Anyone made changes to their retirement accounts?

[DCLMP]

This is short term money management. You don't invest anything you aren't willing to lose, in my opinion. Here's an example:

College will cost 50k a year 2 years from now.
I have 50k to pay for one year.
I invest the 50k in an index fund right now.
Market continues to go down, and in 2 years when I need the money I have lost, let's say, 25%
- Now it's time to pay for college. I no longer have 50k. I now have a short fall of $12,500. I now have to take out a student loan, where 2 years ago I had the full 50k to pay for college for one year.


August 28, 2008, the S&P 500 fell 48 percent in a little over six months to its low on March 9, 2009. It took seven years to recover.

**Long term investing is necessary to keep up with inflation, but if needed within 5 years I do not risk my cash. **

As a long term investment it’s worthless in the short term it makes sense.

 

[DCLMP]

Also, doesn't an emergency fund need to be liquid, as well? If you live in a high col area, that emergency fund for 1 year's living expenses can be quite a lot.

I thought the thread was about retirement savings not emergency funds???

 

[DCLMP]

I agree that rate changes will do nothing to help but I doubt changes are lasting

IMO US is in a battle of wills both internally and externally and we the people are just getting hit with debris from price battles so we all just have to wait until someone cries uncle under the weight of losses that are either financial or public opinion - until then we are just fish in a barrel.

I don’t think there’s a way out. Way too much debt along with commodities shortages. They can raise rates cause a recession, but eventually they’ll have to stimulate again. They can continue try to inflate away the debt, you can see where that leads
This is the first time we’ve been down this road with a fiat currency. I believe we’re in for a rough decade most likely another war. Maybe a new currency eventually. In the short term the US dollar will continue to rise against other currencies. It’s still the prettiest bell at the ball. Stocking up on food is always a good idea.

 

[mefordis]

I thought the thread was about retirement savings not emergency funds???

True. Sorry I got off track.

 

[goofy4prez]

I feel that holding any debt is very dangerous in my opinion and robbing my family of wealth, so this is where we have been pouring ALL our effort. Removing every trace of debt and getting rid of scenarios where we are paying interest is our current quest, it's coming along nicely and what I am teaching our kids to do so they can build wealth early in stable ways.

I

When people get old the ONLY thing we are allowed to keep is our homes so I want a moderate one in a stable place as a good investment and as a safe place to keep our money so we'll pick something and ready it to age in place.


Slow and steady wins the race is my new mantra.

These are all sentiments that I have always believed in. They are what I have lived by. And they are what I have always advised others when I had my agency. I'll be retiring in about 10 years. I have no debt. I hold to the practice of slow and steady. And my wife and I just sold our house, downsized and moved into a very nice, but smaller ranch home of 2100 sq ft and have a zero balance heading into our final chapter of life very soon. You have a nice plan congrats on your wise choices in your journey called life.

 

[DCLMP]

Our losses have been mitigated since we own so many oil and gas stocks. We purchased them way before Russia invaded Ukraine.

We are even so far. I like physical assets my dh has dipped into mining stocks I guess we’ll see how that works out. I don’t think you can wrong with oil stocks or other commodities. If your morale compass will allow it I think defense contractors would be a good bet.

 

[Dan Murphy]

True. Sorry I got off track.

Emergency funds definitely complement retirement funds, helping to be able to leave retirement funds alone in tough times.

 

[dvcgirl67]

Emergency funds definitely complement retirement funds, helping to be able to leave retirement funds alone in tough times.

Agree...emergency funds aka....cash, are part of many retirement savings plans, especially those who are getting close.

On another front, wonder how Fidelity is feeling today about their decision to allow people to buy bitcoin in their 401Ks.

 

[_19disnA]

I would consider 'emergency funds' one element of your overall financial situation. If your HVAC suddenly needs to be replaced and you have -0- emergency funds for such things, then you might need to tap into your investments and sell in a down market. If you have no investments, then clearly your 'emergency funds' would be a significant part of your overall financial situation.

 

[DCLMP]

I would consider 'emergency funds' one element of your overall financial situation. If your HVAC suddenly needs to be replaced and you have -0- emergency funds for such things, then you might need to tap into your investments and sell in a down market. If you have no investments, then clearly your 'emergency funds' would be a significant part of your overall financial situation.

Agreed, but I don't think anyone that has an emergency fund cash fund is worried about it crashing. The unfortunate situation is the majority of the population doesn't have either a retirement account or an emergency fund. There's going to be a lot of panic in this country and I don't think the governments going to be giving handouts as they did in 20 and 21.

 

[tvguy]

Me, IRAs no. 401k, no, except to roll all my money out into IRAs when I retired last year.

My wife, IRAs, no. 401k, yes. About 10 years ago her balance hit a level that she and our financial advisor felt would be more money that she would ever reasonably need in retirement. Against our financial advisor's advice, she moved everything from stocks into money markets because she did not want to risk losing any principal. Her balance was safe until she rolled the money out into an IRA last year when she retired. However, IF she had left her money in the same stock funds, she would have had a balance that was $250,000 more.
But the stock market is not something you jump in and out of. Our IRA stock investment funds have not changed in 40 years, and we have NEVER lost money. Now, in 2009, we only made 1% for the year, but we never lost money.

