My Retirement Is Disappearing Due to The Market
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- Опубліковано 29 тра 2024
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The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $250k since then.
@@lowcostfresh2266 I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
@@TomD226 Laurel Dell Sroufe is my adviser and she is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@TomD226 Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start the year on a woodnote financially..
@@lowcostfresh2266 THE NAME DROP!
These are very valuable strategies for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $109k now to put in the market.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.@@corrySledd
Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
Cant reveal much info, Becky Lou Gordon, is the shrewd advisor responsible for my portfolio success, it's only right you look her up and confirm yourself.
thanks bud! i will check her up, i really appreciate .
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
For a successful long-term strategy you have to seek guidance from a broker or financial advisor.
With the help of an investing advisor, I diversified my $400K portfolio across markets, and I was able to earn over $900k in net profit from high dividend yielding equities, ETFs, and bonds.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
My consultant is *Sharon Louise Count* She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. my monthly living expense is up $37500 from $16000 and I'm left wondering what retirement have in store for me 5years down the line, I'm ill-prepared tbh, my 401k worth about $620k and gains are zero-nothing and my stock portfolio?...OH WELL!
@Margaret I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
@@AUstinnesc This is exactly how i wish to get my finances coordinated ahead or retirement. Can I get access to your coach?
@@corrySledd Her name is "NICOLE DESIREE SIMON". I got to know her through my wife. She was handling hers effectively, and she's been doing same for me. It's my wife that has her number, but you could look her up and contact her yourself.
@@AUstinnesc Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
The guy asked a good question that didn't deserve their "drama queen" response. There are considerable options for that $180k that these "experts" should have focused on their response.
This is not the place for investment advice. Dave is the "getting out of debt" guy, but none of these people know anything about investing, they just want you to invest with their loaded mutual funds. There is absolutely zero reason to invest in a loaded fund these days. Active management doesn't work over 90% of the time. It does not beat a passively managed, low/no cost index fund, which is what over 90% of people should be invested in.
He is a little bit of a drama queen tho. Like if you're going to be that emotional about it, don't invest in the first place if you can't handle your stocks dropping 15%-20% at some point.
This guy should at least put his cash into a high-interest savings account. Many banks are paying close to 5%. T-bills are paying the same. He'd be earning 9k a year on his 190k. That's not nothing.
Finally!
Good call. People forget these options so easily
Also investing part of it in metals would be an option as well
You gave better advice than Dave and Jade
@@sami-9233 Investing in metals is a terrible investment strategy.
Watch out for banks that will auto renew your CD at .01% APY if you don't pay attention-
Everybody calm down! Dave’s retirement fund is just fine.
😂😝😜
Kinda gives that vibe, doesn't he.
😂😂😂
So is mine. Sure, it's down, just like Dave's. But it's coming back.
🤣🤣
Problem is recovery can be long-term, for example after 2008.
Down 30% takes a 50% recovery.
Stop measuring from an unrealized peak high and you won't be down 30%.
More like 40% but I get your point
But even if you reviver to be only down to 95% that close enough to being good.
100 minus 30 is 70 and 30 / by 70 is 42.5%
Yes I planned to retire in 2008 but I lost 50% of my life savings. However I did retire in 2016 after fully recovering. Hang in there.
Don't think he is a "Drama Queen". It's a legitimate issue when you're very close to retirement.
sounds like he didn’t move money into the official retirement buckets like he should have.
@D Please elaborate.
@D We are talking about the question asked in this video, aren’t we? Sounds like you are on a different topic.
He probably should have hired a SmartVestor Pro with the heart of a teacher™ to advise him where to put his retirement money.
They didn’t call the caller a drama queen, but was saying we all have that worrying side inside of us. If we didn’t worry, especially at a important stage of or life like you said, we wouldn’t be human. I think we’re all trying to say the same thing. Let’s go Brandon.
You know the main difference between the 2008 crash and now? Now, we have a much stronger social media presence across our society with echo chambers that bring together people who are terrified about their finances who only make the fear amongst each other worse, rather than learning how to properly handle it, adjust and figure it out like they did back in 2008…
Yup.
Before internet it was mostly among family,neighbors,and the workplace from what I observed.
More mutual support back then instead of spreading fear.
1000%
You know what the difference is between everybody harping on the 2008 nonsense compared to 1995? Not much... Not much at all. And people can still negatively influence each other with or without anarchistic evil algorithms to accelerate the process.
