Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,030
|
Post by Rukh O'Rorke on May 9, 2022 17:52:32 GMT -5
So - spoiler! it's getting tough out there.....stocks and bonds are both down and inflation is up.....hope you aren't shocked Are you doing anything differently? After the big runup seemed to have me retiring years earlier than I ever thought possible, I may be back to regular joe stats. I only recently (past 2 years) started diversifying out of 100% stocks. I really wanted to put my current 401k into something like a money market fund, but there was nothing that didn't potentially lose principal, even though it was super tiny, I kept out of it on principal. Hate my 401k provider, as an aside, so I kept it in stocks in protest, hoping for the best....sadly not the best...I just wanted a money market but they didn't have one.... about 2 years ago I bought some bond funds, then sold out of them quick and decided to keep with stocks, so far that was the better decision as they went up while the bonds went down, would still be about -8/10% and stocks went up a good chunk, now down, and overall up about 5% from purchase. so not a bad move....based on data as yet....so I've really kind of struggle to get away from stocks. I've put 10k into ibonds this year, and 10k last year. I'm experimenting with TIPS for additional "safe" money, but still struggle with what to do non-stock wise. I'll up my TIPS exposure - which is just a few hundred right now as I try to firgure out how they work and how I want to use them, but basically, I feel like I just need to keep loading into stocks, and awaiting the recovery, whenever that may be. what I'm thinking with the TIPS is that I'll just have a percentage of my yearly budget covered by the TIPS when they mature and that will lessen any need to cash out of stocks. buying 5 and 10 year durations. so thinking I'll do 10k ibond and 10k TIPS/year and the rest in stocks as per usual. And wait it out? I guess it's a strategy, If it is still bad in 5 years, obviously I'll rethink , or just take ss and call it a day.....
|
|
Deleted
Joined: Apr 26, 2024 2:46:27 GMT -5
Posts: 0
|
Post by Deleted on May 9, 2022 18:23:13 GMT -5
I am handling it by mostly avoiding news about the stock market. Probably not the best thing to do, but that’s all I got.
|
|
saveinla
Junior Associate
Joined: Dec 19, 2010 2:00:29 GMT -5
Posts: 5,222
|
Post by saveinla on May 9, 2022 18:33:05 GMT -5
I think the gains over the past 2 years were crazy and the market is just coming back to where it should be normally.
I dont think we can do much except move some money like you are doing and just pray that we have enough money whenever we retire or are forced to retire.
|
|
giramomma
Distinguished Associate
Joined: Feb 3, 2011 11:25:27 GMT -5
Posts: 21,302
|
Post by giramomma on May 9, 2022 19:06:09 GMT -5
I didn't even know the stock market was down until this afternoon. LOL. I'm not doing anything different. But, I'm still 8-10 years out from retirement.
|
|
souldoubt
Senior Member
Joined: Jan 4, 2011 11:57:14 GMT -5
Posts: 2,745
|
Post by souldoubt on May 9, 2022 19:09:40 GMT -5
Like saveinla I thought the market was overvalued and have thought that for a while but I'm not an expert and I don't try to time the market so I just stayed the course with index investing. Cheap money and low rates fueled the stock and housing (varying where you live) markets and a correction is overdue. By the start of next year I'll know whether or not we want to buy more I bonds which will depend on when we will need that money. Other than that we've got 20+ years until retirement so we'll stay the course with the 401K/IRA/529 and look for buying opportunities if they arise.
|
|
tallguy
Senior Associate
Joined: Apr 2, 2011 19:21:59 GMT -5
Posts: 14,147
|
Post by tallguy on May 9, 2022 19:52:08 GMT -5
Not doing anything differently. Retired several years ago and I am still 100/0 stocks/bonds. Yes, it is down quite a bit. Yes, it will probably go down further. Not much of a problem if you don't need to take the money. If the market goes up I take money out for spending. If it goes down I convert to Roth so I don't sell low. Works for me either way. It will be up again soon enough.
|
|
jerseygirl
Senior Member
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 4,768
|
Post by jerseygirl on May 9, 2022 20:03:45 GMT -5
Did sell one stock, Boeing, and bought a defense related ETF. Not looking at my accounts but the stocks are all good companies so expect accounts to return - when?? We have SS and annuities that cover living expenses without worrying but like to see accounts increasing , NOT decreasing. Oh well these are times we planned for safety
|
|
chiver78
Administrator
Current Events Admin
Joined: Dec 20, 2010 13:04:45 GMT -5
Posts: 38,510
|
Post by chiver78 on May 9, 2022 20:22:41 GMT -5
I am handling it by mostly avoiding news about the stock market. Probably not the best thing to do, but that’s all I got. ☝️ this. I'm also making up for lost time in travelling. I'm still looking for deals, but I don't ever expect that to change regardless of what my financial situation is.
|
|
raeoflyte
Senior Associate
Joined: Feb 3, 2011 15:43:53 GMT -5
Posts: 14,720
|
Post by raeoflyte on May 9, 2022 20:46:24 GMT -5
We're putting more money in then ever but only because we have snowflake money coming in.
|
|
bookkeeper
Well-Known Member
Joined: Mar 30, 2012 13:40:42 GMT -5
Posts: 1,692
|
Post by bookkeeper on May 9, 2022 20:59:43 GMT -5
We are trying to invest in more real estate. DS#1 had twins last year and could really use a bigger house. We could really use an investment that is not on paper.
