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Old 01-17-2008, 06:24 PM
 
Location: WA
5,396 posts, read 21,404,537 times
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2006 was not especially good for me but was positive. Unfortunately we have started this year with terrible returns so looking at the drop from the peaks of October we are down substantially. I view my retirement investment plan (our only source of income) with a 20% pad before I start making adjustments so no panic yet, but I am down well over 10% from the peaks of last year.
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Old 01-17-2008, 06:32 PM
 
Location: Lovelock, NV - Anchorage, AK
1,195 posts, read 4,994,760 times
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So when is it going to stop dropping, they say it's only on paper but dang it's still scary
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Old 01-18-2008, 03:16 PM
GLS GLS started this thread
 
1,985 posts, read 4,848,399 times
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Quote:
Originally Posted by Tressa View Post
So when is it going to stop dropping, they say it's only on paper but dang it's still scary
It probably won't stop dropping until the market perceives that people in general and the government(s) (globally), reduce the gap between production and consumption. The market abhors fiscal irresponsibility that you can't successfully lie about or cover-up. (Some companies like Enron were able to "keep a fart under water" for a long time.)

On a personal basis, you are correct that it is scary, frustrating, etc. The problem is that it is "only on paper" for people with a long time horizon, i.e. those who have no need to access their funds now. For the retired or those just about to retire, it is not just "on paper" because their draw from the portfolio is dramatically affected by the devaluation of their nest-egg. For example, a 4% annual draw from a portfolio that was worth $500,000 last year, but only $400,000 today, translates to $333/month less to live on.
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Old 01-19-2008, 10:01 AM
 
Location: WA
5,396 posts, read 21,404,537 times
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Quote:
Originally Posted by GLS View Post
...
The problem is that it is "only on paper" for people with a long time horizon, i.e. those who have no need to access their funds now. For the retired or those just about to retire, it is not just "on paper" because their draw from the portfolio is dramatically affected by the devaluation of their nest-egg. For example, a 4% annual draw from a portfolio that was worth $500,000 last year, but only $400,000 today, translates to $333/month less to live on.
Exactly right! My holdings have dropped 6% YTD (11% from the peaks of the last year) which will translate to a similar reduction in income.
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Old 01-22-2008, 02:40 PM
 
Location: New Jersey/Florida
5,440 posts, read 10,526,253 times
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People have to realize its not always,GOOD<GOOD<GOOD, with investing in stocks. I'm still in the hole from the dot com bust when I lost almost 200K from stocks that I received calls from daily from a broker with a large firm. Most of these stocks were rated strong buys from 14 out of 15 anaylists. They told me at least you can write off 3,000 a year in losses. Well guess what I'm 51 so when I'm 120 years of age I'll finally be even. Just watching CNBC, same thing last week most of the know it alls tell you to buy Apple it's down 25 dollars since 4PM. Lots of people think it only goes up but it goes down to unfortunately. Well I'm happy now with my 5 percent interest on CDs that I locked in for 2 years. I won't be rich but at least I know there will be food on the table.
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Old 01-22-2008, 02:51 PM
 
Location: Forests of Maine
30,687 posts, read 49,469,539 times
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Quote:
Originally Posted by JERSEY MAN View Post
People have to realize its not always,GOOD<GOOD<GOOD, with investing in stocks. I'm still in the hole from the dot com bust when I lost almost 200K from stocks that I received calls from daily from a broker with a large firm. Most of these stocks were rated strong buys from 14 out of 15 anaylists. They told me at least you can write off 3,000 a year in losses. Well guess what I'm 51 so when I'm 120 years of age I'll finally be even. Just watching CNBC, same thing last week most of the know it alls tell you to buy Apple it's down 25 dollars since 4PM. Lots of people think it only goes up but it goes down to unfortunately. Well I'm happy now with my 5 percent interest on CDs that I locked in for 2 years. I won't be rich but at least I know there will be food on the table.
Ouch.

My father kept playing with stocks when I was a teen, one week he made money, and the next week he lost.

That was enough for me.

I saw my grandparents making money consistently from owning rentals, so I went that way.

We each have to try our best, and unfortunately not everyone is going to prosper.

And yet forums like this, are still filled with folks hoping that they will be the ones who make a fortune from stocks.

Never trust a Financial adviser who earns less than you do, never trust a tax-advisor who pays taxes.
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Old 01-22-2008, 06:01 PM
 
Location: home...finally, home .
8,236 posts, read 18,521,294 times
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I am so glad that I pulled on most of my money from stocks and put it into 7% bonds back in August. I will never make up what I lost in 2000, but I will not have to worry , bypass the financial section of the news or throw away my unopened statements at least.
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Old 01-23-2008, 10:36 AM
GLS GLS started this thread
 
1,985 posts, read 4,848,399 times
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Quote:
Originally Posted by nancy thereader View Post
Nancy, if I may ask, what is the credit rating on those 7.5% bonds of yours? That sounds tremendous for investment grade debt.

I am not sure. The person who has my Annuity found them when I asked him to sell the stocks last summer.
Actually , I get 8.4 % with my TDA in my Teachers' Retirement plan.

I just am too nervous to get back into the market. I would always everyday dread hearing that bell on the news reports that reports on the Dow Jones.
I have a small teacher's retirement plan, but it is through the university I taught at years ago. It is called TIAA-CREF. The TIAA is the fixed portion and the CREF (College Retirement Equities Fund) is stock/mutual funds.
The CREF portion lost about 3% last Quarter, and so far this year I am down 12%.

PS My broker called to say, "Money talks". Yeah, mine is saying "Goodbye".
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Old 01-23-2008, 10:45 AM
 
Location: Denver, Colorado U.S.A.
14,174 posts, read 23,295,360 times
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Here's what I find ridiculous about 401Ks. I recently readjusted mine, and it didn't lose anything in 2007, but my degree isn't in financial invesment, so it's somewhat of a crap shoot for me. They send me info. (booklettes) on all their funds every now and then, and it might as well be in Chinese. The average person, even with college education, can't make sense of all this. I also admit I have little interest in the stock market, bonds, etc. Hell, I don't even know the difference in a stock and a bond! I just know enough to keep it diversified. At least back in the days of pensions, someone who knew what they were doing controlled all the investment.
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Old 01-23-2008, 12:46 PM
 
259 posts, read 1,183,099 times
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denverian, your situation is more common than unusual. As a result, there is now a movement from fund houses towards marketing "target date" funds, which will take care of that for you based on only two inputs from you......expected retirement date and risk tolerance. Perhaps your employer will add that as an option.

gls, you have lots (and lots) of company with those numbers. But, you can't be an equity investor and measure success day by day (unless you are actually a day trader). CREF is doing no worse than the majority of equity funds out there (and I'm sure they delivered a good ride to you for the last 4 years.)
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