@@neuralismgamingtv4511 Lol the point went way over your head. The point is that it IS now accelerated due to algorithms and people in their own echo chambers 🤣🤣 Much different in ‘95 without that “acceleration”
Nah people were hysterical and running scared in 2008 as well
Elders in my area of work have lost over 400k in retirement funds & planned to retire within a couple of years but can’t. I’m not sure the show understands this is going on. They make it seem like the avg person is just complaining.
So tired of them not answering the question and saying the caller is wrong.
Out of touch.
A decent financial planner like the ones your employer probably brings in a time or two a year would have told those elders that they need to be rebalancing their portfolios once every 5-10 years based on their approaching retirement horizon and changing tolerance for risk.
Of course people get bad outcomes when they ignore sound advice.
@@BTrain-is8ch Exactly, this is not the place for savvy investors though. You need a plan going into retirement. You don't just reallocate the day you retire, you gradually reallocate over a decade leading into retirement. I'm probably 12 years away and I'm rebalancing every 2 or 3 years, gradually. All you're doing is making your portfolio less volatile, while still allowing room for growth. The problem is people are not involved, and don't bother to educate themselves.
Health. Consider your health ahead of numbers.
A lot of people don’t have the emotions to stomach investing. You have to ride the wave
That's way too abstract
The issue is that the person is 61 and wants to retire. You don’t take your money to the grave.
All about choices.
If they don’t want to learn or understand investing they can live below means. Put their money in safe places and deal with the consequences.
Or just keep working until they die.
Never thought we would have a pandemic either. Anything is possible.
Man made disasters are the worse.
You never thought we would have a pandemic, when historically there have been multiple pandemics that have wiped out millions of people? AKA Spanish flu, Black Plague, etc. You should read a history book sometime hahahah
Some people are not informed or smart than others.
@@jon2141 pandemic and plandemic are different tho...
@@superwhitt21 bingo
180000 is a little excessive (wish I had that problem)but I do like having nice lump sum in the bank. Don't have to call anyone or worry about taxes when I need a little something something!! Everything can't be about a rainy day..enjoy your life!!!
I know people who were at retirement age who lost a full 1/3 of their 401k in ‘08-‘09. They had to postpone their retirement for years. Yes it always comes back eventually. But not everyone has time on their side for that. So it’s a legit worry for them. Please don’t minimize their concern by telling them it’s just the ‘drama queen in your head’. That’s not helpful.
Keep that cash bro, you can get 4-5% guaranteed right now. Cash is king. Your investments will bounce back but always have cash available 2yrs worth if your retired or close to it.
This is the right answer. Opportunities coming. Stack cash, downsize if you can, and look for some low risk buying opportunities
@@jdek88 Convertible commercial property, rezone as residential.
A wave is coming.
Sofi pays great interest.
He should put it in a high yield savings account
Down markets are buying opportunities.
The bigger issue might if that person wants to retire soon (or needs to) they don't have the option of waiting 5-10 years to recover. If your retirement money pile just crashed quite and bit and your best option is to work 5+ more years, that's probably not too appealing. Should these folks panic? Absolutely not. But that doesn't make the decision easier.
Yes, it doesn't completely go away.
What can be loss is purchasing power for years.
Which if you retire at the bottom can and does have life time consequences
so close to retirement you should'nt be 100% invested in stocks, you should have like 50/50 cash/stock
@@moggekungen how do you know when to deleverage from aggressive stocks though?
I haven’t really seen an objective formula for that one.
@@willia3r Google "shifting investments for retirement" and then read what Schwab and Forbes and Kiplinger have to say. There is a ton of information out there on how to do it.
Needed to hear this thanks
They seem to be assuming that he is invested in well-diversified mutual funds.
Its in a retirement account, the writer mentioned.
@@chookchack That doesn't mean mutual funds. You can invest your entire retirement in a single stock, sector-weighted mutual funds, etc. If he was invested in a "growth-stock mutual fund" as Dave recommends, he would be doing pretty good this year. The fact that he's losing money right now suggests that he might have his eggs in the wrong basket.
This is where Dave and I disagree. Dave is a MULTI-MILLIONAIRE if not close to a billionaire, and good for him, btw. He does NOT have to worry about losing 10%, 20% as he personally will be fine. HOWEVER, those of us who are in their 60's and 70's who have a million or so, 10% is a great loss!!!!! I know what he is saying is correct but he has zero empathy for those of use who have worked and saved at this point in our lives. Regardless of what Dave says, this is scary for some of us and it frustrates some of us. It is ironic that over the years Dave has talked about how scared he was when he was in his 20's and says he "lost EVERYTHING" but now he makes fun of those who says the same things.
