Not Logged In Log In   Sign Up   Points Leaders
Follow Us    7:49 AM

Message Forum - Read Message

Category: US politics > Topics Add to favorite topics   Post new topicPost New Topic
Author Topic: How's your 401K? Back to Topics
ZZZoop

Champion Author
Virginia

Posts:18,373
Points:3,607,355
Joined:May 2004
Message Posted: Sep 18, 2009 8:56:56 PM

As I was listening to an ABC news story earlier this week, the reporter was lamenting about how some retirees had "lost everything" due to the downturn in the stock market. I've not run across anyone who's even come close to "losing everything."

Anyone have any stories about actual people who "lost everything" in their retirement account and how it occurred?

REPLIES (newest first) Post a Reply
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Aug 18, 2014 1:20:24 PM

I don't think the Fed has changed its '"easy money" policy' yet.
Profile Pic
SE3.5
Champion Author Indianapolis

Posts:22,565
Points:3,653,865
Joined:May 2004
Message Posted: Feb 4, 2014 4:10:28 PM

"This appears to be a normal correction.'

It was bound to happen when the fed changed its "easy money" policy.
Profile Pic
Shockjock1961
Champion Author Illinois

Posts:23,293
Points:2,668,790
Joined:Apr 2006
Message Posted: Feb 4, 2014 4:02:20 PM

"Now."

Why fasten your seat belts? This appears to be a normal correction. They happen all the time...
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Feb 4, 2014 2:28:31 PM

It is a healthy thing for the stock market to go into a tailspin. Wall St. is grossly overvalued. Similar to the unrealistic valuations of the Tesla stock. The underlying fundamentals are simply not there to support this rarified level. We are in a classic bubble.

No jobs, no one is working, car sales in retreat, job market flooded with people with nonsense degrees that are useless, No easy mortgages - banks want 20% down, country flooded with illegals willing to work for pennies, and of course a brand new massive entitlement program , Obamacare, which is going to bankrupt the country.



Profile Pic
SE3.5
Champion Author Indianapolis

Posts:22,565
Points:3,653,865
Joined:May 2004
Message Posted: Feb 4, 2014 11:47:45 AM

I have to wonder. Did Bernanke's "friends and family" start selling short on January 2nd?
Profile Pic
SE3.5
Champion Author Indianapolis

Posts:22,565
Points:3,653,865
Joined:May 2004
Message Posted: Feb 4, 2014 10:55:04 AM

Taking a big hit so far in 2014.
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Feb 4, 2014 10:13:53 AM

>>For what, and when?<<

Now.
Profile Pic
ShanC
Champion Author Rochester

Posts:12,410
Points:417,765
Joined:Mar 2006
Message Posted: Jan 26, 2014 10:44:29 AM

>Fasten your seat belts.

For what, and when?
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Jan 24, 2014 12:55:17 PM

We have a wildly overvalued stock market. The fundamentals of a healthy economy are simply non-existant. We are mired in recession, with rampant unemployment. People are bidding the price of stocks up simply because there is no other better place to put their funds. Not due to fundamental health in the economy. We have a massive new entitlement program - Obamacare- which is poised to bankrupt us.

Europe is in a dangerous economic death spiral from misguided green energy policy while China is on the verge of collapse.

Its time to cash out , at least some of your gains. Take some of that money off the table.

I envision at minimum a 10% to 20% correction this year. I don't envision any hope of economic health in the US until a change of administration.

Profile Pic
WES03
Champion Author Maryland

Posts:6,732
Points:1,671,440
Joined:Feb 2009
Message Posted: Jan 24, 2014 12:20:00 PM

Fine, as it has been for decades.
Profile Pic
streetrider
Champion Author Gary

Posts:10,239
Points:149,355
Joined:May 2004
Message Posted: Jan 24, 2014 12:17:07 PM

By this time next week China's news that is affecting the market will be history.

Who knows our economy might get a boost in the process.

[Edited by: streetrider at 1/24/2014 12:17:04 PM EST]
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Jan 24, 2014 12:14:50 PM

Fasten your seat belts.
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Jan 21, 2014 12:13:31 PM

Up 31% for 2013. Waiting for the correction, as 101 indicated...
Profile Pic
flyboyUT
Champion Author Utah

Posts:27,338
Points:1,408,645
Joined:Aug 2008
Message Posted: Jan 20, 2014 8:59:08 PM

Is there any other game in town? Good quality mutual funds have been a good investment for me for 40 years so far. I think I will stay with what has proven to do well.
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Jan 20, 2014 8:07:56 PM

We have not had a 10% correction for over two years. Proceed cautiously.
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Dec 30, 2013 3:44:03 PM

"but worst case you need to stay ahead of inflation and best case make sure that you don't outlive your money."