 

[DLgal]

Letting it ride. Our money (Roth IRA, TSP, Brokerage account, 529s) is 100% invested in stock based ETFs right now. It's money we shouldn't actually need in retirement anyway, but it will replace our life insurance policies that expire in 25 years that is earmarked for our adult disabled children.

Over time, the stock market has always gone up.

 

[goofy4prez]

Agreed, but I don't think anyone that has an emergency fund cash fund is worried about it crashing. The unfortunate situation is the majority of the population doesn't have either a retirement account or an emergency fund. There's going to be a lot of panic in this country and I don't think the governments going to be giving handouts as they did in 20 and 21.

This is spot on. There is no way the government can keep on passing out handouts like its bite-size Snicker Bars on Halloween. but with that said, I'm more worried that we will have some semblance of a government and a country as we have known. Even with its imperfections, it's still one of the best in the world.

 

[LuvOrlando]

This is spot on. There is no way the government can keep on passing out handouts like its bite-size Snicker Bars on Halloween. but with that said, I'm more worried that we will have some semblance of a government and a country as we have known. Even with its imperfections, it's still one of the best in the world.

But no-one in my lifetime has ever stopped doing handing something to someone, at this point all we are doing is selecting where it goes and to be perfectly honest I am thrilled it went to Americans because no-one lost homes or jobs so that's a win, even if we are paying more I'm ok with that - I don't love it but I'm ok with it.

To be clear neither myself nor a single soul in my family got a single dime from all that, however, I am thrilled that this time around none of my friends or my kids friends families ended up homeless like the last time. This has to count for something, it does for me.

I wish it was spend or save but zero out in the game save, they just redirect.

 

[randumb0]

I am nowhere near retirement so there is no need for me to move my money

 

[goofy4prez]

But no-one in my lifetime has ever stopped doing handing something to someone, at this point all we are doing is selecting where it goes and to be perfectly honest I am thrilled it went to Americans because no-one lost homes or jobs so that's a win, even if we are paying more I'm ok with that - I don't love it but I'm ok with it.

To be clear neither myself nor a single soul in my family got a single dime from all that, however, I am thrilled that this time around none of my friends or my kids friends families ended up homeless like the last time. This has to count for something, it does for me.

I wish it was spend or save but zero out in the game save, they just redirect.

Over the years I have agreed with so much of what you have shared and posted. On this one, we will just have to respectfully agree to disagree. While I'm glad like you, the stimulus money was going to Americans as well, it was just a bandage on a stab wound. Nor should it have ever been necessary. The economy (small business) never should have been shut down to begin with for as long as it was, therefore handouts would have never been needed. The shutdown and the handouts, while they may have helped a little bit at the time, it is part of why we are entering into what I believe is going to be a recession like I have never seen in my 58 years of life. And if Washington decides to hand out even more money in student loan forgiveness, it's going to be even worse.

I'm just thankful over the years I tucked money aside, invested (stayed the course without market panic), lived within my means, rebounded from a good-paying job loss in my 30s, and planned for retirement instead of charging, buying more, and saving little. It is going to be a very rough road over the next few years. I'm afraid what we are going to see is just what I have been afraid would happen sooner or later. Sorry to be pessimistic on this one, I truly hope I'm wrong. How was this paragraph for bringing it all back onto topic?

 

[DCLMP]

This is spot on. There is no way the government can keep on passing out handouts like its bite-size Snicker Bars on Halloween. but with that said, I'm more worried that we will have some semblance of a government and a country as we have known. Even with its imperfections, it's still one of the best in the world.

I worry about the people that can't afford to buy food or heat their homes and what that is going to do to our country. We may still be one of the best in the world, but when you look around that's not saying much.

 

[DCLMP]

Over the years I have agreed with so much of what you have shared and posted. On this one, we will just have to respectfully agree to disagree. While I'm glad like you, the stimulus money was going to Americans as well, it was just a bandage on a stab wound. Nor should it have ever been necessary. The economy (small business) never should have been shut down to begin with for as long as it was, therefore handouts would have never been needed. The shutdown and the handouts, while they may have helped a little bit at the time, it is part of why we are entering into what I believe is going to be a recession like I have never seen in my 58 years of life. And if Washington decides to hand out even more money in student loan forgiveness, it's going to be even worse.

I'm just thankful over the years I tucked money aside, invested (stayed the course without market panic), lived within my means, rebounded from a good-paying job loss in my 30s, and planned for retirement instead of charging, buying more, and saving little. It is going to be a very rough road over the next few years. I'm afraid what we are going to see is just what I have been afraid would happen sooner or later. Sorry to be pessimistic on this one, I truly hope I'm wrong. How was this paragraph for bringing it all back onto topic?

We have so much debt I don't think it even matters anymore. It's all going to implode. When I don't know, but I think we crossed the point of no return.

 

[soccerdad72]

As far as I know, we have not made any changes - we just met with our financial advisors and they said we're still on track to retire when we want to.

 

[tvguy]

I worry about the people that can't afford to buy food or heat their homes and what that is going to do to our country. We may still be one of the best in the world, but when you look around that's not saying much.

I agree but what really concerns me is how many people who say they can't afford to buy food or heat (or more importantly here, cool) their homes........but really can. They just choose to spend money on things they don't need instead.