If you aren't expecting the market to drop 30% or possibly even 50% occasionally, you aren't being realistic about your investment.
You should plan ahead for that.
I'd probably have a year or two in cash (or whatever equivalent).... For whatever social security and other income sources won't cover. That way, I won't have to sell when the market is down.
Lesson: don’t retire during the bottom.
Or start shifting some of your assets to risk free investments as you approach retirement.
Or roll over your retirement at the top...like I did. Whoops.
@D Annuities. T-Bills. Even a HYSA can get you 4.25% + nowadays.
Well please tell us when we’re at the bottom. Or when the bottom was.
lesson, don't have 100% in stocks so close to retirement.
I think retirement is going to become an obsolete concept. If a person is healthy and able to work, why stop? I worked at a Seniors condo complex, and I saw these people getting bored, then taking whatever easy jobs were offered to them.
Thank you for this well-timed call. I’ve been struggling, now looking for a job at 75. 🤷♀️. I’ll try to settle down.
If a person has to make required withdrawals now, the remaining balance can be at risk of not being recouped.
I am 76 an I will take any job offered. I am trying to settle down as well.
Try working at your local school district!
@@michaelleahy6848 RMD's can be moved over to a investment account if not needed. Yes you will be paying taxes on the change. But less taxes per share.
@@taylorx2 Focus Groups pay
I like her. She is a good speaker.
No Bonds here in my mutual funds…. Equities only and it’s bobbing level…
I love that Jade!! It’s part of the process!! 🎉
Don’t know why she or the others are there ,offers nothing knowledgeable just sarcasm and they are full of themselves.
@@recabitejehonadab2654 Right. Up to this point she has studied music...
CD ladder and HYSA’s now make ok %
180k in a savings account does not loose value. It goes up due to high interest rates during inflation. 😊😊
Yeah I don't listen to Dave Ramsey. Money in the bank is safe and it's insured
Yet another idiot that doesn't know the difference between "lose" and "loose"
Sure it does. Food now costs 50% more than it did a year ago. Trucks with 100k miles are over $20,000. Inflation is eating away at your buying power like a ravenous beast. But your money is safe.
Trucks with 100K miles have been over $20,000 since the 1980s dude.@@damondiehl5637
@@damondiehl5637 Got money years ago from my parents after they died in car accident... Me and my two brothers our money is doing just fine in the bank.
And this is why you change to a dividend income strategy once you're near retirement!
If you’re investing in dividend stocks you will be just fine. Dividends come in weather your stock is up or down. Actually down is better if you are reinvesting your dividends
They can lower the dividend payout anytime they like. This happens all the time.
I am almost 76 and still working and happy that I can! Life is so much more expensive these days!
it costs a fortune nowadays to simply exist!
Enjoyed your parenting as much as your financial advice.
You can move your savings into a high-yield savings account and/or CD to get interest.
2008….mine dropped by 70k…..2021-present up down up down up down….a roller coaster not really gaining….not really falling.
Lol, it’s going to be 2040 and Dave still going to say 30 years ago. 😂 Love listening and following ❤️
I am buying stocks on sale right now. I am 10 years away from retirement.
The balance in retirement you have right now is way more than what you have put in.
Same here
Bingo!
I agree with this "Drama Queen" mentality. It causes people to do the wrong thing which is selling at a the wrong time--that's how you lose your money. History is our best snapshot or forecast to the future...
You only lose or gain once you sell. Other than that, you need tremendous patience and be willing to ride the roller-coaster of the market. Filled with feelings of fear, excitement, and relief.
Retirees facing financial challenges often couldn't save enough during their working years. Retirement decisions play a pivotal role. Despite my parents having similar years in civil service, my mom invested with a wealth manager, while my dad relied on his 401(k). As a result, my mom retired with approximately 3.7 million, whereas my dad retired with around 1.4 million
Yes, it's true. In my mid-50s now, my wife and I were on a similar path. In the last two years, I switched to her advis0r. While I haven't matched her long-term returns, I'm earning more. I'm making money even before retiring, and my retirement fund has grown significantly compared to relying solely on the 401(k).
