Lux Investing

Currently, I am investing 100% of my 401k in MetLife Stable Value fund,?

I stopped putting money into Vanguard index fund when it got down to half of what it was when I started my 401k. But I don't know really anything about stable value, but I think it's not supposed to ever lose money. Can that be right? And, I've not seen any gains, either. How can I know if I'm making (or losing) money here? I didn't move any money that was already invested. I only changed future elections.

Public Comments

1. I don't know anything about your fund, but I do know that you should NEVER put 100% of your money in one thing!
2. Check the performance of the fund online.
3. I worked as a customer rep for Met life for a bit. You need to call 1-800 MET LIFE (that's 1-800-638-5433) and talk to one of the people in Rhode Island or Oklahoma (that is where the calls are taken at). Right now in this deep recession I would re-evaluate your finances and pull some money out. Met life doesn't have a great track record and could really care less about you in the end. Last year they cut off thousands of employees of Bridge stone Tire and Kodak film as well as some others life and medical insurance coverage for their retirees. Frankly I would get completely away from Metlife and get to a better company. Also talk to your local investment accountant or banker they can help you a lot more than what you can get here on yahoo answers.
4. First of all, you should never have all your funds in 1 mutual fund. 2nd, if your company has an option to buy company stock, that is where a large portion of your contribution should be going. Stock prices are at near record lows, which means you will be buying more shares. 3rd, Vanguard is one of the best mutual fund companies out there. Without knowing all the options of your 401k from your employer, its difficult to answer.
5. You are completely nuts. The price of your index fund shares (which you are presumably buying intending to sell them at some far-off future date) went down, so you STOPPED buying them? That makes no sense at all! If you believe they will go back up some day, you should be buying MORE while they are "on sale"....if you don't believe they will ever go back up, you should just sell them! If you are young, you should be buying the most volatile, highest-potential-return funds available to you in your 401(k)...since it is equal dollar amount investments, that way you buy extra when shares are under-priced and fewer when they are over-priced... Invest with your brain, not with your heart!
6. I am not familiar with MetLife funds, but I would imagine that it is a money market fund. They do in general have stable value although there was a very big deal about 6 months ago when a certain money market fund did loose value, so it is a possibility although it should not happen. Annual returns from money market funds currently is very low, about 1.0% annually or perhaps even less. These are very difficult times for investors and for even non-investors too. It is extremely difficult to know the correct course to take. Although I think it is wise for you to have a certain portion of you 401k in a stable investment option, I also believe that it would be to your advantage to continue to contribute to the index fund. After all you would be investing at a much lower price than you were--50% lower--so the chance of regaining your losses will be better in the long run by continuing your contributions--maybe.
7. In nowadays market crisis / status, If you are serious to invest and have no intention to lose your money, you can google for HSFX Asset Management and start making consistent profits!