Absolutely.
Profile Pic
I75at7AM
Champion Author Dayton

Posts:72,943
Points:2,921,545
Joined:Feb 2006
Message Posted: Dec 30, 2013 2:17:00 PM

Speedy: >>... but worst case you need to stay ahead of inflation and best case make sure that you don't outlive your money.<<

Staying ahead of inflation is always the game.
Making sure I don't outlive my money......I could arrange that. I'd rather not go that route, however......

Hemond: >>I'd like someone to explain to me how this is a healthy stock market.<<

I guess healthy is as healthy does. It the Dow and other indexes advance for another year, then it's healthy. If stiff economic headwinds kock them backward, then it wasn't so healthy after all. Hindsight will determine which it is, after it was.

I see this market as tall and skinny, on spindly legs. Either the aforementioned headwinds or a small burrowing mammal could knock it down.
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Dec 30, 2013 1:50:02 PM

>>If you are planning on 'earning' a significant amount to 'bolster' you retirement funds during retirement, I got a bridge I'd like to sell ya!<<

I don't know about "planning on 'earning' a significant amount to 'bolster' you retirement funds during retirement," but worst case you need to stay ahead of inflation and best case make sure that you don't outlive your money.

I am buying commodity stocks currently.
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Dec 13, 2013 10:01:28 PM

I'd like someone to explain to me how this is a healthy stock market.
Profile Pic
Shockjock1961
Champion Author Illinois

Posts:23,293
Points:2,668,790
Joined:Apr 2006
Message Posted: Dec 13, 2013 1:35:06 PM

I'm very close to retirement, but I still have about 60% of my portfolio in stocks. I may drop it down to about a third when I retire, but I don't see it going much lower then that...
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Dec 13, 2013 1:20:18 PM

"Thats why most financial planners include stocks in a post retirement fund. Balance and diversity is the key to any good portfolio......"

Yes, in retirement, it would be wise to have say 10% in stocks which goes back to the point citizen1 made to begin with;

"When you are retired you should have very little in the market."

Far from retirement, I have 80% in stocks...
Profile Pic
Shockjock1961
Champion Author Illinois

Posts:23,293
Points:2,668,790
Joined:Apr 2006
Message Posted: Dec 13, 2013 12:00:20 PM

"LOL! If you are planning on 'earning' a significant amount to 'bolster' you retirement funds during retirement, I got a bridge I'd like to sell ya!"

I think the point being made is that since you don't know how long you will live, then it's wise to invest your retirement funds in a balanced way, which affords an opportunity for capital growth, so that if your lifespan is longer then was expected you have money in you funds to live on.

Thats why most financial planners include stocks in a post retirement fund. Balance and diversity is the key to any good portfolio......

[Edited by: Shockjock1961 at 12/13/2013 12:00:25 PM EST]
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Dec 12, 2013 1:48:32 PM

"Uh, it would be worse to outlive your retirement funds."

LOL! If you are planning on 'earning' a significant amount to 'bolster' you retirement funds during retirement, I got a bridge I'd like to sell ya!
Profile Pic
SE3.5
Champion Author Indianapolis

Posts:22,565
Points:3,653,865
Joined:May 2004
Message Posted: Dec 12, 2013 11:56:46 AM

Still doing well
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Dec 12, 2013 11:42:06 AM

>>Uh, risk is NOT what you want when you are in retirement...<<

Uh, it would be worse to outlive your retirement funds.
Profile Pic
SE3.5
Champion Author Indianapolis

Posts:22,565
Points:3,653,865
Joined:May 2004
Message Posted: Oct 30, 2013 5:05:38 PM

Doing well.
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Oct 30, 2013 5:03:11 PM

"Definitely not true."

Uh, risk is NOT what you want when you are in retirement...
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Oct 29, 2013 12:03:54 PM

>>You shouldn't have any in stocks... Very low risk after one retires is what is in order.<<

Definitely not true.
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Sep 24, 2013 9:41:20 PM

::::Mine keeps getting bigger.::::


A dangerous symptom of this house-of-cards Obama economy. So many people are flooding the stock exchanges looking for anything better than 0.25% interest as you get in a savings acct. Because you have so many amateurs chasing a fixed number of stocks, the price is driven up.

