U.S. retirees try to keep cool...
 

...as stocks tumble.


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


Stock Market Volatility (poke Here)

I would hope as one ages that they align their portfolios so they're not so exposed to this type of market volatility.

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.

And oh so easy to do!!

Simple
 

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.

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.

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.

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.

Has anyone read the book "The Aftershock Investor" by Wiedemer and Spitzer? A very good book to read if you are concerned about your investments. As a retired investment professional, I can only find very little with the author's premises to argue with. Since the latest version of the book was written, their theories have only been enforced, and the bubbles have grown much larger and more dangerous. Our growing national debt is the most toxic bubble imaginable, and in my opinion will ultimately be the downfall of our great nation as we know it (see Greece). Our personal financial position is fortunate as we project that we can live a modest life until we are very old on our savings without any investment income besides modest interest. Therefore, we do not own any stocks and are insulated from the possible future market meltdown. We have our money in safe money market accounts, tax free municipal bonds bought a long time ago with good interest rates, and gold. I feel very compassionate for those who rely on future stock market growth as their primary source of retirement security as there is no security in hoping an inflated market will bail them out. I sincerely hope that I am wrong, but I would not bet our retirement security on it!

Sorry you mentioned "biting" and I do understand what you meant, but I also assure that it was not a "lead in"

My limited experience tells me that stability in all areas is vital to a strong market.

I see no stability in our future.

chilout


Future looks great, history was great.




If you can't handle the heat, get out.

Absent something spectacular happening on Monday (in either direction), the DOW will be down almost 10%...for the entire year of 2018.


Since it will be my children who will ultimately reap the benefits, I think they will appreciate me being a believer...of the Oracle of Omaha.

World wide markets are softening. After all it has been a record breaking bull market. It may or may not be time for a cool down.