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Frustration is... (Read 439 times)
BenBuck6
posted: 10/10/2008 at 2:00 PM
modified: 10/10/2008 at 2:15 PM
Being your company's Financial Manager during times like this...

Old College buddies are calling me left and right asking if I know which banks are extending credit to businesses (most still are in this area btw).

I also manage our companies 401k plan...OMG, there is NOTHING I can say.We have a 73 year old exec that has lost 40% of his retirement in 2 weeks...and is now talking about working another 2 years, and he was going to retire in Jan. The only option to be safe in our 401k is a money market account, but it is unsecured.

Sorry, just had to vent for a second...at least Gas prices should be coming down.
2008 GOALS

GET BELOW 175 (at 175 now)
RUN 6:00 MILE (at 6:29)
RUN BELOW 25:30 5K
RUN BELOW 55:00 10K
RUN A MARATHON (DEC. 6TH - MEMPHIS - ST JUDE)
Mississippi
posted: 10/10/2008 at 2:24 PM
Quote from BenBuck6 on 10/10/2008 at 2:00 PM:
We have a 73 year old exec that has lost 40% of his retirement in 2 weeks...and is now talking about working another 2 years, and he was going to retire in Jan. The only option to be safe in our 401k is a money market account, but it is unsecured.

Reaching that point and thinking you've done well with planning and saving and then this happens. I feel badly for him. It's such a shame.

"You're gonna wish these days hadn't gone by so fast. These are some good times so take a good look around. You may not know it now but you're gonna miss this" ~ Trace Adkins

RunningAhead.com Texas Independence Relay Team
jEfFgObLuE
Frustrating Project
 posted: 10/10/2008 at 2:29 PM
Quote from BenBuck6 on 10/10/2008 at 2:00 PM:
I also manage our companies 401k plan...OMG, there is NOTHING I can say.We have a 73 year old exec that has lost 40% of his retirement in 2 weeks...and is now talking about working another 2 years, and he was going to retire in Jan. The only option to be safe in our 401k is a money market account, but it is unsecured.


Serious question -- given how close to retirement the exec is, was he invested conservatively and still got hammered? Or had he not made the appropriate adjustments to his portfolio (i.e. when you're young, high risk / high reward is ok, but as you close in on retirement, go to more low risk stuff to maintain your savings). Just curious.
20th Century: 800m: 2:04 |1600m: 4:37 |3200m: 10:06 |5k: 16:23 |10k: 35:38 |15k: 54:20
25k: 1:35:59

21st Century: 5k: 19:42 |10k: 43:00

"Do not allow children to mix drinks. It is unseemly, and they use too much vermouth."
Steve Allen

Oswald acted alone.
arlahile
posted: 10/10/2008 at 2:33 PM
Quote from jEfFgObLuE on 10/10/2008 at 2:29 PM:
Serious question -- given how close to retirement the exec is, was he invested conservatively and still got hammered? Or had he not made the appropriate adjustments to his portfolio (i.e. when you're young, high risk / high reward is ok, but as you close in on retirement, go to more low risk stuff to maintain your savings). Just curious.


+1

Arla
Join fellow "40s on the run" in the Masters Group forum
Mississippi
posted: 10/10/2008 at 2:33 PM
Quote from jEfFgObLuE on 10/10/2008 at 2:29 PM:
Serious question -- given how close to retirement the exec is, was he invested conservatively and still got hammered? Or had he not made the appropriate adjustments to his portfolio (i.e. when you're young, high risk / high reward is ok, but as you close in on retirement, go to more low risk stuff to maintain your savings). Just curious.


Good question. I've been watching some of our investments being hit hard, some of them are okay in comparison (still losing though). We are very conservative with our choices and are low risk but STILL, we're feeling it. We've got many years ahead to make up for the loss (hopefully) so we're keeping our fingers crossed.
"You're gonna wish these days hadn't gone by so fast. These are some good times so take a good look around. You may not know it now but you're gonna miss this" ~ Trace Adkins

RunningAhead.com Texas Independence Relay Team
BenBuck6
posted: 10/10/2008 at 2:36 PM
I honestly wanto to cry when I think about him. The weird thing is...he is the company "expert" on the market. Everyone asks where he has his money and they pretty much follow suit...80% of our participants follow exactly what he says...so it's not like he doesn't know what is going on.

Now he is stuck...he can't sell off w/o taking a huge loss. His only option is to hope this turns around in a few months.

People like me (36 years old)...I will be in the plan for 20-30 more years, to me it is money I have never seen and never benefited from anyway, so I have time to ride the wave (I actually have increased my contributions)...but I get sick to my stomach when I think of the millions of folks that just had their near retirement wrecked by this.
2008 GOALS

GET BELOW 175 (at 175 now)
RUN 6:00 MILE (at 6:29)
RUN BELOW 25:30 5K
RUN BELOW 55:00 10K
RUN A MARATHON (DEC. 6TH - MEMPHIS - ST JUDE)
BenBuck6
posted: 10/10/2008 at 2:44 PM
he has his money spread out...he has military retirement...some CD's...but his 401k is probaly the most liquid of all his savings (maybe not - I don't know how his military retirement works).