It's unfortunate that many lack this information. I understand why people might panic. The lack of knowledge can be a significant obstacle. Personally, I've been generating over $33k passively through investments with an advisor, requiring minimal effort. Regardless of economic conditions, skilled wealth managers consistently yield returns.
I believe it's something I should pursue, but I've been procrastinating for a while. I'm uncertain about which firm to choose; they all seem similar to me.
Firms often prioritise their commissions over your profits, which can be frustrating. I prefer individual investors who earn a commission based on profits, not capital. Personally, I'm working with Stacey Lee Decker, and she's been outstanding.
I discovered her online by searching for her full name. I've sent her an email and scheduled a call; I'm hopeful for a response. My aim is to finish off 2023 on a positive financial note.
My retirement is down 20%. That's still 20%. It had to regain 20% to get back to where it is now then has to keep going up . And dave. Everybody is not a millionaire. Far from it. Quit making light of the losses many if us are facing. I've lost money and it will take many years to get it back. And I'm not stupid
You better off putting your money in a savings account
That’s right! Buy buy buy! Scared money has NO money!
Great responses!
Out of all the years I w listened to Dave and the B Bomb 💣 he threw was amazing lol
You can get 4-5% in a savings account currently. Let that cash work for you even with inflation rising at a slightly higher rate
Which bank? What savings?
@@taylorsmith9629 discover, goldman just linked up with apple to offer a 4.15apy, and a few others.
“Past performance is not a guarantee of future results”. I agree that historically, over the long haul, the stock market has gone up. What I worry about is that due to insane debt levels and moronic fiscal policy, I worry that the U.S. Dollar and the entire U.S. economy is heading for major problems of unprecedented levels. What we are doing now is simply not sustainable. This is all hitting about the time I’ll be retiring unfortunately.
This video made me check my ax which I only do once a month. Time for this person to look up “investors that follow the Dave Ramsey rules in my area”. That’s what I did. Not losing money and I take out $2400 a month.
the man is ready for retirement. not 45.. he doesnt have time to deal with another cycle.
It took 30 years for the DJIA to come back after the great depression.
It always comes back, How many died waiting?
There you panicwarts go again. Measuring from a high point to make your case as if everyone stuck every dollar they had in at the tippy top and lost it all.
Since were putting out hypothetical scenarios that never actually happened to any particular person, well here's another one. Had you dollar cost averaged through that very same Great Depression, you'd have still come out ahead.
Great point.
That is what this guy is actually worried about. While Dave makes fun of him in his guilded complex, this guy is looking at having to work longer. Probably at least two or three years.
@@bellmattwebb A small adjustment, makes a big difference.
It's called life. Are you going to stop living today because you will die sometime in the future? No! So why stop investing today?
Did anyone watch the video? I feel like most people are freaking out but the video encourages otherwise. Thanks for the great content Dave and Jade!! God bless all!!!
Imagine at 75 and waiting for the future.
😂😂
Invest and live off dividends. Ditch the 4% rule and you never have to worry about where the market is or sell assets for that matter.
What are we gonna do when DR retires? I don't want him to ever retire, cuz he helps so many people all over the world.
Jordan came , Kobe , lebron . Greats come and go . The universe always replaces
We will have to put ourselves on beans and rice...
Either that or one of the others will.take over.
GenX sitting here with a box of popcorn
Sitting with my Boomer b/f. Half empty/half full.
If you are on margin account you can lose everything when margin calls come and you either have to put more money in or sell stocks
Does anyone really think we aren't heading for a financial disaster? Anything can happen. Don't trust in your money. It can go away tomorrow.
USD CASH NOW! SOUTH AMERICA RETIREMENT NEXT!
Nasdaq and Russell 2k are both down around twenty five percent from their highs, but up from their lows. Russell up around five percent, and the Nasdaq is up around twenty!
Personally, I don't invest, I'm more amused when everything comes crashing down.
I am amused as well with my investments reinvesting over 12k dividends monthly buying cheaper shares.
The 2020’s were pretty rough too, depending on when you put it… I know some people that their stocks went down quite a bit, recovered a little, but still. 2020’s were almost as bad as 2008 IMO, for some people.
Over the last 50 years, we have a lot of lost decades for the market. Dave and most boomers ignore this fact. If 61 facing a lost decade in front of me, I would be concerned as well
4.5 % preferred deposit at Merrill Lynch
Wonder what this person invested in? YTD, S&P is up ~7.75%, Nasdaq is killing it, up ~19%.
