I pulled back to safe about 8 months back before things got too shitty. I lost about 2K at that point. I have about 30k to play with and when i suspect we're near bottom I'll take some risks. We're not done falling yet but I imagine we are close... especially if oil keeps dropping.

At this time we are putting all excess funds, along with some CD's that are maturing this month on the mortgage.

Some people don't think this is smart. They say to invest the funds. The way I look at it is, with a 5% loan, I would have to make 8% in the market to break even, after taxes.

Who can GUARANTEE a 8% zero risk return right now? No one, except paying off the house.

We have just under 100K left on the mortgage and plan to have it knocked out in less than four years. We put an extra $10K to it already this year and another $20K this month when the CD's mature.

I can't think of a better feeling than complete security with everything paid off. Don't have to worry about one of us losing a job and not being able to cover the bills.

If you have a lot of money saved in your current 401k, NOW is a good time to change jobs IF you are sure you'll have at least as much job security in your new job, BECAUSE you can move your 401k into a "rollover 401k" account tax free. Let me explain. (You open a "rollover 401k" account in a brokerage and continute to manage your money, though you can't contribute to it. It will be independent of your new employers 401k.

The typical 401k has NO PROTECTION against a hyperinflationary crash. There are typically NO choices available that are safe against simulataneous INFLATION and a worldwide stock market crash.

We WILL have massive inflation over the next few years because of the bailouts. Whenever the Fed loans money it CREATES it out of nothing, diluting the existing money supply, creating inflation. This is how our monetary system works. The Fed has recently expanded the monetary base at unprecedented amounts.

http://www.garynorth.com/public/4121.cfm

If you keep your money in cash over the next several years, it WILL be severely eroded by inflation.

Typical ways to protect your money include foreign currency accounts, foreign currency bonds, and gold. The typical 401k account does NOT have these options. The typical brokerage that can host a "rollover 401k" account DOES.

joe, if you change jobs and do a rollover from your previous 401k into an IRA, there is no tax or penalty. Are you thinking Roth IRA?

rolling from and into both approved retirement accounts is untaxable until you withdraw the money at retirement. assuming traditional IRA.

I did just this because I didnt want my previous 401k in the new 401k plan. I wanted more flexibility.

NEW STOCK MARKET TERMS

CEO --Chief Embezzlement Officer.
CFO--Corporate Fraud Officer.
BULL MARKET -- A random market movement causing an investor to mistake
himself for a financial genius.
BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the
wife gets no jewelry, and the husband gets no sex.
VALUE INVESTING -- The art of buying low and selling lower.
P/E RATIO -- The percentage of investors wetting their pants as the market
keeps crashing.
BROKER -- What my broker has made me.
STANDARD & POOR -- Your life in a nutshell.
STOCK ANALYST -- Idiot who just downgraded your stock.
STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally
between themselves.
FINANCIAL PLANNER -- A guy whose phone has been disconnected.
MARKET CORRECTION -- The day after you buy stocks.
CASH FLOW-- The movement your money makes as it disappears down the toilet.
YAHOO -- What you yell after selling it to some poor sucker for $240 per
share.
WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @
$240 per share.

^ lol