Anyone made changes to their retirement accounts?

[DCLMP]

Bit of hyperbole there.

Explain please.

 

[Pea-n-Me]

Homeless people have always seemed pretty harmless, but as they grow in numbers that could change...or just desperate people in general...maybe not even homeless.

I don’t think that’s the case anymore in some of these cities.

 

[DCLMP]

I don’t think that’s the case anymore in some of these cities.

True, I meant in the past it's always been mostly the mentally ill, but now the national average for a one-bedroom is 1800, combined with the cost of living and the potential for a drastic change in unemployment you could see a lot more desperate violent people. Petty theft and Car thefts have really increased in my city. I live in an upper-middle-class suburb. It was never the norm, but now it's the norm.

 

[dvcgirl67]

Bit of hyperbole there.

I agree. I mean, things are obviously very difficult for lower income earners right now and increasingly so for the middle class. The Fed is marching us into a recession, and so we can expect unemployment to go up....the stock market will likely bottom before that happens. We may get an economic jolt or two from Peter the Great Putin. And then we may be in for a longer period of recovery than we've been accustomed to as the Fed only has so much power and risks prolonging inflation if it returns to a quantitative easing strategy.

But this is where Dan Murphy would come in....and remind us all.....that during the Great Recession, when the economic news was truly awful, for well over a year, closer to 18 months......that Disney's attendance dropped by a whopping 5% at the worst of it. It seemed like we could go over the cliff at any moment in those 18 months....and Disney still had 95% of their guests running around the World.

We should all do more if we can to help our local food banks and organizations that help those on the edge....but the world will continue to spin.

 

[DCLMP]

I agree. I mean, things are obviously very difficult for lower income earners right now and increasingly so for the middle class. The Fed is marching us into a recession, and so we can expect unemployment to go up....the stock market will likely bottom before that happens. We may get an economic jolt or two from Peter the Great Putin. And then we may be in for a longer period of recovery than we've been accustomed to as the Fed only has so much power and risks prolonging inflation if it returns to a quantitative easing strategy.

But this is where Dan Murphy would come in....and remind us all.....that during the Great Recession, when the economic news was truly awful, for well over a year, closer to 18 months......that Disney's attendance dropped by a whopping 5% at the worst of it. It seemed like we could go over the cliff at any moment in those 18 months....and Disney still had 95% of their guests running around the World.

We should all do more if we can to help our local food banks and organizations that help those on the edge....but the world will continue to spin.

So show me some actual positive economic numbers other than the (world will continue to spin.) You can call my opinion crazy, hyperbolic or whatever, but than you offer nothing as proof.

 

[dvcgirl67]

So show me some actual positive economic numbers other than the (world will continue to spin.) You can call my opinion crazy, hyperbolic or whatever, but than you offer nothing as proof.

I am not saying that you're crazy. There aren't many positives on the economic front right now, same as there weren't any in 2008. That was a period that was very, very dismal....all bad news, day after day....for months on end. And we got through it. Same as we'll get through this. The pandemic has exacerbated issues like homelessness, mental health issues and crime in general. I'm not saying it's not a difficult period....but what I am saying is that we'll get through it.

 

[DCLMP]

I am not saying that you're crazy. There aren't many positives on the economic front right now, same as there weren't any in 2008. That was a period that was very, very dismal....all bad news, day after day....for months on end. And we got through it. Same as we'll get through this. The pandemic has exacerbated issues like homelessness, mental health issues and crime in general. I'm not saying it's not a difficult period....but what I am saying is that we'll get through it.

Did anyone say we wouldn't get through it? We really have no choice, but to go through it. Is Disney attendance now the perimeter by which to evaluate the economy when only a small percentage of the population can actually afford WDW in good times? There will always be enough people in the "have column" to support Disney.

If you think it's hyperbolic to say the middle class will shrink I would love to see some data that disputes that. What's always made this country great is a strong middle class.

 

[Darcy03231]

I haven't made any changes, but I also don't plan to use it for a while. I'm just riding it out.

 

[Mokat76]

I had a small work-sponsored 401k investment account. About a year ago, shortly after I retired, I transferred it over to an annuity. No gains, no losses. Just peace of mind.

 

[mousefan73]

So I am 48.. should i just let it sit now? I bit too late to change things up as it dropped already... But 48 is enought time right??? ugh....

 

[LuvOrlando]

I am leaning towards thinking the great 401K experiment is a failure for society, it made some rich but hurts the majority ,maybe it's time to go back to the drawing board and create a new format because I no longer trust it. The old pensions had a ton of protections and restrictions. Allowing people to have their own suites created more autonomy ,but it also exposed our entire country to injury, loss and schemes - especially shorts - that rob us of vast wealth with no-one being held accountable. The old way may not be practical since people don't stay put like they did in the 50's, but at least the financial vehicles holding the nest egg were protected, time for an innovation, what we have now is a mess. I look and the menu available to me is garbage and we have no reasonable means to extract it from the dumpster fire so that's happening.

 

[howardlee2]

holding on, this too shall pass.....

 

[QueenIsabella]

I don't think 401ks hurt the majority, but I think a lot of people don't use them correctly. If you put away even a small amount each paycheck, and leave it to grow for a decade or three, while still contributing, you can have a nice nest egg. I think a lot of people either don't invest in them, or take the money out before they reach retirement age (i.e., take out a loan against their balance, or fail to roll over to an IRA when they leave the company and just take a payout, etc.). THOSE things are killers.

