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Stock market is killing me! Erased growth from the past 2 years.

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Stock market is killing me! Erased growth from the past 2 years.

Old 02-24-2019, 12:12 PM
  #161  
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As long as you have enough cash and earning to cover expenses it is better to stay invested over time. I personally have too much in cash and short term investments but it is something my wife demands. She wants 7-10 years of expenses with no regard to current income. I tell her all the time it is costing us but it is not an argument I will win. Our adviser at Schwab agrees with me from a technical POV but says if it makes Holly feel better so be it.
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Old 02-24-2019, 12:17 PM
  #162  
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I have gained back more than half of what I lost in late 2018. As soon as it gets fairly close to equal to my highest point last year, I will move the $ in the highest risk/reward fund to something a little more conservative.
I am in a couple of very tech heavy funds, and too close to (hopeful) retirement to keep in these 2 funds long term anyway.
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Old 02-24-2019, 01:14 PM
  #163  
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Good grief some of you guys act like we just went through 2008-2009. If a little bit of a bear cub like the last few months gets you stirred up you really need to evaluate your risk tolerance and adjust your risk profile, otherwise next time things get really sporty you will definitely make some very costly mistakes.
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Old 02-24-2019, 02:17 PM
  #164  
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Originally Posted by RussH View Post
I was honestly thinking about it but several THT members made the comment to let it ride and not do anything so that is what I did. I need to do something with my accounts but I have been arguing with myself what to do. I have the majority of my retirement money in high growth/high risk and I need to make some changes.
Russ, nothing says you need to make those changes all at once. At your well advanced age () you should get into some safer investments, but by doing it slowly over time you'll be lessening your risk while still remaining in, what is currently, a somewhat favorable market.

Just to throw some numbers out there (I am NOT an expert and this is NOT financial advice), look at what you would need to have, say, 4-7 years of living expenses in safe money. Make that move now so you could weather a big market downturn. It will take a lot of the immediate pressure off. You might miss out on some short term gains, but you'll be secure and you might have some cash to move to higher risk WHEN the market goes down. Because it WILL go down again. It's the nature of the beast.
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Old 02-24-2019, 02:39 PM
  #165  
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Originally Posted by ChrisW21 View Post
Russ, nothing says you need to make those changes all at once. At your well advanced age () you should get into some safer investments, but by doing it slowly over time you'll be lessening your risk while still remaining in, what is currently, a somewhat favorable market.

Just to throw some numbers out there (I am NOT an expert and this is NOT financial advice), look at what you would need to have, say, 4-7 years of living expenses in safe money. Make that move now so you could weather a big market downturn. It will take a lot of the immediate pressure off. You might miss out on some short term gains, but you'll be secure and you might have some cash to move to higher risk WHEN the market goes down. Because it WILL go down again. It's the nature of the beast.
And this so completely misses the big picture.........



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Old 02-24-2019, 02:43 PM
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Originally Posted by aubv View Post
And this so completely misses the big picture.........
Please enlighten me.

What's the big picture that I'm missing??

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Old 02-24-2019, 03:17 PM
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Originally Posted by ChrisW21 View Post
Please enlighten me.

What's the big picture that I'm missing??
The power of compounding.
Go look at a 35 year chart of the S&P 500 and see if you can find the 1987 crash.

The markets historically return, with dividends ~7%/ yr. DESPITE market pull backs. So, why would even bother messing with that long term formula?

Investing just doesn't have to be that complicated, you can live a long happy life just investing in the S&P 500.


Really worth a listen-

https://www.cnbc.com/video/2018/06/2...-says-cio.html





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Old 02-24-2019, 03:27 PM
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Originally Posted by aubv View Post

The power of compounding. go look at a 35 year chart of the S&P 500 and see if you can find the 1987 crash.

The markets historically return, with dividends ~7%/ yr.
DESPITE market pull backs. So, why would even bother messing with that long term formula?

Investing just doesn't have to be that complicated, you can live a long happy life just investing in the S&P 500.


Really worth a listen-

https://www.cnbc.com/video/2018/06/2...-says-cio.html
Oh, I'm with you 100%. I thought you were going to tell me something revolutionary! I haven't changed my investments in over 10 years. I have ~20 years to retirement so I can ride it out. But Russ is nearing retirement and needs to put some money into safer funds. All I'm saying is that if he has a "safe" nest egg then he will also have opportunities to invest higher risk WHEN the market goes down. And it WILL go down again someday. The cycle has been happening for over 100 years.

Having all his money in high risk at his advanced age () isn't the smart thing to do. Both financially and mentally, since he like to check on it frequently.
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Old 02-24-2019, 03:31 PM
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Originally Posted by aubv View Post
Go look at a 35 year chart of the S&P 500 and see if you can find the 1987 crash.

BTW.... even without the years listed on the X axis, it isn't hard to find.



