U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-28-2015, 04:32 PM
 
2,037 posts, read 1,945,753 times
Reputation: 3449

Advertisements

I think if the OPs father thinks in % instead of $ he'd be a lot better off mentally. Instead of losing $15k that would be losing just 3%, which is a regular occurrence in stock funds.
Reply With Quote Quick reply to this message

 
Old 02-28-2015, 05:47 PM
 
71,480 posts, read 71,652,652 times
Reputation: 49068
Quote:
Originally Posted by Ariadne22 View Post
I just got a newsletter from TRP saying essentially the same thing - average 5-6% return in equities over the next decade.
it makes sense since retracements are always easier and basically what we did is retrace back to where we were . forging ahead and trail blazing always is tougher than finding your way back.

i think planning around higher numbers is a mistake. much better getting a raise down the road if things turn out better than taking a pay cut by gussing wrong and over estimating..
Reply With Quote Quick reply to this message
 
Old 03-01-2015, 05:18 AM
 
Location: Mount Airy, Maryland
10,459 posts, read 5,920,270 times
Reputation: 16151
Quote:
Originally Posted by mathjak107 View Post
it makes sense since retracements are always easier and basically what we did is retrace back to where we were . forging ahead and trail blazing always is tougher than finding your way back.

i think planning around higher numbers is a mistake. much better getting a raise down the road if things turn out better than taking a pay cut by gussing wrong and over estimating..

Exactly. Past earnings never guarantees future results and if that poster is expecting 8% minimum going forward he/she will be disappointed.
Reply With Quote Quick reply to this message
 
Old 03-02-2015, 02:34 PM
 
Location: Pennsylvania
12,462 posts, read 4,213,163 times
Reputation: 9771
Quote:
Originally Posted by DaveinMtAiry View Post
1. Yes it will The stock market always comes back
2. That bear market was the worst drop since the crash of '27. It won't happen again in your lifetime let alone his. It was more like 50%, not 70% for what it's worth.

"The stock market always comes back".


BE VERY CAUTIOUS WITH THIS STATMENT.


The market only came back in 2009 because we had MASSIVE government intervention aka...the market is rigged with 0% interest rates. Eventually those rates are going to have to rise.


The stock market only came back from the 30's crash because we had a massive world war. That's the only thing that saved this country's economy.
Reply With Quote Quick reply to this message
 
Old 03-02-2015, 03:42 PM
 
Location: Tampa, FL
27,798 posts, read 26,196,040 times
Reputation: 14611
Quote:
Originally Posted by Loudmouth View Post
BOTH!

Everyone says that he should not be concerned about bear markets which could reduce his money by 50-70% because the stock market always comes back. Just because it came back this time does not mean it will come back after the next Bear Market in his lifetime.
1) Hope you're kidding about the inheritence. It's not his reponsibility to provide you with one and it's definitely selfish for you to expect one.

2) He's definitely in need of a financial advisor. But something tells me he's too cheap to pay for one.
Reply With Quote Quick reply to this message
 
Old 03-02-2015, 03:44 PM
 
Location: Tampa, FL
27,798 posts, read 26,196,040 times
Reputation: 14611
Quote:
Originally Posted by fumbling View Post
I think if the OPs father thinks in % instead of $ he'd be a lot better off mentally. Instead of losing $15k that would be losing just 3%, which is a regular occurrence in stock funds.
He needs to look at providing himself an income stream.

https://hbr.org/resources/pdfs/comm/...t_planning.pdf

Last edited by BucFan; 03-02-2015 at 04:51 PM..
Reply With Quote Quick reply to this message
 
Old 03-28-2015, 11:17 AM
 
2,037 posts, read 1,945,753 times
Reputation: 3449
Quote:
Originally Posted by Ariadne22 View Post
I just got a newsletter from TRP saying essentially the same thing - average 5-6% return in equities over the next decade.
I think the next decade will be a generational bull of amazing proportions, with double-digit annualized gains. The Dow, nasdaq and S&P will all be at record highs about 2 to 3 times their current levels (Dow can be the proverbial 36,000). Of course I could be wrong too haha.
Reply With Quote Quick reply to this message
 
Old 03-28-2015, 11:23 AM
 
71,480 posts, read 71,652,652 times
Reputation: 49068
current research says not . dividends account for 1/3 of the markets gains . dividends are tied to interest rates and both are about 2%. that means about 6% returns or below average returns for the next 5 -7 years are on the radar.

hope they are wrong but the numbers don't look great . .
Reply With Quote Quick reply to this message
 
Old 03-29-2015, 04:37 PM
 
39,214 posts, read 20,338,563 times
Reputation: 12736
Quote:
Originally Posted by oddstray View Post
The 'value' of our retirement funds took a bath in 2007-2009 (as well as during previous downturns). But it has since more than made that up. Your dad needs to look longer term at how his investments are performing.

Besides, it's not real money until you get scared enough to sell the stock at a loss.
This was my thought. Even though no one likes to lose value, cash flow is what is important, preferably steady increasing value with a cash flow.

I was reading don't worry so much about value (reasonable) if it puts off enough and steady cash flow. Would you say this is true?
Reply With Quote Quick reply to this message
 
Old 03-29-2015, 05:06 PM
 
39,214 posts, read 20,338,563 times
Reputation: 12736
Quote:
Originally Posted by BeerGeek40 View Post
"The stock market always comes back".


BE VERY CAUTIOUS WITH THIS STATMENT.


The market only came back in 2009 because we had MASSIVE government intervention aka...the market is rigged with 0% interest rates. Eventually those rates are going to have to rise.


The stock market only came back from the 30's crash because we had a massive world war. That's the only thing that saved this country's economy.
BeerGeek, I've read the same thing about the 30's crash. History gives Roosevelt's and his New Deal credit for the recovery but it's not true, the U.S. was headed for another depression and the economy was saved by World War I.

I too believe the stock market is being propped up. That's why investors hang on Yellen's every word. I'm invested but not as I think I should be because of the government propping. Higher interest rates mean that consumers don't have as much disposable income and must cut back on spending and investors will react causing a drop in the stock market. For the invested money I just have to remain calm.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top