Finance and Economics > Investing and Saving

Increasing 401k

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This may just be me...but I just increased my 401k contribution.  Why?  Buy low, sell high.  If we stay in a downturn over the next few years, I want to be buying into the market when it's low, so that when it goes back up I can benifit.

I'd rather be getting more into the market when it's crap than when it is peaking.

Just my opinion and actions, thoughts?

I am seriously thinking about picking up some individual stocks.  I think the trick is to find stocks that are down 30% or more but really don't have any marbles in this crisis.  Microsoft comes to mind as well as others like Walmart and Costco.

I think what you want to find are solid companies with little debt, great revenue and low P/E ratios that sell stuff that will always be in demand.

I am also looking at royalty trusts but am having a difficult time with understanding how to evaluate their financials as they are a completely different beast.

So yes, I think there are some great deals to be had right now if you have the guts and do your homework.  For mutual funds, you may want to look at funds with managers that have been around for a long time and see what they did during the last two recoveries.

Need to focus on Price to Earnings ratio.  Not a guarantee, but on average, it serves well.

Right now think Dividends!  Profitable companies paying good dividends are on sale CHEAP.  Hence even if they don't rebound soon you still get a quarterly return.  That said my money is going heavily into ING Direct right not, I may not pick the exact bottom but I know this ain't it yet.

I've had to borrow a tin foil hat to post this, but do you think it's possible that with the way things are going, we could be headed down a road that is going to take us someplace we've never been before?  Have you thought that you might be throwing your money out the window?  For the time being, I have stopped my 401 contribution, haven't taken any money out of it, but with the money that would have been my contribution, I've been buying silver coins.


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