People tend to think about retirement like you take all of your retirement on day 1. If you need 20 years of income before you die why would you care if you lost a little in years 1-3 if keeping it invested meant you made out and them some in years 4-20? Your entire retirement shouldn't even be invested all the same way either - the money you're going to use initially should be treated differently than money you don't need for 15+ years.
Investing Strategies. What is your move?
- Thread starter PimTac
- Start date
65? Young wippersnapper!
I would say if you are in an Edward Jones managed account where they take a commission for putting you into their chosen investments, it is time to do a little research and think about self management.
The trouble with using high cost investment firms like EJ is the percentage of gains the fees take away. If you are paying 1% a year of your estate for advice and active management, it doesn't seem like much. But if your average return on that managed account is 5% (low for the past few years, probably a reasonable estimate for the next few) , that 1% fee is 20% of your gains. That is a big number.
Don't listen to a loudmouthed forum poster like me, but also don't listen to a high pressure salesman working on commission like your EJ account executive. Do your own research. If he isn't beating the S&P500 index with your account by the amount of his fees, over time, it is time to move.
PWMDMD & ArrestMe already made excellent points. I'd add time horizon is really key IMO. I mean if I'm living until 100 a decent return at 80 matters, probably less important if I'm living until 81. From today until 80 though is a long time to shake off losses you are seeing today, and if you flip to the extreme of being uninvested on 100%, you can be pretty certain inflation is still going to devalue your savings.
I'll second this! Edward Jones employs brokers and salespeople who love commissions and AUM fees - not fiduciaries who have to have your best interest in mind.
I already see a 40% drop from its highs, in a cash cow, Amazon.
Seriously considering cashing out everything and buying it, tough decision because I’m still fully invested and I like what I own but maybe time for some churn in one of my accounts.
Amazon makes some serious cash and most don’t know that cash comes from the cloud computing platform not from retail sales. I really don’t care much for the company but my perception of these high numbers is the stock is now a bargain while it takes a beating from a one time $7 billion loss on an EV investment.
Oh well I most likely will procrastinate and regret not doing it someday but then again like anything stock market maybe I’ll be glad I didn’t
When I said it's really going to hit the fan, I wasn't talking about stocks and investments. Here's a better clue to my thoughts: when the light of a thousand suns appears over several American cities, do you want to be at work or at home? I want just a little time to try to enjoy myself without being stuck at work before that happens.
A little dramatic? At that point who cares and if that doesn't happen I still have responsibilities. I'm less than 50 miles from Boston and so if that happens I'd rather go quickly in the blast than die from radiation sickness.
Mathematics is and should be based on sound principles. The markets? Well, that is a whole other universe. Numbers get twisted and pulled. Emotions are involved.
The research on the past 100 years, which is all statistically derived, is pretty clear and unambiguous.
1. Time in market is the most important factor in generating wealth
2. Timing the market is impossible over the long run
3. Expenses and fees eat away at compounding in an insidious but very significant way.
4. People's emotions are the number one reason why people lose money.
Put these together and it equals - buy inexpensive diversified total market index funds and stay the course. It really isn't any harder than that.
...and I realize boring. I play a little for the thrill in a brokerage account but it is a fraction of my other tax-advantaged accounts.
I don’t mean this to sound cold. I’ve said it before and I think it’s something the public in general misses.
From the sound of your posts it doesn’t sound like you ever had a retirement account balance. It sounds like you had a lot of unrealized gains which is completely worthless until the day you turn those unrealized gains into cash.
Don’t get me wrong I love to look at my portfolios and see my unrealized gains but it’s all worthless till the day you turn it into cash.
If you have somebody else handling your money for you you can’t really complain. After all you’ve selected the person instead of yourself.
There are so many publications that publish the yearly five year 10 year 20 year track history of conservative funds with low costs that you could put your own money into.
Index funds are real sweet in a multi year market run up, where we go from here nobody knows but I don’t think it’s over yet. Even though I don’t read as much as I used to I still enjoy Kiplinger‘s personal finance magazine, every once in a while it gives me an idea. I still get Barons on and off for the fun of it but I don’t really think too much of it anymore.
So many companies track every category of funds and it’s really simple to pick stuff out on your own versus someone else with the mch less knowledge than the people that run the funds
Yeah, don't look at your retirement funds... Better to give it time. I hear family freaking out over YTD but to me it's just a number; an unrealized gain or loss.
Better to look at the 5 year or max numbers. Long term for me.
I have some money in DRV and it’s up nicely today.
We need three 75 basis point increases, followed by three 50 point increases.
Time to face reality.
It will be very painful….. but necessary in the long run.
We need three 75 basis point increases, followed by three 50 point increases.
Time to face reality.
It will be very painful….. but necessary in the long run.
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It's all good. My 401k/profit sharing should hit on Monday meaning another $30K of discounted funds into the old portfolio. I did not try and time the market at all - just took this long to figure everything out after going on extension.
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