How will 401ks be affected?

[1srelluc]

You don't sell everything at retirement....that's just dumb.

So is playing stock market wizard and trading a bunch yourself with daily/weekly trades. That's a quick way to lose your life savings.

All of first quarter gains are now losses. Not a big deal. Actually more of a buying opportunity when the knife stops falling.

That knife might stop around 4700 for the S&P. Dunno yet.
But the lights in Walmart are still burning and people are still in there buying groceries and junk.
Albertsons hasn't closed yet either or Kroger. Home Depot is still selling supplies and materials. Cargo ships are still lining up at the ports and trains are running cargo. Same with 18wheelers.

Buy low, sell high. But not necessarily in that order. That's how money is made on wall street.

Yeah, I still have all of my investments, but I changed it around a bit.....It looks more like my grandad's portfolio now.

Hell, I still have some of his paying nice dividends every year.

For the average person.....Invest by a calendar, not by a stopwatch.

That said a lot of "Homes in the Hamptons" have been bought with profits taken on Nvidia.

 

[bdtex]

LOL....I hope nobody is tech heavy and close to retirement.

Or already in retirement and forced to take RMDs at a minimum. Them folks are taking a hit.

 

[bdtex]

LOL....I hope nobody is tech heavy and close to retirement.

Or close to retirement with no other source(s) of income that are not subject to market volatility.

 

[skews13]

This post ^^^^^ hasn't aged well.
That said, WHEN the market bounces back, it always does, trump will want credit when in reality, he caused this decline, ALL MY HIMSELF.

View attachment 1088150

 

[Mac1958]

How will 401ks be affected by tariffs? I'm unsure. Looking for forecasts.

You can't make any long term projections. There are too many opposing currents. For example, Trump could change his mind and all bets are off. Or the Fed could reduce/increase interest rates and the market goes nuts. Trying to predict where the market is going is pointless.

Just make sure your 401K is set up appropriately for your risk tolerance, time frame and goals. Make sure your stock/bond allocations and fund mixes are right for you. If you're not sure, there are advisors who will charge you hourly for a review and suggestions. They'll ask you several questions and they'll give you an idea if you're set up well. This is REALLY easy stuff for them, and it's worth it for you.

If a person is surprised and scared by what their 401K is doing, that just means that they had not adequately planned ahead. Most 401K workplace plan providers are awful at both basic education and individual guidance. Get your own local hourly personal advisor to help, and make a yearly appointment.

 

[MarathonMike]

As I neared retirement, I was amazed how many of my friends had most of their 401Ks in stocks. When you're old, you don't have the decades of "recovery time" for stock market crashes that younger people do.

 

[martybegan]

You can't make any long term projections. There are too many opposing currents. For example, Trump could change his mind and all bets are off. Or the Fed could reduce/increase interest rates and the market goes nuts. Trying to predict where the market is going is pointless.

Just make sure your 401K is set up appropriately for your risk tolerance, time frame and goals. Make sure your stock/bond allocations and fund mixes are right for you. If you're not sure, there are advisors who will charge you hourly for a review and suggestions. They'll ask you several questions and they'll give you an idea if you're set up well. This is REALLY easy stuff for them, and it's worth it for you.

If a person is surprised and scared by what their 401K is doing, that just means that they had not adequately planned ahead. Most 401K workplace plan providers are awful at both basic education and individual guidance. Get your own local hourly personal advisor to help, and make a yearly appointment.

I'm turning 50 this year and will begin moving small amounts every year to more stable funds, bond based, money markets.

As an Engineer if I keep my health I can work into my 70's, even if just 10-20 hours a week as a consult.

And if I don't keep my health, well then, my niece and nephews get a nice payout from Uncle Marty.

I started contributing when I first went full time, and I have between 900k and 1.1M in two accounts (need to combine them).

Never contributed less than 10% or the company match.

 

[otto105]

That's poor planning. If you're invested in volatile stocks at retirement age, you're taking WAY too much risk. That's just dumb.

That depends on how long a retiree thinks they're going to live. Being too conservative in investments could let you run out of money.

 

[Zafira Cherry]

Is there a problem?

View attachment 1073973

yes tRUMP and tariffs are the problem. 401K is in "big trouble"

 

[MarathonMike]

That depends on how long a retiree thinks they're going to live. Being too conservative in investments could let you run out of money.

For old people, the stress of watching your retirement savings yo-yo up and down with the Market would be very stressful and possibly shorten one's lifespan.

 

[martybegan]

For old people, the stress of watching your retirement savings yo-yo up and down with the Market would be very stressful and possibly shorten one's lifespan.

Old people shouldn't have a majority of their 401k in stocks that can yo-yo up and down.

Or enough to weather the yo-yo.

 

[MarathonMike]

yes tRUMP and tariffs are the problem. 401K is in "big trouble"

View attachment 1088390

Here's a pro tip from a long time successful investor in stocks. They go up and down for lots of reasons.

 

[Zafira Cherry]

Here's a pro tip from a long time successful investor in stocks. They go up and down for lots of reasons.

and there are some cold hard facts...

Of the 11 recessions that have occurred in the modern (post-World War II) era, 10 of them have occurred under Republican presidents. Republican presidents often inherit strong economies and leave their successors with significantly weaker economies.

401k's are in BIG trouble. The average person will NEVER recoup the 40% haircut they are going to take all in the name of a CULT.

CULTS are Dangerous.

 

[Luckyone]

Any experts here offer any insights into this?

 

[MarathonMike]

and there are some cold hard facts...

Of the 11 recessions that have occurred in the modern (post-World War II) era, 10 of them have occurred under Republican presidents. Republican presidents often inherit strong economies and leave their successors with significantly weaker economies.

401k's are in BIG trouble. The average person will NEVER recoup the 40% haircut they are going to take all in the name of a CULT.

CULTS are Dangerous.

Says a member of the THC.

 

[MarathonMike]

Or already in retirement and forced to take RMDs at a minimum. Them folks are taking a hit.

If you are RMD age which is now 72-73, there is no way you should be significantly invested in stocks.

 

[Cougarbear]

Don't consider myself an expert. but it will largely depend on which stocks a fund holds. Eventually the market will adapt. I have always kept a big chunk of mine in international funds as hedge against American political schizophrenia.

It’s okay to diversify. But if you look back to 1900, U.S. stocks always outperformed internationals over periods of time as few as 5 year blocks of time. If you are investing long term, best to avoid internationals.

 

[otto105]

It’s okay to diversify. But if you look back to 1900, U.S. stocks always outperformed internationals over periods of time as few as 5 year blocks of time. If you are investing long term, best to avoid internationals.

There is little reason to buy into this market currently until tariff and economic policy bullshit is ended.

 

[Cougarbear]

If you are RMD age which is now 72-73, there is no way you should be significantly invested in stocks.

Depends on what they start with in relation to their goals and needs. Loss in value, but not loss in shares of stock. Stocks may pay out in dividends to be reinvested at lower share prices. Capital gains as well. There are other factors to consider as well rather than making any blanked statements.

 

[Cougarbear]

Any experts here offer any insights into this?

Check out the Andex chart from Morningstar that shows the growth of the S&P500 from 1900 to the present. Then, learn about dollar cost averaging. Dollar cost averaging also works with dividend and capital gains reinvesting with stock mutual funds. It’s interesting that when there’s a big discount on prices for any other commodity goods and services we usually get all excited to go out and buy. Even with housing prices going down. But with stocks? Weird!