This is not healthy. It is very dangerous. The underlying businesses are grossly overvalued. So much money has poured into mutual funds that the managers can't place it without driving up the stock price artificially. The stock price does not represent value. It represents emotion, specifically fear.

If and when Bernanke signals no more quantitative easing, no more bond purchases, no more artificially low funds rate, there will be a stock collapse. It already happened in June when he announced 'tapering'. Without strong underlying businesses in the US economy, you have no economy. That is the situation today.
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Sep 24, 2013 7:23:14 PM

"Not true, citizen1."

It depends on what you are referring to as the market I guess. You shouldn't have any in stocks... Very low risk after one retires is what is in order.
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Sep 24, 2013 5:18:28 PM

Not true, citizen1.
Profile Pic
citizen1
Champion Author Connecticut

Posts:1,758
Points:868,790
Joined:Apr 2004
Message Posted: Aug 21, 2013 10:28:53 AM

When you are retired you should have very little in the market.
Profile Pic
streetrider
Champion Author Gary

Posts:10,239
Points:149,355
Joined:May 2004
Message Posted: Aug 18, 2013 10:23:57 PM

Ya I know many retirees that were living on their investments. When the market went down they had to keep pulling money out to live.
Many others had advisors move their investments to other stuff with front end or operating fees.

I also know others such as a friend of a friend that bought 100,000 shares of AIG when it was a 1.00 per share and sold at 3.00 per share.

Make no mistake there were winners and losers.
Profile Pic
AC-302
Champion Author Los Angeles

Posts:30,315
Points:3,348,745
Joined:Aug 2004
Message Posted: Aug 17, 2013 2:30:23 AM

Mine's not too shabby. Here, now. Recently, I changed jobs and had to sign up for a new 401K with the new company. Ok, so they had an income calculator - looking for at least 80% income replacement upon retirement. Between my pension with my last company, my current 401K balance, my life expectancy, my current age, and the age I expect to retire, I already "got it covered" - at 83%. Everything past that is supposedly just gravy. Let's hope so! I'm still going to max out my 401K, as I have a whole lot of years left to retirement.
Profile Pic
mnrick041
Champion Author Twin Cities

Posts:17,229
Points:1,857,115
Joined:Jun 2009
Message Posted: Aug 16, 2013 8:42:23 PM

Mine keeps getting bigger. I do not know anyone who has lost anything.
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Aug 16, 2013 4:49:20 PM

Also, regardless of whose investment advice you take, if you can't understand it then it is useless and you waste your time.

As per my original statement which you danced around. "Can you explain to someone why Jim Cramer said "I don't want you in REITs". "

If you can't explain that statement to a novice, then Cramer's advice is meaningless to you. He has wasted his time on you. You should switch him off and turn on "I Love LUcy" or "Laverne and Shirley".

You'll get more out of those sitcoms than out of a financial presentation like Cramer's.
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Aug 16, 2013 4:45:48 PM

No Clark Howard?
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Aug 16, 2013 4:43:05 PM

:::::Like I say, it doesn't sound like you listen to him. That is completely wrong.:::


Well, like I said. I don't own a Tv and haven't watched a TV program since age 16. If what he does on Tv doesn't jive with what I said, then his TV presentation is different from his radio discussion. I'll just take your word for it then that his TV offering differs. I'm certainly not about to go out and get an idiot box just to verify your premise.


I listen to maybe 5 economic/business/ investing radio programs daily and then a couple more on the weekends. Ramsey, Brinkman, Edelman, and Hardcastle, as well as Cramer, plus local investment radio programming.

Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Aug 16, 2013 12:20:57 PM

Hemond: "Jim cramer is a good radio commentator and I listen to him frequently. Still he mostly does damage control. He deals with financial basket cases on his show. How to get out of credit card debt, how to control wasteful spending. Not so much investment strategies. Most of his callers are broke and looking for help. Not too many are sitting on a $500,000 IRA and looking for investment advice."

Like I say, it doesn't sound like you listen to him. That is completely wrong.
Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Jul 9, 2013 11:10:04 AM

"Zillow is not very accurate where I live in east Ventura County, Weasle. Most houses are selling for at least $100,000 more than what Zillow lists."

