Comments on: Leave Your Money in Your Retirement Accounts!

By: fahersez

fahersez — Tue, 07 Apr 2009 08:10:53 +0000

In Malaysia, we contribute about 20% of our wages and salaries to the statutory retirement investment fund. This fuund called the Employee Provident Fund, invests the money and pays us a dividend yearly. (For 2008 it was 4.5%).

THere are restrictions to the withdrawal of the money until we reach retirment age of 55.

Still I think most of us appreciated the fact that we were protected from the tumbling markets effects on the EPF.

By: Ryan

Ryan — Thu, 26 Mar 2009 23:22:14 +0000

Hi Mark: Sounds like you've done better than most people in the last year! I've upped my contributions as well. I think that in the long run, it will do very well for me. Thanks for the compliments on the site layout. You can read about the recent redesign here: Cash Money Life 2.0.

By: Mark

Mark — Thu, 26 Mar 2009 23:08:48 +0000

I took a proactive approach.

I actually kept my money in my retirement fund but sold 50 percent of the shares I held in my stocks/funds just before the “fall” in October 2008. As a result, I managed to preserve my investments to a degree. While I did loose value, it was really just the same amount I “earned” during the last few years bull run.

So in the end, I broke even. Had I kept it all in the funds, I would have lost more. I am still contributing though. The money from the shares I sold is just sitting in a money market earning interest.

I am just waiting for the best time to jump back in. I did use some of it to purchase more shares in the funds that “fell” to lower the average cost per share which actually helped. Should these shares return to their former highs, I would actually increase in value beyond what I had before.

Not sure if this made sense. It is not for everyone. It takes financial understanding of what to do to control your investments. Nice blog, just checked it out for the first time. Love the layout.

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Thu, 26 Mar 2009 11:21:34 +0000

Great advice!

What is done is done. Don’t make it worse. And don’t miss the chance for dome upside to recoup losses– the market always overreacts and there is always a nice gain (usually 12-18 months) following a bead year.

By: Kristy @ Master Your Card

Kristy @ Master Your Card — Thu, 26 Mar 2009 06:08:40 +0000

Absofreakinglutely! I’ve been telling people at work this and they all look at me like I’ve lost my mind. I don’t understand why people have such a hard time grasping the concept LONG TERM! Getting into the stock market isn’t about making big bucks quick. It’s about staying in for the long haul. I hope investment advisors are still telling people that because it seems to me that too many people are jumping ship, which effectively locks in the losses. Hell, with my 401(k), I upped the money I was contributing and moved to a more aggressive position. Everything is on sale! Plus, I’m 27, so I’ve got lots of time.

By: Young Cash Cow

Young Cash Cow — Tue, 24 Mar 2009 14:34:35 +0000

I couldn’t agree more. The key for me is “locking in losses.” People love to say, “I’ve lost so much in my IRA.” But the truth is, you haven’t “lost” anything until you take it out. Once the market rebounds, everyone will be just fine… especially those who invested during the low times (and now it’s still low – so jump in if you haven’t already!).

By: Benjamin

Benjamin — Tue, 24 Mar 2009 12:55:18 +0000

I rode the stock market down being 100% invested in foreign and American mutual stock funds, and I intend to ride the market back up!

There is less risk in stocks now than there was a year ago, there is a lot more “value” in this market!

That being said, I almost sounds like a cliche’ to say that “stocks can’t go much lower” lol!

Anyway, I still believe that long term, stocks are the way to go! I few more days like yesterday (march 23) and we’ll be right back in the black!

Nice post!

By: MoneyEnergy

MoneyEnergy — Tue, 24 Mar 2009 07:30:47 +0000

Very thoughtful post, there…. alot of people need to hear this.
I’m in my early thirties, and there’s no way I’m touching any of my paper losses. I’m not even worried about it. People who have kept their holdings have even already seen them bounce back up from the lowest November and February lows. So just hang on…. and, for the future, remember that this is why dividend stocks can help ease out these bumps in the road.