How will 401ks be affected?

[MarathonMike]

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.

That's fair. There are fortunate individuals who are 72 or older who have enough that big swings in the stock market do not affect them. That is not the case for the majority of Americans over 72.

 

[bdtex]

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

Yessir. You have a point there. 50% at most maybe.

 

[Dekster]

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.

My YTD is sliding back toward "even" since January 1. I think the whole lot of them was up 3.5ish three weeks ago and are now just over 1 when I looked this morning. At the end of the day, I don't really care that much. I'll still be able to retire when I plan to retire. I have the bulk of our money parked in a money market and CD's. The CD's are doing 3.6. The MM is 4.4 but that is a 4 month teaser rate. I will move it elsewhere when it drops back to .15

 

[Cougarbear]

That's fair. There are fortunate individuals who are 72 or older who have enough that big swings in the stock market do not affect them. That is not the case for the majority of Americans over 72.

Again, that's a blanket statement. If the money has been in the account for a while and the advisor invested it wisely, the value may be down but still should be just fine with the customer's goals. The advisor has a fiduciary responsibility to set up and keep up the account properly for the customer in good times as well as bad times.

 

[Cougarbear]

My YTD is sliding back toward "even" since January 1. I think the whole lot of them was up 3.5ish three weeks ago and are now just over 1 when I looked this morning. At the end of the day, I don't really care that much. I'll still be able to retire when I plan to retire. I have the bulk of our money parked in a money market and CD's. The CD's are doing 3.6. The MM is 4.4 but that is a 4 month teaser rate. I will move it elsewhere when it drops back to .15

So, depends on where you are in your retirement plans. If you are 10 years out, you are losing big time if you understand compound interest. Albert Einstein once said about compound interest, "He who understands it, makes it, he who doesn't, pays it."

 

[Dekster]

So, depends on where you are in your retirement plans. If you are 10 years out, you are losing big time if you understand compound interest. Albert Einstein once said about compound interest, "He who understands it, makes it, he who doesn't, pays it."

I have 1 child in college and a second about to join him this fall and a third hopefully one day if they ever decide to leave their room. I am not investing my money in crap with some maximize every penny mentality. I am making some money on the cash while it sits for the next round of tuition bills. After all the college-ing is done, I will retire even if it is on half of what we have now. I owe nothing to anybody. We are debt free. It doesn't take a lot of cash to snooze in the recliner waiting for the grim reaper.

 

[MarathonMike]

Again, that's a blanket statement. If the money has been in the account for a while and the advisor invested it wisely, the value may be down but still should be just fine with the customer's goals. The advisor has a fiduciary responsibility to set up and keep up the account properly for the customer in good times as well as bad times.

It's a blanket statement that happens to be true. Maybe I'm stepping on your toes, but no responsible financial manager would ever have low or moderate income people in their 70s heavily invested in stocks.

 

[Cougarbear]

I have 1 child in college and a second about to join him this fall and a third hopefully one day if they ever decide to leave their room. I am not investing my money in crap with some maximize every penny mentality. I am making some money on the cash while it sits for the next round of tuition bills. After all the college-ing is done, I will retire even if it is on half of what we have now. I owe nothing to anybody. We are debt free. It doesn't take a lot of cash to snooze in the recliner waiting for the grim reaper.

Your limiting belief is deafening. Waiting to retire in a recliner. There is so much that retirees do without the recliner. Retirement money (Long term) in the bank is only making money for the bank. You are losing to inflation and maybe taxes too? Ever watch a western TV or movie show? The banks were made out of the same materials as the homes back in the 1800's. Now, the banks are made out of steel, concrete, marble walls and floors and titanium vaults. Our homes, still made out of wood, stucko and chicken wire. What happened? Banks and Insurance companies figured out how to get people like you to save long term with them only to invest your money in the very same things you fear like stocks, mutual funds...

 

[luiza]

How will 401ks be affected?​

Any experts here offer any insights into this?

Morticia is the exact person .
That is her weight .
Not as daft as she looks to be .

Are you , Porky Morky?

 

[Cougarbear]

It's a blanket statement that happens to be true. Maybe I'm stepping on your toes, but no responsible financial manager would ever have low or moderate income people in their 70s heavily invested in stocks.

It's actually just a blanket statement that is unknown to be true or false. You need more information. No one said I was talking about low income senior citizens. The wants and needs of any investor at any age must be taken into consideration to be complying with the fiduciary rules. And, who said anything about "heavily" invested in "stocks?" For long term, a well allocated investment will help way more with future finances than putting money into CD's or Whole Life Insurance.

