Weird Feeling Today

[CatFan]

I pulled the ripcord on my 401K and moved mostly out of the market. Transactions don't process until the end of the day so I was watching the market like a hawk all afternoon.

I screwed up by being too conservative early on, but I gained a lot by holding my breath and riding the market down through the fall of 2008 and moving my more conservative investments into the market in April of 2009 just missing the bottom. Many people I know lost 25% or more of their retirement savings by panicking and pulling out of the market when it started down, then waiting until it was really climbing before moving back in.

I hope I'm not missing a big top, but I'm only two years max from retirement and I couldn't see being fully exposed any longer.

[boneil]

IMHO, good on you for not getting scared out of your 401K this past year by all the TV experts so close to retirement. With being so close to retirement, I would have moved to more defensive, conservative holdings. If you no longer own any stocks, then don't watch the market. If we rise another 20% over the next two years, you don't want to waste time regretting your decision. All that matters is you being able to enjoy retirement.

[CatFan]

IMHO, good on you for not getting scared out of your 401K this past year by all the TV experts so close to retirement. With being so close to retirement, I would have moved to more defensive, conservative holdings. If you no longer own any stocks, then don't watch the market. If we rise another 20% over the next two years, you don't want to waste time regretting your decision. All that matters is you being able to enjoy retirement.

Seems like most of the big investing mistakes I've witnessed have been from panicking on a falling market rather than being bullish. Watched a family friend ignore everyone's advice in 1987 and pull all his money out of the market on October 20th at the rock bottom low. Cost him hundreds of thousands and he never went back into the market.

I still own stocks, but not on the scale of my 401K. The 401 was mostly growth, and everything I own individually is a dividend paying bluish-chip corporation that I felt was unduly depressed at the time I bought it.

[janky]

and everything I own individually is a dividend paying bluish-chip corporation that I felt was unduly depressed at the time I bought it.

Treat these as rent houses. Don't worry about the fluctuation in value as long as they are still paying you rent. Over time they will appreciate.