BLACK

20 years or so ago I was talked into investing in a 401k. With my situation at the time I took the option to catch up and invested almost all my income for over a month, or was it two, into the 401k. I had a fair amount of money in the market but then October 19th 1987, aka BLACK TUESDAY, came along and stole over halve my money, just up and stole it.



Now our financial guy from where I worked said 401ks were great. You were able to put in tax free money and let that extra money work for you. The investment generally recovers if there are problems, while the markets are high your money is really multiplying, while the markets are low you are able to purchase more stock than you normally can and, once the markets bounce back, you will have more stock to multiply.

By the time I left the company at the end of 1988 my stock had indeed bounced back but not much more but still, I was happy. The new company I work for offered 401k so I jumped in with both feet. A certain percent of my pay goes into it every pay that way should I ever get a raise the amount of money I invest also goes up. It has been working out very well for me.

Then along came 2001 and the markets were doing terrible for some time. Then September 11 happened and so many people lost their lives. The towers fell and the markets went down with them. Some people were hit hard by that, me not as much but still it took forever for things to recover. But during that time things moved forward. Stocks were low and I was able to invest in more stock than I normally could. In the end I finally recovered from this and was doing OK once again and then yesterday.

Yesterday the stock markets took a beating. They were down over 500 points but ended the day a bit better then that. So I printed off my 401k balance so today I can see how bad it really was and, once again buy more depressed stock and wait for things to get better.

I do recognize a pattern however. Black Tuesday back in 1987 was of course a Tuesday. September 11, 2001 was a Tuesday and finally yesterday was again a Tuesday. Looking back the great crash in 1929 was also a Tuesday. I wonder if I can withdraw all my money on Monday nights and hold on to it for a day until Wednesday and the reinvest it again. I would be so much further ahead.

Anyway since it was on my mind I thought I would mention it. Despite the fact that days like yesterday happen, 401k are a bargain. If your company offers one to you consider taking advantage of if. If they offer a match program in 401k then take maximum advantage of what they offer.

They say that if you were to invest money in 401k from the age of 20 to the age of 30, x amount of dollars every pay period, and not invest another penny you would have the same amount or more money then the person that started investing at age 30 and kept investing the same x amount of dollars every pay period until they retire. It really is a good thing to do and the earlier you can get involved, even if it is not very much money, in the long run you will hardly miss the money and you will be surprised how much money you have. When I retire I will not be rich beyond all belief but I will be much better off than I would have been.

Now let me go lick my wounds and see if there is not a way to keep pulling my money out of the market on Tuesdays. Apparently, at least in the stock market, Tuesdays are the new Monday.

Happy hump day.


Ohhh! That was a *horrendous* crash! –The Dukes of Hazzard