Comments on: 401k Recession Fears? Recession proof your 401k - another take http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/ Personal Finance, career, investing, retirement, saving and debt blog Sat, 13 Mar 2010 18:58:09 +0000 http://wordpress.org/?v=2.3.3 By: IRA and 401k » Blog Archive » 401k Recession Fears? Recession proof your 401k - another take http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-747 IRA and 401k » Blog Archive » 401k Recession Fears? Recession proof your 401k - another take Fri, 21 Mar 2008 05:58:18 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-747 [...] Moneymonk wrote an interesting post today onHere’s a quick excerpt401k Recession. Those two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long … [...] […] Moneymonk wrote an interesting post today onHere’s a quick excerpt401k Recession. Those two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long … […]

]]> By: How much money do I need » Blog Archive » 401k Recession Fears? Recession proof your 401k - another take http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-743 How much money do I need » Blog Archive » 401k Recession Fears? Recession proof your 401k - another take Thu, 20 Mar 2008 16:34:38 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-743 [...] Steve Hulett wrote an interesting post today onHere’s a quick excerpt401k Recession. Those two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long … [...] […] Steve Hulett wrote an interesting post today onHere’s a quick excerpt401k Recession. Those two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long … […]

]]> By:   401k Recession Fears? Recession proof your 401k - another take — IRA 401k http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-674   401k Recession Fears? Recession proof your 401k - another take — IRA 401k Fri, 14 Mar 2008 05:58:31 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-674 [...] Jeremy wrote an interesting post today onHere’s a quick excerpt401k Recession. Those two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long … [...] […] Jeremy wrote an interesting post today onHere’s a quick excerpt401k Recession. Those two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long … […]

]]> By: Jesse http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-632 Jesse Wed, 12 Mar 2008 17:08:06 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-632 Thanks for the comment Paul. I am actually not looking for tax efficiency in index funds. Index funds are great for two reasons: 1) Low fees. Most mutual funds have much higher fees than index funds. 2) Long term stable returns. 85% of mutual funds fail to beat the market. Some beat it for 1 year, 5 years, maybe even more but over the course of 20-30-40 years as the case may be its VERY difficult to find a fund that will beat the market - especially once fees are subtracted Thanks for the comment Paul. I am actually not looking for tax efficiency in index funds. Index funds are great for two reasons:
1) Low fees. Most mutual funds have much higher fees than index funds.
2) Long term stable returns. 85% of mutual funds fail to beat the market. Some beat it for 1 year, 5 years, maybe even more but over the course of 20-30-40 years as the case may be its VERY difficult to find a fund that will beat the market - especially once fees are subtracted

]]> By: Paul Petillo http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-631 Paul Petillo Wed, 12 Mar 2008 17:00:24 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-631 I have to disagree. At no time should you have something as tax efficient as an index fund inside of a tax-deferred account. Regardless of a recession, which provides an excellent opportunity to purchase fund shares at a discounted rate. As for that index fund, keep it outside your retirement portfolio because, in the current tax climate, paying 15% on gains is probably much better than what you might gain ten, twenty or thirty years from now. Inside that 401(k), look for funds that are not only no-load as you suggest, but have low expenses compared to similar funds in the same group and lower than average turnover. Both of those factors impact net return. Recessions impact everyday life much the way inflation does. They do not or should not affect how you save for your future. I have to disagree. At no time should you have something as tax efficient as an index fund inside of a tax-deferred account. Regardless of a recession, which provides an excellent opportunity to purchase fund shares at a discounted rate. As for that index fund, keep it outside your retirement portfolio because, in the current tax climate, paying 15% on gains is probably much better than what you might gain ten, twenty or thirty years from now.

Inside that 401(k), look for funds that are not only no-load as you suggest, but have low expenses compared to similar funds in the same group and lower than average turnover. Both of those factors impact net return.

Recessions impact everyday life much the way inflation does.

They do not or should not affect how you save for your future.

]]> By: Tax Preparation, Tax Software, Financial Regrets @ The Roundup http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-579 Tax Preparation, Tax Software, Financial Regrets @ The Roundup Sun, 09 Mar 2008 17:16:10 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-579 [...] 401k Recession Fears? Recession proof your 401k - another take @ The Penny Saved [...] […] 401k Recession Fears? Recession proof your 401k - another take @ The Penny Saved […]

]]> By: Personal Finance http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-572 Personal Finance Sun, 09 Mar 2008 11:03:45 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-572 [...] youngragingbull wrote an interesting post today onHere’s a quick excerptThose two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long term” which is … [...] […] youngragingbull wrote an interesting post today onHere’s a quick excerptThose two words are currently the most searched personal finance words and we can all understand why. There is the threat of recession looming and everyone wants to know, above all, “how is this going to affect me long term” which is … […]

]]> By: Prime Time Money: Big Winner Roundup | Prime Time Money http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-571 Prime Time Money: Big Winner Roundup | Prime Time Money Sun, 09 Mar 2008 05:39:49 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-571 [...] The Penny Saved talks about making your 401k recession-proof. [...] […] The Penny Saved talks about making your 401k recession-proof. […]

]]> By: Temporary Test Blog » Blog Archive » 401k Recession Fears? Recession proof your 401k - another take http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-525 Temporary Test Blog » Blog Archive » 401k Recession Fears? Recession proof your 401k - another take Sat, 08 Mar 2008 18:53:16 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-525 [...] Original post by Jesse [...] […] Original post by Jesse […]

]]> By: Access Your Money » 401k Recession Fears? Recession proof your 401k - another take http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-523 Access Your Money » 401k Recession Fears? Recession proof your 401k - another take Sat, 08 Mar 2008 18:47:41 +0000 http://thepennysaved.com/2008/03/08/401k-recession-fears-recession-proof-your-401k-another-take/#comment-523 [...] 401k Recession Fears? Recession proof your 401k - another take [...] […] 401k Recession Fears? Recession proof your 401k - another take […]

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