Readers give more yeas and nays on 401(k)s

The stock market is up!

Oh, wait. Now it's down again.

Aaargh. Who can figure this thing out?

Even though we don't know where the Dow will finish a year — or even a day — from now, readers' opinions on whether it is a good time to invest continue to roll in. And since I find them interesting, I'm going to share a few once again.

Scott sent me an e-mail to say he has put all of his 401(k) into company stock.

"Am I nervous? Oh, heck yes. But it's my opportunity to buy cheap and hold, hoping the market will eventually take off again," he wrote. "If so, I'll be in great shape. If not, well, there is the old rule, never invest what you can't afford to lose."

I've heard that one, too, Scott. But some people don't follow the old rules. For example, I've seen LOTS of people running with scissors at various times in my life.

Another reader, Gina, wrote in an e-mail that she has been participating in a 401(k) plan for more than 16 years.

"Over the years I have watched the market go up and down like a yo-yo," she wrote. "I am the type of person that sees the big picture. I have a lot of time on my side, so I never worry about what the market is doing.

"I am willing to stay the course. I wish I could invest more now that the stock market is 'on sale.' I feel that in the long run my 401(k) will do great, because I am being patient, and I am riding out the storm."

A person identified as "risk" posted a similar comment on the deseretnews.com Web site.

"We've forgotten that there's always been risk in the stock market," "risk" wrote. "People who can't stand to see their 401(k) drift with the stock market should put their money in funds that are 'safe.'

"Risk avoiders do stand to lose money, because they panic and move their money out when the stock market tanks and move it back in when prices are high — thus selling low and buying high … a perfect recipe for losing money. Actually, now is the time to buy while prices are low, because the stock market will be back!"

Another online poster, identified as "rh," is also riding out the storm.

"I think I was wise when I had to have a 401(k) at my current place of employment," "rh" wrote. "Instead of seeing it as a place to get rich, I regarded it as a savings account and took the safest way possible. I may not be getting rich, but I'm not losing my money, either."