Bad week for stocks

[Creeper]

I-Series savings bonds are a good option, 1.3% above inflation right now.

I am at my annual limit already. But T-Bills are paying over 5% too. Both are state tax free if you live in a state with an income tax. Our here is over 8% so a state tax free investment a bit of a help.

 

[Sarge]

The Stock Market is all about 20 year return. at some point you need to just get out and put it in bonds or CD's. Picking the right moment is the key. Greed will ALWAYS defeat you.

Big difference between greed and staying the course….

 

[gtb1943]

Big difference between greed and staying the course….

The smart thing to do is watch it when you are about five years out from retirement and then make the call. But greed is a sneaky thing...

 

[nightrain]

All in on technology. Bumps in the road are inevitable.

 

[CalPolyTechnique]

My 401k skyrocketed between 2016 and 2020.

I just hope we can get through the rest of the year without a major recession.

luuuulz.

 

[Bigdog]

My 401k skyrocketed between 2016 and 2020.

I just hope we can get through the rest of the year without a major recession.

Mine did too but in October of 2018 it took a massive hit in one month because someone shot their mouth off about what they were going to do. Everyone’s 401k took a big hit.

It also skyrocketed in 2021, and over the last year.

Yes it did. The Stock Market hit an all time high that it has never seen before. One thing that people forget is I believe the average return from the stock market was 16.2% from 2012-2016. The average return from 2016-2020 was 14,4%. Unfortunately we were living off the previous economy doing so well but then Covid hit and then it all went down. Hopefully, it will return. Most experts say that the stock market wants consistency over chaos. I am hoping we can get back on track.

 

[morasp]

Having retired here are some things I wish I would have done differently

1. Keep a meticulous budget and find out exactly how much it costs to live comfortably
2. Subscribe to a retirement planning program and determine how much you will need to sustain that standard of living. I didn't find the MaxiFi planner until after I retired but it was exactly what I needed to know how much I could afford to spend each year to maintain my standard of living and not have my money run out before I do. It has the State and Federal tax codes built in, the social security rules built in, and even optimizes when you should make withdrawals from retirement accounts.
3. Once you retire put your savings into some sort of inflation protected investment like I-Series savings bonds and the rest is on cruise control.

 

[Creeper]

Having retired here are some things I wish I would have done differently

1. Keep a meticulous budget and find out exactly how much it costs to live comfortably
2. Subscribe to a retirement planning program and determine how much you will need to sustain that standard of living. I didn't find the MaxiFi planner until after I retired but it was exactly what I needed to know how much I could afford to spend each year to maintain my standard of living and not have my money run out before I do. It has the State and Federal tax codes built in, the social security rules built in, and even optimizes when you should make withdrawals from retirement accounts.
3. Once you retire put your savings into some sort of inflation protected investment like I-Series savings bonds and the rest is on cruise control.

Excellent advice. I worry about what is going to happen when the post-pension people start to retire. I don't think they are going to have enough to live the way they want to. Inflation hurts retirees more than anyone. Sure social security gets a bump every year with inflation but SS is SUPPLEMENTAL income, not enough to live off of. Also, Medicare is not free, completely.

I am lucky. I have a pension. I was grandfathered in when my company shut the plan down. But pensions are fixed and inflation destroys pension payments over time.

If I could go back to talk to myself at 35 or even 40, I would slap me in the head about my investment strategies. I was too heavily invested in the company I worked for, and was not nearly as aggressive with my 401k plans as I should have been. Now, as a retiree, I can't be too aggressive but the rate of inflation will bury me if I do not hedge against it.