    The problem with rebalancing right now would be that you are selling the investment that just had huge losses and replacing them with investments that arenít going to increase in value as much as the others when the market starts to recover.
    Thats what I was thinking, if they rebalance I would have NO chance at recouping the losses if they sell it at such a loss right now and buy into another fund with less risk, sure sucks no matter what way I look at it. I know nothing about that stuff, I just dump money in there out of my paycheck every 2 weeks and hope Its not lost the following week

  8. #8
    Grouper
    Join Date
    11/12/2008
    Location
    Mount Orab, OH
    Age
    47
    Posts
    460
    Quote Originally Posted by CWSWine View Post
    Depends on where you are in the tax tables - you can cash in some and take the loss off on tax to reduce your income taxes you have to pay. My taxes for my business is based off of fiscal year so I have a couple of months in 2008 to play with what if. I ended up cashing some in and taking a max amount loss allowed to off set my income taxes. I still have to pay but it reduced the bill and I'm money ahead. Then I turned around and reinvested it another area. Just moved from here and put it there

    I dont think I can do that at my age, Im only 36

  9. #9
    I really do think it would be a good investment to spend some time and money to talk with a good financial adviser to help you better understand what is going on. It will help you both in the short and long run. Even if you aren't making the day to day decisions about the management of your portfolio, it is really helpful to know what is going on and how everything works.

  10. #10
    Grouper
    Join Date
    08/19/2007
    Location
    New York
    Posts
    732
    Quote Originally Posted by Landlocked Amphibian View Post
    I really do think it would be a good investment to spend some time and money to talk with a good financial adviser to help you better understand what is going on. It will help you both in the short and long run. Even if you aren't making the day to day decisions about the management of your portfolio, it is really helpful to know what is going on and how everything works.
    This is very good advice, but if you don't have the inclination to follow it, the Wall Street Journal put out a couple of really good and easy to understand books about personal finance that really explain this stuff in layman's terms. They are under 20 bucks at Barnes and Noble, not a huge investment of time or money

Page 1 of 2 12 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. i have a question...
    By scubamommie in forum About This Site
    Replies: 8
    Last Post: 03-27-2009, 11:20
  2. Serious Question
    By guygetswet in forum UW Video
    Replies: 11
    Last Post: 05-31-2008, 23:22
  3. To see or not to see that is the question
    By scubasteven45 in forum Mask / Snorkels / Fins
    Replies: 22
    Last Post: 09-16-2007, 13:04
  4. bc question
    By coralcrazed in forum Scuba Stories, Comments & Questions that don't fit elsewhere!
    Replies: 12
    Last Post: 09-15-2007, 22:29
  5. A Hello And A Question
    By Zyxistal in forum Welcome to our Scuba Forum! Introduce Yourself!
    Replies: 7
    Last Post: 09-07-2007, 01:06

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •