Good bye savings

[lynnmor]

Have some I bonds too, just started playing with that-never heard of it in the past, nobody I knew ever gave me any kind of idea, other than to buy a beach house and rent it out. Well, that's entirely OUT of my budget, period. That was the only financial advice I have ever gotten from anyone. The rest, all on me, and all common sense for the most part (except letting the dealer handle my 401k)

I have some bond funds and recently they suck. I also have a rental and that has been variable, so the current tenant will be moving soon and it will never be rented again, I'm done with the BS. You don't make a lot of profit from the rent, all you can hope for is that the property will increase in value and the tenant will not destroy it.

When you look at the expense ratios of funds and add the fees from an investment firm, you need to make big gains to beat a very cheap index fund. I found out the hard way that these clowns are just like lawyers and only look at what is in it for them.

I have a considerable portion in ETF,s and move in and out when things are going crazy. With conventional mutual funds there is a time delay and you can't bail out or buy quickly.

 

[JimmyJazz]

I have some bond funds and recently they suck. I also have a rental and that has been variable, so the current tenant will be moving soon and it will never be rented again, I'm done with the BS. You don't make a lot of profit from the rent, all you can hope for is that the property will increase in value and the tenant will not destroy it.

When you look at the expense ratios of funds and add the fees from an investment firm, you need to make big gains to beat a very cheap index fund. I found out the hard way that these clowns are just like lawyers and only look at what is in it for them.

I have a considerable portion in ETF,s and move in and out when things are going crazy. With conventional mutual funds there is a time delay and you can't bail out or buy quickly.

I suppose I am one of the clowns you are referring to. I will say that there are lots of old people with million+ dollar accounts that never earned over $25,000 a year. I know this because I have helped in the creation of many. There is very little "move in and out when things are going crazy". Read all Berkshire Hathaway annual letters written by Warren Buffett available for free online if you want to learn all you need to know about investing. As far as fees are concerned many must feel its worth it because the "fish have been jumping in the boat" so to speak where I hang my hat. The behavior component is no small piece of a successful outcome. Many lack it. Good luck. Patience is key.

 

[jyoutz]

It was looking like war was coming, so I moved every thing to treasury bills last week. I lost 4% in a month and decided to chicken out. I will get back to more stocks in the mix at a future date when I feel more comfortable. The same thing happened in 2018 and I implemented the same strategy at that time. Did/will I miss out on the initial stock market rebound? Yes. But I’m sleeping better at night even though I’m only earning 2-3% at this time.

 

[dlsmith]

I put $100 a week into my market account for the last 10 years, used recommendations from Motley Fool to buy stocks. I've had some winners and a couple of losers, but on the whole I' way ahead of the market index. I've taken a beating in the last few months, but I've seen it before, and can ride it out until the market recovers. A lot of analysts have been saying that there was going to be a correction, and with COVID, supply chain issues, labor shortages and now the conflict in Ukraine, that's what's happening.
My market account is nothing I will need to depend on unless I live another 20 years, which at 71, is probably a little unlikely, so most likely the kids can do with it what they want. It has been a learning experience watching my portfolio wax and wane though.
I was always told not to put any money in the market unless you can afford to lose it.

 

[JimmyJazz]

It was looking like war was coming, so I moved every thing to treasury bills last week. I lost 4% in a month and decided to chicken out. I will get back to more stocks in the mix at a future date when I feel more comfortable. The same thing happened in 2018 and I implemented the same strategy at that time. Did/will I miss out on the initial stock market rebound? Yes. But I’m sleeping better at night even though I’m only earning 2-3% at this time.

Treasuries do not earn 2-3%. Almost all bond funds are losing money so far this year. Rich folk and people that aspire to be rich are buying when stocks go down NOT selling. Just a thought.

 

[jyoutz]

Treasuries do not earn 2-3%. Almost all bond funds are losing money so far this year. Rich folk and people that aspire to be rich are buying when stocks go down NOT selling. Just a thought.

The funds I have are earning 2-3% with no risk of loss. Yes I know that high earnings investment require more boldness than my current approach and when I get back into the market it will be with conservative S&P 500 funds. I’m retiring in the next few years and I need my funds to pay off my mortgage and other debts. I don’t have enough years to gamble losing a significant amount.

 

[jyoutz]

Treasuries do not earn 2-3%. Almost all bond funds are losing money so far this year. Rich folk and people that aspire to be rich are buying when stocks go down NOT selling. Just a thought.

Just looked and you are right: my funds that I just moved into earned only 1.38% this past month. They will be a short term refuge until I feel comfortable getting back into the market.

 

[Yooper]

Skeets stockbroker’s name is Joe. Just keeping the record straight

 

[BruceP]

Rich folk and people that aspire to be rich are buying when stocks go down NOT selling.

I would change the first word to "Wise".

While the price is down... NOW is the time to buy undervalued stocks.

Too many folks do not undestand the 'double whammy' when they sell stocks they already own AFTER the value has dipped. Remember, it is not a 'loss' unless you sell.

 

[D2Cat]

I suppose I am one of the clowns you are referring to. I will say that there are lots of old people with million+ dollar accounts that never earned over $25,000 a year. I know this because I have helped in the creation of many. There is very little "move in and out when things are going crazy". Read all Berkshire Hathaway annual letters written by Warren Buffett available for free online if you want to learn all you need to know about investing. As far as fees are concerned many must feel its worth it because the "fish have been jumping in the boat" so to speak where I hang my hat. The behavior component is no small piece of a successful outcome. Many lack it. Good luck. Patience is key.

Patience may be a key, but time is the critical key. Anyone who starts saving at 16,18 or 20 years of age into a growth mutual fund will have more money then they can imagine at retirement age..... if they do nothing else. One fund, no selling, just wait.

 

[Ikc1990]

Skeets stockbroker’s name is Joe. Just keeping the record straight

Poor skeets getting best up again geesh guys.

 

[fruitcakesa]

March 2020 saw my dividend producing portfolio value drop by 50%,
No panic here, I sold off the dogs, held off till the market started recovering and then began reinvesting,
Less than a year later I had recouped all my losses [more than $60k!].
All that time my remaining equities continued paying dividends.
Everyone's tolerance for risk varies but long term vision is essential for any financial choice that you plan on living off.

 

[Trapper Bob]

Down market is a buying opportunity. I’m still investing (helped by a good firm). I used to manage my own portfolio. Market changes happen to fast, compared to 10-20 years ago, for me to keep up. I want somebody watching my money for me. I don’t begrudge them their fee for doing that. I was able to buy a farm 5 years ago (that is now worth 2x what I paid for it) and I want to be out on my Kubota. & that is what we are all about, right?

 

[BruceP]

I want to be out on my Kubota. & that is what we are all about, right?

Nice pivot to the major reason we are all here

 

[MOOTS]

This is all Chinese to me. Dad left me a good chunk of an IRA. The wife wants to move it to our bank in an inherited IRA CD, whatever that means.

She's nervous about the stock market stuff. We did move most of it to a money market(?) to sit and gain very little vs. losing. And kept about 40k in the market, it has gone up and down.

 

[BruceP]

This is all Chinese to me. Dad left me a good chunk of an IRA. The wife wants to move it to our bank in an inherited IRA CD, whatever that means.

She's nervous about the stock market stuff. We did move most of it to a money market(?) to sit and gain very little vs. losing. And kept about 40k in the market, it has gone up and down.

It sounds to me as if need professional help

The main thing to know is an IRA is a Federally defined type of account. I beleive an IRA can be 'transferred' to any other approved account. (it is called a "rollover")

Also, WHERE the money is invested has NO RELATION to being IRA. You can choose 'volatile' investments... or 'conservative'. That is YOUR choice.

Also beware, the government can change the 'rules' at any time they choose. A new rule which Biden has proposed is that any inherited accounts MUST BE SPENT within a specific time. (The government does not get their taxes unless spent)

 

[MOOTS]

It sounds to me as if need professional help

The main thing to know is an IRA is a Federally defined type of account. I beleive an IRA can be 'transferred' to any other approved account.

Also beware, WHERE the money is invested has NO RELATION to being IRA. You can choose 'volatile' investments... or 'conservative'. That is YOUR choice.

Also beware, the government can change the 'rules' at any time they choose. A new rule which Biden has proposed is that any inherited accounts MUST BE SPENT within a specific time. (The government does not get their taxes unless spent)

I have help, Dad had a guy that is still handling it. And you are correct, I have 10 years to dissolve the funds.

I may pull it all and invest in Mason jars....

 

[Whatscooking]

Just like my father said when we were farmimg, the time to get in is when everyone else is getting out.

 

[BruceP]

I may pull it all and invest in Mason jars....

I realize you may be joking...

If it is a tax-deferred account, you pay taxes THE YEAR YOU WITHDRAW.

It may be unwise to take out more than you need each year lest you can be pushed into a higher tax-bracket and the government gets more of your money.

 

[Willabe]

This is the S&P trend over the last 10 years.

This is the Dow Jones trend over the same period.

Not sure how you're at 2010 levels...

Markets are also higher than we were in 2020.