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Most people won't save enough to comfortably retire so going the route of guaranteed lower returns makes the task even more impossible. It really is that simple
This right here is what I (and I imagine most of the "stock boys") believe. We might be proven wrong in the long run but history suggests this is correct.
This right here is what I (and I imagine most of the "stock boys") believe. We might be proven wrong in the long run but history suggests this is correct.
Hence the saying "History doesn't repeat, but it rhymes."
And if jotucker really believes CDs are safe, he should contemplate the saying "Safe as houses." Mortgage-backed securities were believed to be very safe, too. And they were - until they weren't. And very few saw that coming.
There's only so much one can do to avoid risk. That's why asset diversification is important.
You can bet all you want because that is all it is.
My preference is for assured retirement funds.
The only reason people are involved at all with the market gambling Casino is because mega-corporations successfully replaced defined pensions plans with Las Vegas style 401k's forcing people to gamble their retirement savings. Of course the only beneficiary on the long run will be the Jackels of Wall Street. The rapid decline of the share of the national wealth by the Middle Class is proof enough of their success in implementing their goals. Why work when all you have to do is take a percentage off the top is Wall Street's motto.
What's more, because of QE, defined pension funds are woefully underfunded (something that the Fed chooses to ignore) and pensioners will never see the retirement promises to them kept.
This is how money is skillfully stolen. Give a few silly bucks away on the stock market as a bribe for allegiance while stealing tens of thousands while no one is looking. The infamous Bernanke meeting with the major banks is an historical case in point.
That is what I've read about regarding pensions vs 401ks. The retirement burden (and risk) has been shifted from the employer to the employee. 401ks were never meant to be a replacement for a traditional pension, but a supplement.
That is what I've read about regarding pensions vs 401ks. The retirement burden (and risk) has been shifted from the employer to the employee. 401ks were never meant to be a replacement for a traditional pension, but a supplement.
Precisely what happened and the public tolerates a generalized shift from very predictable retirements which characterized most developed nations until recently to this new Wild West Show. The marketing pitch from mega corporations, politicians, and of course Wall Street is, you'll be much, much better off buying stocks ". Of course. They are all looking out for the working family.
i rather go down fighting and taking the shot vs almost guranteed failure because i need a higher draw rate then cash instruments can support
No failure at all. Just have to save appropriately. If a person can't save because there jobs available no longer provide living wages, well that is an all together different issue which is being debated in the political arena under different headings.
Precisely what happened and the public tolerates a generalized shift from very predictable retirements which characterized most developed nations until recently to this new Wild West Show. The marketing pitch from mega corporations, politicians, and of course Wall Street is, you'll be much, much better off buying stocks ". Of course. They are all looking out for the working family.
Rich, I stand somewhere in the middle of your view - and joetucker's on one side, and guys like mathjak on the other.
I believe the market is overvalued right now. Even with the recent declines. In fact I was one of the few on this board who predicted an overall decline a few months back. I'm also very frustrated about the money printing that has been going on.
But to suggest that people should sit on CD's until they retire isn't the way to go either. CD's will never beat inflation over time. Never.
They say you can't time the market. You know who says that? The big brokerage firms. You can time the market if you buy when others are selling. And vice versa. Some decent market timing and diversification is the way to go. Stocks and bonds. And don't be afraid to use a hedge if necessary (example DOG, which is an ETF that bets against the Dow)
Rich, I stand somewhere in the middle of your view - and joetucker's on one side, and guys like mathjak on the other.
I believe the market is overvalued right now. Even with the recent declines. In fact I was one of the few on this board who predicted an overall decline a few months back. I'm also very frustrated about the money printing that has been going on.
But to suggest that people should sit on CD's until they retire isn't the way to go either. CD's will never beat inflation over time. Never.
They say you can't time the market. You know who says that? The big brokerage firms. You can time the market if you buy when others are selling. And vice versa. Some decent market timing and diversification is the way to go. Stocks and bonds. And don't be afraid to use a hedge if necessary (example DOG, which is an ETF that bets against the Dow)
There are many other approaches to saving for retirement other than risking your hard earned retirement money on a stick market where 99.9% of the people are totally outgunned.
The traditional way was to save money and when excellent opportunities came calong, like a good solid house with land, then buy it and pay off the mortgage over time.
Investing in one's own business was another approach.
The economy and the stock market has changed considerably over the last two decades with the destruction of firewalls built after the Great Depression that were designed to protect the average Joe. This is a political issue and a manifestation of the Billionaire Class co-opting government and making it a tool of Big Business. I don't believe that the slot machines is an appropriate way to address this extremely important social issue.
that is why there are different allocations to investing . just so you are not betting the ranch on stocks and nor are you betting on inflation staying low with just fixed income only to be eaten up by it .
that is why there are different allocations to investing . just so you are not betting the ranch on stocks and nor are you betting on inflation staying low with just fixed income
One shouldn't be betting at all. Gambling with retirement money is something new but politicians and Wall Street spend billions in their attempt to convince workers it is the only way to go and is good for them. There is no one in D.C., Inc. gambling with their retirement. They've set themselves up with very tidy guaranteed pensions while passing laws putting everyone else's retirement in jeopardy. Politicians know the true way to a secured retirement.
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