I think that hurt.

[feren]

So the stock market tanked today and, accordingly, my 401(k) felt some small amount of pain.

Balance on market close yesterday: $106,818.40
Balance on market close today: $102,976.52

Net loss in one eight hour period: $3,841.88

That stings just a little! At least I didn't lose more than I and $EMPLOYER put into the fund since the beginning of the year, so from where I stand I'm still coming out ahead. If I'm lucky I'll be able to cash in on these depressed prices when my next contribution for the fund goes through.

Comments

[rustitobuck.livejournal.com]

Wow. You lost half of my entire retirement savings. Marriage, divorce, kids in college; I should be in a position to save when I'm 54 and the youngest is out of school.

Yeah, it sucks, but that's the breaks of having stock. I presume you're well-diversified and that's not all in, say, growth stocks. Of course you are, I know you're a smart guy.

Today's financial planning for me: $5 in the lotto pool. I want to be in the half of the office that is rich if we win, not the half that wishes they'd played. Think of it as regret insurance. (And also see my entry about huge office BS).

[feren.livejournal.com]

I'm diversified (run my biggest accounts across three different types of investments) but am heaviest on stocks because that's where the biggest growth on the long term is (and risk of loss in short term, as evidenced by the numbers I turned in on Tuesday evening). When I get a lot closer to retirement I'll start changing over to less volatile performers to cut down on risk and maintain a decent RoI.

[markvd.livejournal.com]

My paper net worth dropped a bit over 2k today also.

That said, this isn't much compared to the runup it has had in the past 8 months or so. It is probably time for a small adjustment. Hopefully it doesn't drop too much more as I'm still positive gain for the year :).

We'll have to see what happens tomorrow.

oshi-

[neuracnu.livejournal.com]

Re: oshi-

[feren.livejournal.com]

Yup. But on the flip side, the benefit of those two bullet points is that I make a metric fuckton more interest on the monies. I'm getting back something on the order of 20% right now.

Re: oshi-

[doomsey.livejournal.com]

I'm much more worried about the value of a certain other investment, which represents quite a bit more money than my retirement accounts and was bought with significant leverage...

Re: oshi-

[feren.livejournal.com]

Right there with you.

Re: oshi-

[neuracnu.livejournal.com]

Aggressive! I'm doing the same thing with my Roth. The bank shows me the previous day's balance and after reading your post I took a snapshot. This evening I'll be prepared to weep.

Re: oshi-

[feren.livejournal.com]

I haven't looked at my Roth in ... ever. Probably because I didn't know I had one until my father pulled that little tidbit of information out of his hat last year when I was discussing opening one.

I hate when he does things like that.

[skorzy.livejournal.com]

Everybody with their retirement funds in the market got nailed today. To see my accounts in the red, and numbers like THAT in one day certainly made my heart skip a beat.

But hey... that's why they call them long term investments, and I got a few more decades of scientistizing to go before I hang up the lab coat, plenty of time to watch it go black again.

[feren.livejournal.com]

Exactly. Market trend has, on the long term, been "up." And I've certainly got a long time to go before I'm anywhere near retirement age.

So unless we manage to glass the entire world in some sort of apocalyptic war I should be okay.

[youngvanwinkle.livejournal.com]

Think of it this way... your next few regular buy-ins on your 401(k) will be cheaper because of the reduced stock prices, and then when it goes back up again, you'll end up making even more money.

[feren.livejournal.com]

I believe you have successfully rephrased the essence of what I said in the final sentence.

[linnaeus.livejournal.com]

That's why I try not to look at my balances that often. :) Anyway, it'll come back, barring anything really stupid. That's the joy of dollar cost averaging over the long term.

Now any option sales anybody might have had planned for the near future, that's another, highly annoying story...

Options? Pfeh.

[feren.livejournal.com]

I realized I was wrong to call it toilet paper because all my options are virtual and recorded on a website somewhere... not on paper I hold.

I cannot wipe myself with virtual toilet paper!!!

Re: Options? Pfeh.

[frostyw.livejournal.com]

@@@@@h, no.

[spoothbrush.livejournal.com]

One of my teammates a few years ago gave me some pretty good retirement planning advice: set up the accounts, automatically pay into them, and look at the statements about every ten years. It's not really money while it's in the stock market, anyway... it's potential money.

[feren.livejournal.com]

Even money isn't really money in the way most people think of it. We've been off the gold standard (where are you, Smish?) for decades. But that's not the point you're making, I know. ;-)

It's all potential but with careful management it has some pretty amazing potential -- especially when you consider the Rule of 72.

[prophetx.livejournal.com]

I will try and give you insight from $Employers point of view....

"We Dont's look at it as "a loss" or "going down at a quick rate" You have to stay positive. At least we're picking up speed!!!"

Stay positive?

[feren.livejournal.com]

No problem -- it's easy for me to do when all I have in $EMPLOYER is stock options and not actual invested money.

loss or refunded gains?

[(Anonymous)]

You probably lost half of what you had gained in the last few months,
it was just the market "correcting" itself for too much growth.

Don't be a sore looser, you should still be well ahead for the last year.

Re: loss or refunded gains?

[feren.livejournal.com]

Lost half? Sore loser? Naw, my gains in the last four months were a lot more than $8k, so what I shed last week was not anywhere near "half what I gained in the last few months." But thanks for playing, Anonymous Economics Professor! Your sage wisdom is always welcome.