I also think that a lot of people don't understand investing. Look at how many people got hosed with Enron--they should have diversified their holdings, but the company was doing well...until it didn't. It's sad that there's so little understanding of finance and investment in this country--look at how many people don't understand compound interest, either for good (your portfolio compounding) or bad (your credit card balance compounding).

 

[DLgal]

I am leaning towards thinking the great 401K experiment is a failure for society, it made some rich but hurts the majority ,maybe it's time to go back to the drawing board and create a new format because I no longer trust it. The old pensions had a ton of protections and restrictions. Allowing people to have their own suites created more autonomy ,but it also exposed our entire country to injury, loss and schemes - especially shorts - that rob us of vast wealth with no-one being held accountable. The old way may not be practical since people don't stay put like they did in the 50's, but at least the financial vehicles holding the nest egg were protected, time for an innovation, what we have now is a mess. I look and the menu available to me is garbage and we have no reasonable means to extract it from the dumpster fire so that's happening.

Pensions are just large scale investments too. "The market" dictates how those play out and many pension funds have been depleted. Pensions are never guaranteed unless they are backed by the government.

 

[wabbott]

I don't think 401ks hurt the majority, but I think a lot of people don't use them correctly. If you put away even a small amount each paycheck, and leave it to grow for a decade or three, while still contributing, you can have a nice nest egg. I think a lot of people either don't invest in them, or take the money out before they reach retirement age (i.e., take out a loan against their balance, or fail to roll over to an IRA when they leave the company and just take a payout, etc.). THOSE things are killers.

I also think that a lot of people don't understand investing. Look at how many people got hosed with Enron--they should have diversified their holdings, but the company was doing well...until it didn't. It's sad that there's so little understanding of finance and investment in this country--look at how many people don't understand compound interest, either for good (your portfolio compounding) or bad (your credit card balance compounding).

The antidote to this is education in high school. Money and how it works is one of the most important issues humans face every day. It is shocking how few secondary schools teach basic personal finance, yet have mandatory classes (think foreign languages) for subjects they will never use again.

 

[DCLMP]

I don't think 401ks hurt the majority, but I think a lot of people don't use them correctly. If you put away even a small amount each paycheck, and leave it to grow for a decade or three, while still contributing, you can have a nice nest egg. I think a lot of people either don't invest in them, or take the money out before they reach retirement age (i.e., take out a loan against their balance, or fail to roll over to an IRA when they leave the company and just take a payout, etc.). THOSE things are killers.

I also think that a lot of people don't understand investing. Look at how many people got hosed with Enron--they should have diversified their holdings, but the company was doing well...until it didn't. It's sad that there's so little understanding of finance and investment in this country--look at how many people don't understand compound interest, either for good (your portfolio compounding) or bad (your credit card balance compounding).

Most people don’t have time to manage their own accounts. You would hope people would learn about compound interest in school. That seems pretty basic.

 

[DCLMP]

So I am 48.. should i just let it sit now? I bit too late to change things up as it dropped already... But 48 is enought time right??? ugh....

You can always move to cash and then get back in later or move money into something with less risk. It’s going to drop more.

 

[LuvOrlando]

Pensions are just large scale investments too. "The market" dictates how those play out and many pension funds have been depleted. Pensions are never guaranteed unless they are backed by the government.

Yes, but pensions used to be very regulated though, as in the categories of investments they were permitted to participate in were strictly defined and closely watched. The risk tolerated was guarded and strategic, really such funds were protected as a national interest. This is not what is happening now with 401ks, which is made plain by the losses & honestly what we are seeing could be a case study in what is wrong with the current structure.

 

[Starport Seven-Five]

I don't think 401ks hurt the majority, but I think a lot of people don't use them correctly. If you put away even a small amount each paycheck, and leave it to grow for a decade or three, while still contributing, you can have a nice nest egg. I think a lot of people either don't invest in them, or take the money out before they reach retirement age (i.e., take out a loan against their balance, or fail to roll over to an IRA when they leave the company and just take a payout, etc.). THOSE things are killers.

I also think that a lot of people don't understand investing. Look at how many people got hosed with Enron--they should have diversified their holdings, but the company was doing well...until it didn't. It's sad that there's so little understanding of finance and investment in this country--look at how many people don't understand compound interest, either for good (your portfolio compounding) or bad (your credit card balance compounding).

Agree on both points. It really doesn't take much to build a sizeable nest egg but it does take discipline and self control. Cutting investments due to *insert random excuse here* or pulling money out for an "emergency" is why many are in bad shape.

Most people don’t have time to manage their own accounts. You would hope people would learn about compound interest in school. That seems pretty basic.

It doesn't take much time to do that. "Most people" have time to watch Dancing with the Stars or whatever other mindless entertainment program. You could easily learn enough about 401k's to set yourself up for success in less than an hour.

You can always move to cash and then get back in later or move money into something with less risk. It’s going to drop more.

You might be right or you might be wrong. Giving blanket advice like this is pretty foolish though IMO.

 

[DLgal]

Most people don’t have time to manage their own accounts. You would hope people would learn about compound interest in school. That seems pretty basic.

This gets taught in pretty high level math classes at this point, as the equation for compound interest isn't some basic one (its a geometric sequence). Unfortunately, many kids never reach that level of math in HS, nor is it usually required for graduation in many states. My son was in advanced math classes and didn't get taught this formula until junior year.