Peanuts compared to what I’m going to make shorting NASDAQ, S & P and DOW as we collapse the rest of the year.
@@philkarkovice5337.... I think that didn't work well as we are up a lot in 2024.
"Historical averages do not dictate future outcomes."
We shifted a large chunk of our 401K into bonds (secure investments like insurance etc) until stocks rebound. Also, cash into T bills and I9's. Not forever, but at least we are not losing. It took us almost 10 years to rebound from the 2008 fiasco....we left everything in the stockmarket. Retired now so can no longer afford to do that.
Terrible idea.
I didn’t do anything to my 401k in 2008 but increased contributions.
Didn’t make sense for me to sell stocks that were paying out and reinvesting over $6k/month in dividends.
My 401k dropped from about $450k to $220k then began rising in 2009 and broke even before 2012..
Crossed 1.5 million in 2019.
Currently 1.7 million down from 2.1 million but still paying over $9k
per month in reinvested dividends.
Retired debt free at 49 in 2020 and easily living off pension with cash,savings, other investments,qualified dividends,annuity,etc. for backup if needed including large emergency fund.
@@blackworldtraveler3711 you're amazing!
@@blackworldtraveler3711 what a skill to have!
Lol this is awful advice. you want to be in stocks before they rebound, not afterward
He needs to move that money to Ally bank. I’m currently getting 3.68%. My last interest payment was $270 with $86k in there. He could be making $600+ a month while also able to pull the money out anytime he needs.
And at least place your money in a high rate savings account.. for eg SoFi or any other.. easily gives you 4.2% of interest
I see the drama!
Best time to buy is during the dip :D
Great advice on a lifetime time frame. How about multi-generation time frame? Seem like a big event is due. Just food for thought.
Don't have kids.
We just had a pretty damn big event in 2008 and 2009.
You think we need another one?
As they say, it always comes back, until it doesn't. DQ certified.
Retirement is only "disappearing" if you try to retire in the States. Open your horizons and consider retiring abroad.
My local bank is paying 4.3% for passbook savings accounts.
@@Austenfan177 There are actually a couple.
And what is the inflation rate,and how much are the banks getting in interest after they lend your money.
@@adamchavez999 Brandon's regime has lied so much about inflation that it is difficult to tell. In my own budget I would estimate that inflation has been running somewhere over 10% annually. That's food prices, fuel, medical, utilities home prices etc.
@@johannesswillery7855 so then keeping money in a bank is not very wise or keeping a large amount of dollars.
@@adamchavez999 The person in the video stated that they were getting zero for the money they had in an account. So getting 4.3% is preferable to losing 10% plus.
So we should keep buying stocks? What do we do?
If you concern about a market being down ruining your retirement then your not prepared for retirement. Bucket strategy is they way to couter Market declines.
I get scared when I think about retirement. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
Thanks for talking to me as if I'm a 5-year old. Sometimes... That's exactly what I need. 🤣
I love Jade's earrings and nails!
I’ve only been investing 18 months or so and haven’t gained anything yet but I guess I’m in for a good couple years👌🏼
You guys are so much fun to watch together! What a team!
💯
💯
Can't stand jade's agreement noises when Dave speaks
This is someone who hasn't ever revisited their retirement or their financial plan. You shouldn't have all your money in stocks at 61. Fixed income to providing good rates now, and is, well, fixed. He needs to visit a financial planner if this is how he sees it.
if your only source of income is your 401k(ie. no rental properties or pensions), u might consider the standard advice which is to transition into bonds and securities when u retire.
01:05 You don't know that. Japan's market hit it's high point in 1991. It hasn't been back since. Just saying.
Didn't the Dow take 25 years to come back to the level it was in 1929 at the peak? At that point 25 years later, inflation made it worth less, so what did it take...about 35-40 years to recover to the worth it was in 1929 dollars?
It’s 2023 and I wasn’t even born yet back then.
All I know is my 401k dropped more than 30% in 2008,broke even before 2012, and tripled crossing 1.5 million in 2019.
Currently down about 35% but making over $9k/mo. reinvested dividends with 60% of my portfolio invested.
No not even close, with dividends. It was five or so years.
In 1929 right before the crash there was wild speculation, driving the market way way up.
I tripled my money buying stocks at the bottom of the 2008/2009 crash. Down markets are just buying opportunities. And if your stocks pay dividends and you have them set up for reinvestment, you just get that many more shares each time the stock pays out.
