Before You Hit the Panic Button Given What It's Been Smelling Like in 2015

[RapmasterD]

And I'm surprised nobody else posted this, or perhaps I sniffed too much glue this morning...but....

HEADLINE: 2014 WAS A VERY GOOD YEAR!

SUBHEADLINE: SPY Returned 13.46 Percent

Can I get an "amen brother" on that?

[Indexer]

It was pretty awesome.  I won't complain. 

Especially awesome since basically every market prediction called for less or worse.  Of course those same predictions called for oil to go up, bonds to tank, etc. 

I'm not hitting any panic buttons.  If 2014 proved anything its that you can't predict the future.  Buy low... sell high.  Its easy.  Buying today, everything looks to be on sale.

[iamlindoro]

I'll be thanking anyone who panics over what is literally less than a week of 2015's market behaviors for giving me some lovely sales.

[RapmasterD]

...behaviors that are clearly emotional....We'll be funking for another week or two. And I have nothing to base that opinion on, other than the melancholy post-New Year's souls I've been running into.

[h2ogal]

I boosted this payday's 401K witholding to the max = 50% of paycheck.  I figured I can max out my 401K contribution in 5 months.     

[MikeBear]

I boosted this payday's 401K witholding to the max = 50% of paycheck.  I figured I can max out my 401K contribution in 5 months.     

Make sure that doesn't cut you out of employer matching for the rest of the year... In some cases it could, depending on how they have that set up. You might need to speak to your HR person that handles it.

[gimp]

Yep, I can only do about 15% now and adjust later without screwing myself out of a match.

[dividendman]

Am I the only one who hates the tear the market has been on in the last couple of years? I want it to tank and then stay still for a couple years still while I'm accumulating money :(. When I stop then it should go up like crazy :P

I totally missed out on this massive market boom. I started working in 2007 so I didn't have much in assets at the start....boo! C'mon financial crisis, you can do it! Hopefully Oil goes to $1 and everyone freaks out or something. :)

[RapmasterD]

Am I the only one who hates the tear the market has been on in the last couple of years? I want it to tank and then stay still for a couple years still while I'm accumulating money :(. When I stop then it should go up like crazy :P

I totally missed out on this massive market boom. I started working in 2007 so I didn't have much in assets at the start....boo! C'mon financial crisis, you can do it! Hopefully Oil goes to $1 and everyone freaks out or something. :)

No, I'm not with you. If you started working in 2007 you have a very long horizon. Breathe deep. Think about folks (not me) who started working in late 1999 and lost their shit for the next decade.

[Roland of Gilead]

The market is a great investment right now because it is too big to fail.   Any significant drop will be met with great amounts of stimulus and money.  The alternative is failing pension funds and investment banks leading to the collapse of society.

Why wouldn't you take a bet where the Fed has magnets in all the black slots and the ball is steel?

[RichMoose]

Why wouldn't you take a bet where the Fed has magnets in all the black slots and the ball is steel?

Haha! This is exactly why I'm nervous to invest right now.

Despite this, I'm still investing because its what indexers with balanced portfolios do.

[Johnez]

Yep, I can only do about 15% now and adjust later without screwing myself out of a match.

Is this based on the fact that one could prematurely max out their 401k?  Maxing out early while employers match based on 52 weeks worth of paychecks?  I only ask because I have mine set up at 19% and will still fail to max this year.  I just don't want to bring any more complications than I need.

[gimp]

Yes, Johnez. I do 15% now to front-load, then reduce later to make sure I don't max it out before the last pay period, so I get the full match. My company only matches per pay period, not year - so if I do a front-load and max it in six months, I lose the other six months of matches. This is common, I think.

[h2ogal]

Regarding the question about maxing out early and also maxing company match....we have another thread on this topic also going here:

http://forum.mrmoneymustache.com/share-your-badassity/2015-401k-contribution-rate-please-chime-in!/

I found out that many companies do this very differently.  In the past where I worked, you had to contribute EVERY pay period or you missed out on the match for that pay period.  I assumed this was true for my current job also but recently found out that they do a 'true up' at the end of the year.  I only found out because I asked HR about it.