Suzy Q Antiques wrote: you have not lost unless you sell.you're young.at the end of last year we had 8-10 yrs.worth of living expenses we had to do something with and put it in cd's.won't keep up with infl. but won't need our portfolio for awhile.been retired 10 yrs.,you have plenty of time,as long as you're in good funds.
Quite frankly, I think you were very smart to put the money in CD's. Hopefully it was before last December when the rates started to drastically drop due to the Fed's giving money away.
I did the same thing with 90% of my cash and got a 5% rate. Problem is they will mature in the late fall and I'm not sure what to do then.
Dick A wrote: I have about 10% of my retirement funds in a 401K. However, I really don't think the stock market is going to stabilize anytime soon and quite frankly I don't think I will see much gain on my funds. At one time the market was based on true capitalization of a given company. That is no longer true and the price of any stock is just speculation - just as the oil futures market is just speculation.
The saving rate in the US is a negative figure so who is going to replace the money pulled from the market by retirees? When is the last time you really dug into all the fees, expenses, and sales commissions reported with these funds. The fund managers are getting rich by skimming commissions while the average Joe investor is getting fleeced. I have investments in American Funds through Edward Jones and everyone and his brother-in-law is getting some kind of a cut or kickback on my purchases and operating fees.
Unemployment is increasing, inflation and stagflation is on the rise faster than wages, the dollar is continuing to weaken, the credit markets are tapped out, and consumer confidence is at a historical low.
So, tell me why the stock market will not continue it's decline to at least 8500?
Talk about the watered stock days of the late twenties. Well today the market is so legally corrupt only the rich and connected are skimming the profits.
Good information.
Dick, do you think interest rates are likely to rise anytime soon? This and CDs, seem to be what's weighing on most older RVer's minds lately with their 401K's.
I don't have a 401 but I lost a lot on the market in the last month, So I just decided I wouldn't buy a new sport car, just a used one.
2005 Chev 5.3 Supercharged 395HP 425 T hp. Two wheels on front, 2 on back. one seat, tint windows. front and rear bumpers, headlights, windows. Door on each side. Heater, floor mats, junk behind seats, some dirt. Pulls so hard.
Supercharged wrote: I don't have a 401 but I lost a lot on the market in the last month, So I just decided I wouldn't buy a new sport car, just a used one.
I buy used MHs, cars, toys, etc. to avoid the initial massive financial + depreciation hit of new.......has nothing to do with the stock market these days. At the post-tax return of MM & CDs, which is about 2.5% below headline inflation, more people ought to just keep buying cars, vacations and more toys.
Skid Row Joe wrote: Dick, do you think interest rates are likely to rise anytime soon? This and CDs, seem to be what's weighing on most older RVer's minds lately with their 401K's.
Joe, I don't see interest rates rising much until after the election season. Too much political pressure to keep rates low to supposedly spur the economy.
But, regardless of interest rates, if folks don't have money to spend the current interest rate is a non-issue. There is little left in the housing equity market to borrow on, and most folks are already maxed out on their credit cards.
With the rise in energy, food, and other required living expenses most folks have little left for non-essential toy purchases.
The above comment partly explain why I see the stock market continuing to decline. As the elderly pull money out for retirement expenses there will be less money available to put back in thus lower stock prices. Purchase demand will be down and also the money supply to make purchases. Lower product demand (stocks) and less money available for purchases results in lower average prices.
The worst thing you can do is to pull your money out of the market now. The stock market goes up and down in the short-term. However, over the long-term, stocks have always outperformed fixed-income securities (bonds) and cash (money markets). The key is to hang tight and not fret.
I have another 15 years until retirement and am 100% invested in stocks. To me, the evidence (see long-term returns per Ibbottson Associates) shows that stocks are the best alternative out there. In fact, I would argue that you are at GREATER risk by not being in the market to some degree.
my3sons wrote: The worst thing you can do is to pull your money out of the market now. The stock market goes up and down in the short-term. However, over the long-term, stocks have always outperformed fixed-income securities (bonds) and cash (money markets). The key is to hang tight and not fret.
I have another 15 years until retirement and am 100% invested in stocks. To me, the evidence (see long-term returns per Ibbottson Associates) shows that stocks are the best alternative out there. In fact, I would argue that you are at GREATER risk by not being in the market to some degree.
Traditionally what you mentioned about the market is true. However, there is a very strong possibility the market may not come back or take a very long time to do so. We are no longer the strong growing industrial nation we once were and a large portion of the strong companies that are left are foreign owned.
I would strongly suggest diversifying your funds. I have about half my savings in income producing real estate. Real estate like the stock market goes up and down. However, they don't make paper land and I don't think the Good Lord is making anymore either. Thus, in the long term land will always increase in value due to supply and demand.
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