Quote:
Originally Posted by 2BNTV
I was wondering if anyone has any insight to where Dow Jones bottom will be? Does anyone know?
My investment broker doesn't really know but is saying a loss of 35% is bottom. As usual, investment brokers are saying that long term investors should stay calm and not miss the upswing.
As of yesterday, the market was 1400 points above when Trump took office, (please, no political commentary).
I am staying put as I missed the downturn and don't want to miss the upswing. I timed the last downswing during last market upheaval and it turned out great.
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The following is my opinion only. Consult your professional investment advisor before taking any actions.
I assume virtually nobody in the villages has all of their money in stocks. A moderate allocation would be 60/40 stocks/bonds.
Before this disruption, most people should have had 3-6 months of expenses in cash. Money they may need in the next 1-3 years can be invested conservatively (maybe 20% stocks). Money they won’t need until 4-7 years can be moderately invested (40% stocks?). Money not needed for 8+ years can be invested aggressively 80-100% stocks). That’s before the disruption. If you had all of your money in stocks, this post is not for you.
-if you don’t need income from your investment accounts you should be able to wait indefinitely for a recovery.
THIS PART IS VERY IMPORTANT:
-If you are drawing income each month or year, consider drawing only from the bonds in your account. That will give the stock portion time to recover while your cash flow is maintained. With even just 40% in bonds you could have 8 or more years before you have to touch the stocks.
If you are taking Required Minimum Distributions from your IRA that you don’t need, simply reinvest the net withdrawal after tax in a non-IRA account, allocated the same way your IRA is allocated. When the recovery comes your non-IRA money will recover, too.
Before you act on any of this, consult your professional investment advisor. Your mileage may vary.
Subscribe to Netflix and wait it out. This too will pass.