U.S. retirees try to keep cool...

U.S. retirees try to keep cool...

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U.S. retirees try to keep cool...
  #1  
Old 12-28-2018, 03:58 PM
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Exclamation U.S. retirees try to keep cool...

...as stocks tumble.


An interesting article...applicable to a lot of us.


Stock Market Volatility (poke Here)

Quote:
"I have not looked at my numbers. I'm afraid to do it," said Farrington, who recently moved to Charleston, South Carolina, from Boston. "We've been conditioned to stand pat and not panic. I sure hope my advisers are doing the same."

Retirees are worrying about their nest eggs as this month's sell-off rounds out the worst year for stocks in a decade, and some fear they are headed for a day of reckoning like the 2008 market meltdown or dot-com crash of the early 2000's.
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  #2  
Old 12-28-2018, 04:07 PM
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I would hope as one ages that they align their portfolios so they're not so exposed to this type of market volatility.
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  #3  
Old 12-29-2018, 07:34 AM
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Quote:
Originally Posted by ColdNoMore View Post
...as stocks tumble.


An interesting article...applicable to a lot of us.


Stock Market Volatility (poke Here)
From the same article - "Retirees have less time to recover from bad investment moves than younger workers. Their portfolio could be even more at risk if they hold on too long in a prolonged decline.s. "

A 50% drop in the market takes a 100% rise to make it back to breakeven. For most seniors it takes more than 100% due to the fact they are making monthly withdrawals to live thus the base is smaller than when the market went down. Sleep tight.
  #4  
Old 12-29-2018, 01:05 PM
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Quote:
Originally Posted by Kenswing View Post
I would hope as one ages that they align their portfolios so they're not so exposed to this type of market volatility.
And oh so easy to do!!
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Old 12-29-2018, 04:43 PM
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Quote:
Originally Posted by rustyp View Post
From the same article - "Retirees have less time to recover from bad investment moves than younger workers. Their portfolio could be even more at risk if they hold on too long in a prolonged decline.s. "

A 50% drop in the market takes a 100% rise to make it back to breakeven. For most seniors it takes more than 100% due to the fact they are making monthly withdrawals to live thus the base is smaller than when the market went down. Sleep tight.
Many people do not understand math.

If, you invest 10,000 and the first year you make 10%. The next year you loose 10% many people THINK they have now 10,000
10,000+10%=11,000 11,000-10%=9900. To get the claimed LONG TERM gain of 8% per year you would have to get 10,000+8%=10,800+8%=11664 11664+8%=12597.12.
Since your second year, you lost $100 you only have 9900 you need to make 27% the third year to be getting the quoted 8% per year.

Most of the information WE read is written by people SELLING investments. We read about the magic of compounding. MY POINT is to remind ourselves that it cuts both ways.
  #6  
Old 12-29-2018, 05:19 PM
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I’ve gone through the “tech bubble”, Fed raising rates, Fed lowering rates, The Great Recession, inappropriate investments and downright “investment advisor” incompetence. (Barron’s Top 100). My IRA had its greatest steady gains when I was getting %6.5 per year in an American Skandia variable annuity for five years. The good news, if I live long enough and never make a withdrawal I could become a millionaire someday.
That never a withdrawal is overridden by the mandatory RMD. My current “advisor” gets 1% per year and I don’t even get a free client dinner.
Anybody happy with a Vanguard designed portfolio.
  #7  
Old 12-29-2018, 05:29 PM
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Originally Posted by billethkid View Post
And oh so easy to do!!
Hoping you are correct, because I fear we have not seen the worst of it.
  #8  
Old 12-29-2018, 06:32 PM
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Quote:
Originally Posted by Bucco View Post
Hoping you are correct, because I fear we have not seen the worst of it.
That was my point. If you're concerned that the market is going to get worse, get your money out of the market and into something safer.
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Last edited by Kenswing; 12-29-2018 at 06:40 PM.
  #9  
Old 12-29-2018, 06:43 PM
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Quote:
Originally Posted by Kenswing View Post
That was my point. If you're concerned that the market is going to get worse, get your money out of the market and into something safer.
Agreeing totally...lots to do with stability, and our country is very unstable at present.
  #10  
Old 12-29-2018, 06:52 PM
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Quote:
Originally Posted by Bucco View Post
Agreeing totally...lots to do with stability, and our country is very unstable at present.
I'm not going to bite except to say markets go up. Markets go down. Adjust your portfolio according to your perceived risk.
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