Diversified Diversified Diversified!!! That's what all financial experts always tell us !!! So to be safe having cash in your hand is very important to ride the wave for few years!!
It all depends how old you are. I worked with lots of people who had to delay retirement in 2008 because even the safe investments went down bad. It's a different story if you're 20-50
Yes Jade and David. I agree with you both on this topic fully. My unsolicated advice is quite simple, only use SPY and let it sit. Maybe do an OTM covered call by 10%. Example to illustrate: If SPY trades at $400 then do a covered call at 440 strike. It is frosting on the cake.
I’m retired and laughing from the Philippines
Hmmm. But who wants to live in the Philippines?
100 pct wrong. When you're close to retirement, major downswings can mean additional years of work to invest it back. That means retirement can be postponed for up to a half a decade, depending on the drop.
I personally do not have anything against investing in the stock market, but I don't think it is for everyone. Any person that has the ability to save over one hundred thousand dollars, has exceptional willpower in my opinion. Such a person will more than likely not squander their 'nest egg' after retirement. The opportunity cost of not investing in the stock market is real, but it is a concept that only those trained in either Economics or Finance can really appreciate. For the average 'saver' who is not comfortable with investing, then I think they should just continue to save! Being able to save money is a virtue all on its own, which I think is sometimes not appreciated as much as it should be!
Investing in the stock market is stupid easy. Just open an account at Vanguard or Fidelity or ETrade and put your money in index funds.
Cash in the bank is a losing proposition. Even at 5% interest, 7-9% inflation means you are losing buying power every moment your money sits in the bank.
My 401K and other investments are doing just fine. Seven years after retiring.
It seems to be going down more and more since 2008
If it make you sick to your stomach to invest in a good fund or ETF it’s time to invest.
Found the attitude toward the caller somewhat condescending.. why call names? The person was looking for advice and reassurance, Dave name called and his sidekick mimicked the same sentiment. Disappointing.
This is why asset allocation is really important. You should have a portion of your assets dedicated to growth even if you are in or nearing retirement, but you also have to have a "protected" bucket with things like bonds and income generating equities. Sequence of returns risk is a huge factor in an individuals retirement so I don't think it's being a "drama queen" to worry about something like this.
Bonds are tanking also.
Thousand
You do realize bonds are tanking also, right? Make sure you're informed before trying to come across as a know it all.
@@jeffb.4800bonds are tanking, but if you purchase individual bonds and hold them to maturity, you’re reaping a very good yield. The problem is most people invest in bond funds which are just mutual funds made up of multiple different bonds and the price of the fund is based on the fluctuating prices of the bonds, not the true yield. I believe he was saying you should have some of your money in bonds, not bond funds, so he’s actually right in that sense. The problem is people associate bonds with bond funds because that’s the easiest thing to get in to, when any body can also purchase an individual bond/bonds on their own, they just don’t do it.
Lots of people in the comments who don’t understand bonds
2008 "the great recession" was actually by definition a depression. 2001 only fully recovered for less than a year before 2007.
She is 61 and wants to retire. You guys don't hear what she says. Just took about what you think
She should be 20 years away from retirement
These two are not listening to what the caller is saying or the letter writer is saying. He's about to retire and he's had a big loss. Nobody wants to retire after a big loss. It's not that we don't know that the market is cyclical, but when it bottoms out right when you're trying to make that move it is very upsetting. Just sayin'.
I don’t think he’s a drama Queen for being concerned. He said he’s retiring soon. That would concern me at that point.
Y’all done made Dave cuss, uh oh!😂
Usd is tanking.
There is another certainty that history shows us. 100% of all super powers have fallen. To think we are special and will never is delusional.
Daniel 2:44
It's a good point but I don't think it justifies Doomsday planning. Most superpowers historically didn't just fall off the face of the earth in a day.
They generally went through somewhat gradual change.
There's plenty of countries that can have their lineage traced back to the Roman empire even if the Roman empire isn't still what it was 2k yrs ago.
I would agree that it's foolish to think that America could never ever ever change, But like I said the changing and reformation of powerful entities historically has been a gradual process that happens over many years.
It's not like with past empires all of a sudden everybody just woke up one day and it wasn't there anymore.
Don’t matter.
I retired debt free in my 40s and enjoying life now.
We have all been through history class.
yup
And 100% of sunny days are followed by rainy. Another pointless data point.