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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.
Not everyone is losing money in the market downturn. The short sellers make money when stocks go down, they made 114 billion just in the month of January 2022! Just imagine what the shorts made this year so far! They screw the retail investors out of their money by borrowing their shares from the brokerage firm to sell short, forcing the price of the securities down, so they make a fortune in a market downturn while your stock plummets in value or share price. I lost money to the short sellers years ago, never again, I am mostly out of the market. Some countries like Germany don't allow short selling.
The stock market has its up and down cycles. It does not care who is President. It just happens that Biden is President now. It could have been Trump and there is nothing he could have done about.
if you're a retired senior, you're supposed to already be out of the stock market for any money you "need". You could be in a dividend ETF and earning 4+% INCOME (not unrealized gain/loss)
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?
You do understand that if you get out of the Stock Market. —- you have a massive Tax billon your Capital gains.
We took some profits in 2021 + the required Minimum Distribution. Our Taxes were a little over $50,000. That’s a big hit while living on a fixed income.
Quote:
Originally Posted by davidt1
The stock market has its up and down cycles. It does not care who is President. It just happens that Biden is President now. It could have been Trump and there is nothing he could have done about.
Thing is —
It wasn’t happening during the .Trump years — it did happen in less than one year under the TeamBiden Regime.
Quote:
Originally Posted by ClaraC
Here's the deal.
In January 2021, how did you feel in general about your prospects for a comfortable retirement, and your investments?
That's where you are now. If you were happy with how you were situated then, you're in that position again.
I know it seems like a huge loss, but if you felt comfortable 18 months ago, you can feel comfortable there again.
Here’s the deal —- I was pretty sure we would be on this situation, High Inflation & waiting for a Recession hoping it doesn’t go into a Depression. Took some profits, paid the horrible Tax bill, held on to Cash to get ready for the buy-back when the bottom drops. We lost 75% of our 491K during the Obama crash.
We moved into some commodity’s and Oil & Gas ….. I’ve seen this movie before and know how it ends.
Down about $200,000 this year so far and I can handle that —- many can’t and I feel sorry for them.
I doubt the American Citizens counted on this — but their were plenty of warnings that this is EXACTLY what we would get.
Status:
"I don't understand. But I don't care, so it works out."
(set 3 days ago)
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Reputation: 50634
Quote:
Originally Posted by Kibby
You do understand that if you get out of the Stock Market. —- you have a massive Tax billon your Capital gains.
We took some profits in 2021 + the required Minimum Distribution. Our Taxes were a little over $50,000. That’s a big hit while living on a fixed income.
Thing is —
It wasn’t happening during the .Trump years — it did happen in less than one year under the TeamBiden Regime.
Here’s the deal —- I was pretty sure we would be on this situation, High Inflation & waiting for a Recession hoping it doesn’t go into a Depression. Took some profits, paid the horrible Tax bill, held on to Cash to get ready for the buy-back when the bottom drops. We lost 75% of our 491K during the Obama crash.
We moved into some commodity’s and Oil & Gas ….. I’ve seen this movie before and know how it ends.
Down about $200,000 this year so far and I can handle that —- many can’t and I feel sorry for them.
I doubt the American Citizens counted on this — but their were plenty of warnings that this is EXACTLY what we would get.
Whether or not American's "counted on this" correction, what was lost was 18 months of gains. Not 20 years, as some seem to be perceiving this.
After a meteoric rise. We are now back to where the DOW was in Jan 2021, when we were ecstatic about how unbelievably, historically high it was at 30K. We're back there. To that height.
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.
When you buy stocks, you own shares, not dollars. The dollar value of your shares will swing wildly up and down over time, due to unpredictable changes in mass-psychology, mass-perception of value, interest rates, world events (like pandemic and wars), media narratives, interest rates, and whatever Jerome Powell had for breakfast that morning.
If you want to own stocks, you have to be comfortable owning an asset class that greatly changes in value from month to month. You cannot perceive temporary paper losses as “real” losses. If you do, you probably shouldn’t own stocks.
You don’t lose anything until you sell. If you DO sell, that means you bought high and sold low; generally a losing strategy.
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