 

[Dekster]

Your limiting belief is deafening. Waiting to retire in a recliner. There is so much that retirees do without the recliner. Retirement money (Long term) in the bank is only making money for the bank. You are losing to inflation and maybe taxes too? Ever watch a western TV or movie show? The banks were made out of the same materials as the homes back in the 1800's. Now, the banks are made out of steel, concrete, marble walls and floors and titanium vaults. Our homes, still made out of wood, stucko and chicken wire. What happened? Banks and Insurance companies figured out how to get people like you to save long term with them only to invest your money in the very same things you fear like stocks, mutual funds...

Yawns. Try to get out more or take a nap. That Suze Orman mentality will dehumanize you.

 

[Cougarbear]

Yawns. Try to get out more or take a nap. That Suze Orman mentality will dehumanize you.

I don't watch or listen to her. But, when it comes to making money, she's right most of the time. Again, you are simply helping bankers out making billions of dollars while you make tens of dollars on your money. Sounds like you have plenty of time to let dollar cost averaging, dividends and capital gains make you a lot more comfortable in your recliner ramping up your diabetes.

 

[sartre play]

Thanks, lots of interesting info.
Worry for family members who have 401k through their company.
The last big crash, Had money and time to wait for things to turn around. And not that much money invested in stocks.
so We let it ride.
took 7 years to regain plus a tiny increase. And then got totally out of the market for ever.

 

[bdtex]

Thanks, lots of interesting info.
Worry for family members who have 401k through their company.
The last big crash, Had money and time to wait for things to turn around. And not that much money invested in stocks.
so We let it ride.
took 7 years to regain plus a tiny increase. And then got totally out of the market for ever.

Funny you should say that. I am 7 years and 1 month out from having to take RMDs from my IRA/401K/tax-deferred annuity. Got quite a bit of money in high-yield CDs that I can live off of for awhile and waiting until I hit 70 for SS. Gonna give the markets time to bounce back then adjust my mix of assets in the retirement accounts. Hope it works out for me.

 

[multivita-man]

Any experts here offer any insights into this?

I would diversify and get in defensive mode. Reallocate so that you're less invested in equities and that you're balanced out with gold and other commodities.

 

[CrazyTrader55]

Any experts here offer any insights into this?

The general trend is going to remain "DOWN" until there is more clarity on what is going to happen with Trump II . There is massive cleanup going on inside the federal government, much to the dismay of the career politicians, most of them Democrats. And guess what. That is going to cause short term pain.

 

[CrazyTrader55]

Your limiting belief is deafening. Waiting to retire in a recliner. There is so much that retirees do without the recliner. Retirement money (Long term) in the bank is only making money for the bank. You are losing to inflation and maybe taxes too? Ever watch a western TV or movie show? The banks were made out of the same materials as the homes back in the 1800's. Now, the banks are made out of steel, concrete, marble walls and floors and titanium vaults. Our homes, still made out of wood, stucko and chicken wire. What happened? Banks and Insurance companies figured out how to get people like you to save long term with them only to invest your money in the very same things you fear like stocks, mutual funds...

Mending chicken wire?! We'll get that chicken!

 

[multivita-man]

The general trend is going to remain "DOWN" until there is more clarity on what is going to happen with Trump II . There is massive cleanup going on inside the federal government, much to the dismay of the career politicians, most of them Democrats. And guess what. That is going to cause short term pain.

My concern is what this does to regulatory oversight. I am sorry, but markets don't regulate themselves, and men are not angels.

 

[CrazyTrader55]

My concern is what this does to regulatory oversight. I am sorry, but markets don't regulate themselves, and men are not angels.

Who cares about regulatory oversight? The so-called "regulators" missed 15 years of warnings about Bernie Madoff. Go read the book "No One Would Listen". The regulators are useless. Do your own due diligence and get with a reputable company like Fidelity or Vanguard.

 

[multivita-man]

Who cares about regulatory oversight? The so-called "regulators" missed 15 years of warnings about Bernie Madoff. Go read the book "No One Would Listen". The regulators are useless. Do your own due diligence and get with a reputable company like Fidelity or Vanguard.

It's funny how regulators seem particularly useless during Republican administrations. I suppose in the 1920s (Coolidge, then Hoover) there was an absence of regulator frameworks, but the S&L crisis happened under Reagan and then the Great Recession happened under GW Bush.