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Old 02-24-2019, 03:43 PM
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Originally Posted by ChrisW21 View Post
BTW.... even without the years listed on the X axis, it isn't hard to find.

and you probably missed the big picture, again...
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Old 02-24-2019, 04:03 PM
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Originally Posted by ChrisW21 View Post
Oh, I'm with you 100%. I thought you were going to tell me something revolutionary! I haven't changed my investments in over 10 years. I have ~20 years to retirement so I can ride it out. But Russ is nearing retirement and needs to put some money into safer funds. All I'm saying is that if he has a "safe" nest egg then he will also have opportunities to invest higher risk WHEN the market goes down. And it WILL go down again someday. The cycle has been happening for over 100 years.

Having all his money in high risk at his advanced age () isn't the smart thing to do. Both financially and mentally, since he like to check on it frequently.
And I'm saying you are wrong to think that you ever need to be in risky investments. Or for that matter own a bond when many stocks can easily become bond like or better.



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Old 02-24-2019, 04:19 PM
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Originally Posted by aubv View Post

And I'm saying you are wrong to think that you ever need to be in risky investments. Or for that matter own a bond when many stocks can easily become bond like or better.
I think it's situational. Maybe you started investing too late in life. Maybe what you can afford to invest won't be enough. Maybe you don't think you have enough to last. Maybe you're hoping to leave something for the kids. Maybe you just like to play the market.

I understand what you're saying and it's the rule I'm trying to follow, but without knowing a person's actual situation you can't just randomly say, "Play the safe bet.".

Your scenario is perfect for someone who has started investing young in life and kept with it. But it doesn't work for everyone.
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Old 02-24-2019, 04:50 PM
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Originally Posted by ChrisW21 View Post
I think it's situational. Maybe you started investing too late in life. Maybe what you can afford to invest won't be enough. Maybe you don't think you have enough to last. Maybe you're hoping to leave something for the kids. Maybe you just like to play the market.

I understand what you're saying and it's the rule I'm trying to follow, but without knowing a person's actual situation you can't just randomly say, "Play the safe bet.".

Your scenario is perfect for someone who has started investing young in life and kept with it. But it doesn't work for everyone.
So, chasing returns, via high risk, with retirement funds is ok? And if it fails?
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Old 02-24-2019, 05:05 PM
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Originally Posted by aubv View Post

So, chasing returns, via high risk, with retirement funds is ok? And if it fails?
what funds do you invest in? (Serious question)
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Old 02-24-2019, 05:18 PM
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Originally Posted by aubv View Post

So, chasing returns, via high risk, with retirement funds is ok? And if it fails?
For some people that's their personal choice. And when the market crashes it doesn't have to be what would normally be considered "high risk". ALL stocks will suffer. Waiting for that 35 yr average to return or going all in on bonds may not be an option for some people.

If I'm at retirement and I know I don't have enough to last for the rest of my expected life, I'm going to risk a bit. Again, personal choice.

I think it's human nature. I know it makes financial advisers want to kick a puppy into a fan, but I'd rather take that chance than know I was going to be broke in a couple years and worry about that every, single day. I'd feel I had to try something.

Not the proper thought process according to "the rules", and I'm doing my best to not be in that situation (currently 12% 401k, going to 15% in July), but it is the reality for a large percentage of people in this country.

The ideal of 50 years of 401k/retirement planning and saving is awesome but it's just that. Ideal. The majority today are not living in the "ideal" world.
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Old 02-24-2019, 05:25 PM
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Originally Posted by cfarmd View Post


what funds do you invest in? (Serious question)
Why funds? if the fund managers are so good why are they still working? Why not stock in individual "good" companies that will be here year after year? (Serious question)
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Old 02-24-2019, 05:26 PM
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Originally Posted by ChrisW21 View Post

The ideal of 50 years of 401k/retirement planning and saving is awesome but it's just that. Ideal. The majority today are not living in the "ideal" world.
Gotta make sure the kids are in the same sports program the Jones kids are in, gotta go on that trip everyone else is going on, gotta get that new car, gotta replace the roof, oh sweet the market is up, let's take out a other home equity loan, the Jones just joined that club, we gotta sign up too...don't forget to post our brunch with the Jones' on Instagram......

^^ This is why people aren't saving IMO

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Old 02-24-2019, 05:56 PM
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Originally Posted by Shag View Post
Why funds? if the fund managers are so good why are they still working? Why not stock in individual "good" companies that will be here year after year? (Serious question)
And what companies would that be?
Heinz?
Kodak?
Nokia?
Xerox?
Blockbuster?
Segway?
IBM?
JC Penny?
Sears?
MySpace?

I can continue if you'd like.
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Old 02-24-2019, 06:02 PM
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Originally Posted by ChrisW21 View Post
And what companies would that be?
Heinz?
Kodak?
Nokia?
Xerox?
Blockbuster?
Segway?
IBM?
JC Penny?
Sears?
MySpace?

I can continue if you'd like.
None of those so no need to continue, but thanks for the offer.
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Old 02-24-2019, 06:02 PM
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Originally Posted by cfarmd View Post


what funds do you invest in? (Serious question)

whatever he says listen............ and listen good
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