He invested alot into a properties fund, which he though would be his safe bet during a market downturn...but of course it has gotten slammed pretty good too.

I dont know about all of his portfolio, but his 401k does have a moderate risk factor (the biggest problem was when I looked at what stocks his mutual funds consisted of...I kept seeing the names Lehman, Sacs-Goldman, and AIG in almost ALL of them, of course there were 50 more companies along with them)
2008 GOALS

GET BELOW 175 (at 175 now)
RUN 6:00 MILE (at 6:29)
RUN BELOW 25:30 5K
RUN BELOW 55:00 10K
RUN A MARATHON (DEC. 6TH - MEMPHIS - ST JUDE)
dgb2n
Dave
 posted: 10/10/2008 at 3:37 PM
Tough story to hear, Ben.

I've never felt better about having a military retirement.

FWIW, a military retirement is a traditional pension. It dies when you do but you're guaranteed a certain percentage of your base pay (that gets higher for every year past 20 years of service) plus an annual inflation adjustment for the rest of your life. And you draw it starting when you retire, not when you turn a certain age (for active duty).

Only downside is you pass nothing to your kids from it.

I've seen some analysis that says to treat it as essentially a fixed income investment and that your colleague was probably reasonable in taking greater equity exposure in the remainder of his portfolio. Of course, nothing looks reasonable now.

I ran a mile and I liked it, liked it, liked it.

dgb2n@yahoo.com
celiacChris
Village Idiot
 posted: 10/10/2008 at 3:52 PM
That is so sad to hear! A lot of people have been beaten back badly and I've spent the last few weeks working on calming client panic (even though my area of finance is outside the public space).

I'm sorry for anyone here close to retirement-personally, I believe it will be a while before the markets recover. My father is likely putting off his retirement for the same reasons.

The only advice I have is to not panic and see your financial advisor, if you are not comfortable with this stuff.
Chris
5K PR: 27:22 (1/1/09)
10k PR: 57:34 (12/7/08)
HM PR: 2:09:24 (9/21/08)

2009 Goals Run 1500 miles
Run a Marathon in May and MCM in October
PR at all distances
Ennay
Bif! Bam! Pow!
 posted: 10/10/2008 at 5:45 PM
Ugh.

I know the problem at a lot of 401K plans is the choices for close to retirement safer investments are very limited. Unsecured money markets like Ben said. Maybe ONE bond fund. Corporate retirement funds can be tricky that way, you can't withdraw your money completely or you get slammed by taxes, but the choices for safer investments are so limited.

I'm glad my mom is on fixed pension. Now if she would only learn to live within her means.

I'm buying in more right now. Good to be youngish.
Beware the Pink Boxing Gloves of DOOM!
"It's not enough to bash in heads, you've got to bash in minds" - Captain Hammer
2009 Goals New PR's in 5K 10K HM M
I failed the 12 minute run in 11th grade...
cgerber
posted: 10/10/2008 at 6:09 PM
"The time to buy is when there is blood in the streets."
- Baron Phillipe Rothschild

I've lost 50% of my portfolio this year, but it's all on sale now... buying it up like it is 2 for 1 day at the dollar store.
Ennay
Bif! Bam! Pow!
 posted: 10/10/2008 at 6:48 PM
ack...dh is panicking and wants to sell sell sell and shove it all under a mattress. Roll eyes
Beware the Pink Boxing Gloves of DOOM!
"It's not enough to bash in heads, you've got to bash in minds" - Captain Hammer
2009 Goals New PR's in 5K 10K HM M
I failed the 12 minute run in 11th grade...
celiacChris
Village Idiot
 posted: 10/10/2008 at 7:14 PM
Quote from Ennay on 10/10/2008 at 6:48 PM:
ack...dh is panicking and wants to sell sell sell and shove it all under a mattress. Roll eyes


Ack! Stay strong and don't let him be crazy.
Chris
5K PR: 27:22 (1/1/09)
10k PR: 57:34 (12/7/08)
HM PR: 2:09:24 (9/21/08)

2009 Goals Run 1500 miles
Run a Marathon in May and MCM in October
PR at all distances
joe_h
posted: 10/10/2008 at 7:15 PM
wow another bad day. so happy I have decades before i retire - plenty of time for me to hit the powerball Yes
Rule #1 for training and racing - If momma ain't happy nobody is happy http://www.athletefocus.com/athlete/Joeh
JVol44
Running Man
 posted: 10/11/2008 at 1:04 AM
Quote from dgb2n on 10/10/2008 at 3:37 PM:
Tough story to hear, Ben.

I've never felt better about having a military retirement.


+1
"You can't have everything. Where would you put it?" - Steven Wright
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