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I keep seeing people all excited that the greedy exec's may be getting screwed now on Wall Street. But stop and think about the rest of us. Most of us put money into our little 401k's to save for retirement. The stock market is taking a beating, therefore our mutual funds are going down. My account is down 35% this year alone. How is that good for us? Why is it that everyone is saying anyone who invests in the market is greedy and deserves what they get. We are ALL in the stock market if we have 401k's and IRA's.
Yes we are. I got out of equities last October and into a stable MM fund.
Haven't lost any principal. Saved a few friends 401k's as well and today each and every one of them thanked me.
We're sitting on the side getting a measly 2-3% interest but at least we have preserved our capital.
Yes we are. I got out of equities last October and into a stable MM fund.
Haven't lost any principal. Saved a few friends 401k's as well and today each and every one of them thanked me.
We're sitting on the side getting a measly 2-3% interest but at least we have preserved our capital.
Yes, but playing the market is always dangerous. Most experts say keep putting in the same amount in both the ups & downs of the market to get the best average. So far it is now going so well.
I wasn't too concerned until it dawned on me that AIG was where I have the annuity that is paying us a hunk of our retirement income. If it goes, we'll have to get by on just Social Security. We can do it because we own our home. But I don't think it will be fun.
But I agree, it's time that the Stock Market and other "investments" get more grounded with a dose of common sense.
I keep seeing people all excited that the greedy exec's may be getting screwed now on Wall Street. But stop and think about the rest of us. Most of us put money into our little 401k's to save for retirement. The stock market is taking a beating, therefore our mutual funds are going down. My account is down 35% this year alone. How is that good for us? Why is it that everyone is saying anyone who invests in the market is greedy and deserves what they get. We are ALL in the stock market if we have 401k's and IRA's.
Thoughts?
Until some of these execs get investigated ala Enron style, i dont think they are screwed since they've cashed in so much in compensation. They'll find a way back on their feet again.
As for us, we're not entirely screwed, and its happened before. Equities are down down practically everywhere, even internationally. For my 401k and other savings, this means continuing to diversify internationally and increase my commodities and foreign exchange exposure.
Sh*t rolls downhill. I'm sure that the big boys at Merrill and Lehman had plenty of time to move their personal assets around before their companies sharted.
Too late for me to bail out...might as well ride it and hope for brighter days down the road...probably 5yrs or more. Glad I'm young and time is on my side for now.
Sh*t rolls downhill. I'm sure that the big boys at Merrill and Lehman had plenty of time to move their personal assets around before their companies sharted.
Too late for me to bail out...might as well ride it and hope for brighter days down the road...probably 5yrs or more. Glad I'm young and time is on my side for now.
I am 45 years old, so I figure I will ride up the next wave several years down the road and then pull out and invest in a safe money market into retirement. I hope the market comes back for me to do this. I don't have enough time to ride a second downswing and hope for it to return again.
Actually, the greedy execs are among the few that will be spared. They either bankrolled millions and stashed them abroad or will leave with golden parachutes that they will invest abroad. They saw this coming and they planned for it. Sure, their pension might be wiped out, but they made many millions and they knew better than to invest it in the toxic waste they were marketing to the masses.
Their underlings, however, will take an enormous beating, as their retirement plans are wiped out. I, too, sold out of most equities last summer, but like many others in company or union pension plans, I don't have the option to sell those at will. One of mine owns AIG in the portfolio. Before that, it owned eTrade, Fannie and Yahoo! It will take a decade or more to get back to breakeven there. Factor in inflation and it might be impossible. There are lots of losers in corporate pension plans in every industry in every city.
Many individual investors parked retirement dollars in respected mutual funds run by top-tier companies that dabbled liberally in CDOs, mortgage-backed securities and other derivatives without full disclosure. More retirements wiped out by investors who thought they were investing prudently.
Then there are all these banks going out of business that will raise unemployment and put even more homes on the market, prolonging a real estate recovery even further. That will put even more people in the loser category.
Even responsible savers are losing money every day. When you're safely invested at 2-3%, and inflation is running 4-5%, you're losing ground. Getting an inflation-matching return means exposure to a higher level of risk. Of course, the FDIC could buckle under the excess and fail to meet its obligations. Then even the safest investors would be wiped out.
So it appears that the best case scenario is to preserve capital, only to lose it to inflation... and entrust it to the promises of the already-stressed FDIC. The only winners I see in this game are the Wall Streeters who made a killing and walked away with it. If they adjust their lifestyles, they can probably even retire comfortably on the multi-millions they have socked away in the Caribbean. No way they're invested in the U.S.!
I have no issue with what is going on... natural market correction to the stupid ARMs and loose lending practices... I am also dollar cost averaging into my 401(k) and other investments, so I just keep doing that... as I continue to buy the stocks, mutual funds go down, I by more shares (buy low)... as the market turns around this year (or next year) the value of those extra purchased shares just go up.... I'm in it for the long term, so this is a prime buying opportunity.
I entirely liquidated all the funds in my IRA last Oct. when the DOW was at 14k into cash reserves. Haven't lost a thing! I knew this thing has reached maniacal proportions when I attended a homebuying seminar in '06 when they were selling $600,000 homes for $500 down.
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