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Enron debacle
offeror
Member Posts: 8,625 ✭✭
I'm going to repeat some advice here I got from a broker a while back that I think makes a lot of sense, in light of the Enron mess, and in light of the fact that my retired parents in their 70's still own a bunch of Bank One stock that is no longer worth as much as it used to be due to unwise credit card marketing. They are not rich, so it DOES matter. Here it is:The stock market is risky but relatively a good investment when you're in medium risk funds. When you're young enough to ride the ups and downs, keep your 401K in good low-to-medium risk stock funds. Despite the ups and downs your money will grow over the long haul. But WHEN YOU REACH THE POINT WHERE YOU CAN NO LONGER AFFORD THE RISK OF LOSING A SIGNIFICANT PORTION of your retirement savings, watch for a relatively good market high week and then direct your broker to MOVE your money OUT of the stock market funds and into a Money Market account to protect your balance. You'll only get a few percent of interest on the amount from then on, but that's because your earnings will be one heck of a lot safer. Once you decide to move your money, don't let your broker talk you out of it. I have already left a job once where I had to protect my 401K, and used this very advice to save thousands of dollars by moving my money before a significant stock market fall-off.
"The 2nd Amendment is about defense, not hunting. Long live the gun shows, and reasonable access to FFLs. Join the NRA -- I'm a Life Member."
"The 2nd Amendment is about defense, not hunting. Long live the gun shows, and reasonable access to FFLs. Join the NRA -- I'm a Life Member."