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I think it's different this time. We actually have a government in power now that is hell bent on destroying the USA. And what do we have waiting in the wings? Frigging idiots who have been schooled in Wokeness and CRT etc, we also are hell bent on destroying the USA because they think it's the thing.
What do you mean by the phrase destroying the USA? I need to know how to prepare for it.
Seniors like my parents have a lot of their wealth tied up in the stock market. With interest rates low for saving accounts and such, where else are they supposed to put it? Haven't bonds done poorly? I know there is a government bond paying 7.5% and I told them about it, but not everyone knows about this stuff. All I know is a lot of people have been living off the gains in the stock market for awhile now and got used to it.
I wonder if gold will ever catch on as a stable alternative, but that often gets whacked during recessions as well. Most seniors don't find gold or crypto all that attractive. I agree though, the stock market is traditionally not the ideal place for seniors.
That's their choice. I've talked to my mom about it but moving out of equities in her case doesn't make a great deal of sense. If your parents need to rely on a 4 percent drawdown, however, it does make sense to change focus from growth to preservation for that portion of their retirement. The rest they can leave in equities as they don't have immediate need for it and it can continue to grow and be passed on in inheritance.
That's their choice. I've talked to my mom about it but moving out of equities in her case doesn't make a great deal of sense. If your parents need to rely on a 4 percent drawdown, however, it does make sense to change focus from growth to preservation for that portion of their retirement. The rest they can leave in equities as they don't have immediate need for it and it can continue to grow and be passed on in inheritance.
When we were approaching the time for must take RMD, we started switching from growth to really stable stocks with excellent dividends. The money guy still says no every time we say sell some Costco.
I do feel like boomers have a rough patch ahead of them. The majority did not really ride the last stock market wave, the market quadrupled but the average retirement account did not. Then with inflation, the current retiring class is the one smacked the most as they have the most cash assets accumulated, and bonds haven't been a worthy option. They were more impacted by Covid than young people who could ignore the sickness or restrictions. And healthcare is going through a staffing crisis now due to longstanding issues in the sector.
I've lost some decent amount of money here with the decline but at age 28 that just dampens my enthusiasm, it doesn't make me nervous like it would at 67.
Ah, that $6 trillion stimulus is the gift that keeps on giving. Well, minus the loss in retirement accounts that now comes to $2.6 trillion in net stimulus.
Exactly (the bold). We were advised to NOT pay off our mortgage, although we could just with the money we have "just sitting there" in our regular savings account, but we are starting to wonder if that might be a good idea for us.
As inflation goes up, existing debt gets cheaper. So if you're confident that you'll be able to financially weather whatever you expect to happen, keeping the debt makes sense. Myself, I've eliminated as much debt as possible going into this, so that whatever I have at the beginning is mine regardless of what happens with my financial situation. Only loans we have are the mortgage and tractor. Not thrilled with either of them belonging to the bank but we have equity in both.
As inflation goes up, existing debt gets cheaper. So if you're confident that you'll be able to financially weather whatever you expect to happen, keeping the debt makes sense. Myself, I've eliminated as much debt as possible going into this, so that whatever I have at the beginning is mine regardless of what happens with my financial situation. Only loans we have are the mortgage and tractor. Not thrilled with either of them belonging to the bank but we have equity in both.
But if you're just going to stuff the cash in the mattress you should just pay of the debt. The mattress stuffing will devalue at the same rate as the principal on the debt anyway, save some interest expense, keep the monthly nut lower in case of interruptions of cash flow. Having a bunch of cash stuffed in a 0% mattress or .05% mattress, err I mean bank, isn't great when there's inflation.
I do feel like boomers have a rough patch ahead of them. The majority did not really ride the last stock market wave, the market quadrupled but the average retirement account did not. Then with inflation, the current retiring class is the one smacked the most as they have the most cash assets accumulated, and bonds haven't been a worthy option. They were more impacted by Covid than young people who could ignore the sickness or restrictions. And healthcare is going through a staffing crisis now due to longstanding issues in the sector.
I've lost some decent amount of money here with the decline but at age 28 that just dampens my enthusiasm, it doesn't make me nervous like it would at 67.
Eh at least they're the last generation that had access to pensions. The Millennials that have gone through several such downturns in prime earning years while also being priced out of real estate with no savings to speak of much less a healthy 401k are in for a rough ride come retirement. I don't know how Medicaid/SS is going to handle that.
how much did you "make" in 2021? In 2020? in 2019? Did you bemoan along with the MSM when the Dow shot up from a 20,000 low to a 30,000 high in 2020?
This is the funny part. S&P goes from 800 in 2009 to 4,700 in 2022, an amazingly historic bull run.
Now it drops from 4,700 to 3,800 and it's like OMG we're doomed, and we have people wondering how seniors will survive when the stock market is back to where it was in early 2021.
I think the market briefly dropped about 20% in 2011 under Obama, and recovered by 2012. How on earth did you manage to lose 75%? Even if you were 100% in the most aggressive stock fund in your 401k and stupidly yanked all your money out right at the bottom you wouldn't have lost 75%
It's almost as if you're not telling the truth here, I'd love to hear how you pulled off this amazing feat of losing 75%.
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