investment advice.

[ksniperfox]

a few ground rules:
-i make decent $, my job isnt going anywhere anytime soon
-i actively invest into multiple 401k funds through payroll deductions/employer matching, and they are decreasing in value daily.(but not less than i have invested.)
-i bank with bank of america
-im aware that my next question, if followed by the masses, is not a good investment decision in general.


anyways, anyone think the economy will get so bad soon that the big banks will go down? whats the threshold to make me consider getting paper checks and cashing them(and using the mattress bank lol) as opposed to direct deposit? and the threshold at which i should turn off my 401k, or redirect my funds and to where?

i dont want everything to go out of business and my $ go with it, and i realize that a lot of people fear that also, and if everyone pulls the $ out, people go out of business.

mr Kidd and tony feel encouraged to post up. +3 i think for any advice/thoughts you can share.

[ironchef]

Your money in the bank is FDIC insured for upto $100k, and the big banks going under is highly unlikely. Big investment banks on the other hand are a different story.

Ideally, the younger you are the more money you want to put into higher risk/speculative investment devices like individual stocks, emerging market mutual funds, etc etc, and gradually as you get older decrease your risk through the purchase of things like bonds, treasuries, cd's, etc.

Also start a Roth IRA. And if you seriously want to invest some real dough, like say $10k+, speak with a certified and quality financial planner. No one on IA, besides maybe 1-2 people, is going to be a certified financial planner.

More risk = potentially way more reward.

[Vteckidd]

Its not cause for panic yet, Ironchef is right the INVESTMENT BANKS are what are folding. Unless that reaches the bigger banks like BoA or Wells Fargo or JP Morgan id hold off on pulling money out.

I bank with WAMU the biggest savings and loan in the country and its abour ready to go. They are desperately ytying to find a buyer, but its FDIC INSURED.

Now heres the problem the FDIC only has enough money to cover 1/20th of the bank accounts out there. So if in the next 2-4 weeks we see a rapid closing of all the financial institutions, then , hate to cause a panic, but id pull any major money out .

As far as 401K, id leadve it, the market WILL rebound, and you are young, now is the time to buy as long as its a healthy stock.

[BanginJimmy]

I agree with the others. Now is actually a pretty good time to buy financials if you plan on sitting on them. Most of the bigger banks, as stated already NOT INVESTMENT BANKS, are going to rebound. It isnt going to happen overnight, but as soon as the credit problems clear up these banks will start to make huge gains to get back to where they should have been to start with.

[blaknoize]

Also agreed with the above. Invest the money u will not touch in the long run (4-10yrs+) in the higher risk stock market. And have money put away in the less riskier no-load mutual fund category. Thats at least what I'ma do.

Also, check out this book: "The Only Investment Guide You Will Ever Need; Andrew Tobias" PACKED with tips and tricks and loads of info for the avid young investor. Since I'm just about to start investing, I cant speak from experience or tell u anything about risk per say.