Just providing you with references.
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Jul 4, 2013 10:52:13 PM

QUOTE ::::It doesn't sound like you have ever watched Jim Cramer's Mad Money, Hemond.:::


Correct. I've never watched his program or any Tv program since age 16. I don't own a Tv. I consider Tv the equivalent of an addictive drug.

But I do listen to Cramer's podcasts. As well as Dave Ramsey, Bob Brinker, Rick Edelman, Bob Hardcastle, Adam Bold and Clark Howard. In addition to several local talk radio hosts who specialize in stock investing, real estate investing, commodities trends, consumer issues and general market trends in the US/ New England economy.

[Edited by: Hemond at 7/4/2013 10:58:06 PM EST]
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Jul 4, 2013 12:13:11 AM

Zillow is not very accurate where I live in east Ventura County, Weasle. Most houses are selling for at least $100,000 more than what Zillow lists. There is a shortage of houses to sell. Realtors send letters every day saying they have buyers.
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Jul 4, 2013 12:08:39 AM

It doesn't sound like you have ever watched Jim Cramer's Mad Money, Hemond.
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: Jun 20, 2013 10:14:35 AM

QUOTE :::Jim Cramer on today's Mad Money: "I don't want you in mortgage REIT's right now.":::

Can you understand his reasoning? Does it make sense to you? Can you explain to someone why or why not? For that matter, can you explain to someone why you are currently invested in your own choice of investment instruments?


Jim cramer is a good radio commentator and I listen to him frequently. Still he mostly does damage control. He deals with financial basket cases on his show. How to get out of credit card debt, how to control wasteful spending. Not so much investment strategies. Most of his callers are broke and looking for help. Not too many are sitting on a $500,000 IRA and looking for investment advice.

Profile Pic
Weaslespit
Champion Author Cincinnati

Posts:15,172
Points:515,265
Joined:Sep 2008
Message Posted: Jun 20, 2013 9:52:04 AM

"I disagree with you, gocatgo, that the real estate market is at record lows. Real estate may not be at record highs, but it is still pretty high where I live."

Zillow begs to differ, 101Speedster...
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Jun 19, 2013 6:11:19 PM

Jim Cramer on today's Mad Money: "I don't want you in mortgage REIT's right now."
Profile Pic
101Speedster
Champion Author Ventura

Posts:31,592
Points:2,844,505
Joined:May 2005
Message Posted: Jun 19, 2013 5:57:47 PM

gocatgo: "With the real estate market at record lows I suspect there are many opportunities out there for savvy investors."

I disagree with you, gocatgo, that the real estate market is at record lows. Real estate may not be at record highs, but it is still pretty high where I live.
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: May 28, 2013 10:23:15 AM

:::: the choices in my 401k do not include any REITs.:::


There are zillions of REITs available on the open market. You are not bound to an employer's offerings. You are better off with your own account. Yes , make use of the employers plan but also have your own separate plan. Thats called diversity.
Profile Pic
Hemond
Champion Author Providence

Posts:11,722
Points:170,945
Joined:Oct 2006
Message Posted: May 28, 2013 10:18:36 AM

::::You can make money on real estate in various ways. You can also lose a bundle as markets are still fraught with dangers.:::


Hardly, you always have the hard asset. They can't take the land or the building away from you. Unlike stocks where they can and do take your assets away.

But to get back, the juicy profits in RE are found in what mainstream buyers are frightened of - distressed properties. So what if a tenant doesn't pay rent? YOu evict him and get another, a routine procedure.

Bust out tenants are part of the business, accept it, plan for it, and don't fear it, or else open a lemonade stand. Build such eventual losses into the rent. ANy of these criticisms of RE are groundless, you accept the negatives as a cost of doing business. At the end of the day add up your profits. You come out ahead, way ahead.



Profile Pic
I75at7AM
Champion Author Dayton

Posts:72,943
Points:2,921,545
Joined:Feb 2006
Message Posted: May 28, 2013 10:17:13 AM

Hemond, the choices in my 401k do not include any REITs.
If a person leaves a company and decides to roll over their 401k into an IRA, that is a perfect opportunity to broaden their choices and look into real estate as you suggest.
Many people leave money in a 401k even after they leave, not having a better idea what to do with it.
Post a reply Back to Topics