We have been retired since fall of 2014. There have been investment downturns since that time. We will see how deep this one has become.
We keep two years expenses in a money market/bond fund. Things get really bad, we can borrow from our life insurance policies without having to sell any assets as well. That would carry us another year or so.
We watched the 2007-08 retirees struggle with zero growth in their portfolio. I remember them talking about how the rug was pulled out from under them. I like to think I learned from their struggle and insulated myself from a downturn. The pandemic has also played a part. We have spent half of what we would have, if we had been allowed to travel at will. In the end, we want to be healthy and self sufficient. So far, so good.
|
|
stillmovingforward
Senior Member
Hanging on by a thread
Joined: Jan 1, 2014 21:52:58 GMT -5
Posts: 3,066
Today's Mood: Don't Mess with Me!
Location: Not Sure Yet
|
Post by stillmovingforward on May 9, 2022 21:38:48 GMT -5
Not really worried about it. I'm still 10 - 12 years from retirement. I'm just hunkering down, watching my spending, keeping clear of debt, and reminding myself that now is a good time to drop money into the market. And my house loan is at 2.85% interest so that's pretty much free money.
|
|
|
Post by minnesotapaintlady on May 9, 2022 22:08:45 GMT -5
Not doing anything different. There isn't much one can do but wait it out. If you sell to move to something safer then you lock in the loss and even the bond index funds are down 10%. I'm still pumping the 401K money into the S&P 500. For me, the only real stressor is DS's one college account. I think he's down close to 30%. But, we shouldn't need to tap it for 2.5 years at least (3.5 if he fails linear ) I started thinking about needing more safe money last year since I plan to retire in <checks widget on phone> 2268 days. I figured I wouldn't be comfortable pulling the plug without 2-3 years of expenses in something safe in case the market took a dive right after I retired...70-100K in I bonds ought to do it which is going to take me the next 6 years. It sucks to look at though. I think I'm down over 100K despite shoving a ton in the last 5 months.
|
|
resolution
Junior Associate
Joined: Dec 20, 2010 13:09:56 GMT -5
Posts: 6,980
Mini-Profile Name Color: 305b2b
|
Post by resolution on May 9, 2022 22:14:21 GMT -5
I would like to invest in ibonds, but we bought a historic home last year and have already dumped 100k into renovations, so I am barely keeping up with funding both our roths, my 457 plan, and my pension plan. I am hoping that our renovations will slow down by the end of the year so I have spare money for the ibonds, but we still have a few expensive items on the agenda.
I may delay my retirement further. I was eligible for my pension last August, but due to buying the house I decided to keep working until June 2023 when I have my 30 years in the pension plan. But at the rate we are going I may decide to work longer. I like my job and my coworkers and I don't really want to leave.
|
|
Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,365
|
Post by Tiny on May 9, 2022 22:31:01 GMT -5
I'm not doing anything differently - I'm working my "plan".
How is this different than the market plummet in March 2019 or when the Real Estate bubble popped in (2007/2008)? Why do you think we're stuck the way we are for 5 years? Historically recessions last - what - about a year?
I do realize ALL the countries are experiencing higher inflation... And it sure seemed like the market (and real estate) are overvalued... I'm not surprised by the drop.
The market hasn't plunged like it did in March of 2019...
|
|
Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,365
|
Post by Tiny on May 9, 2022 22:32:51 GMT -5
I'm not doing anything differently - I'm working my "plan". I have been slowly piling up "cash" more or less as I was anticipating being jobless (ie reaching FI). I don't plan to have to touch any of my 'invested for the long term" money for 2 years... So the market can do what it wants it doesn't really change my plans dramatically.
How is this different than the market plummet in March 2019 or when the Real Estate bubble popped in (2007/2008)? Why do you think we're stuck the way we are for 5 years? Historically recessions last - what - about a year?
I do realize ALL the countries are experiencing higher inflation... And it sure seemed like the market (and real estate) are overvalued... I'm not surprised by the drop.
The market hasn't plunged like it did in March of 2019...
|
|
|
Post by minnesotapaintlady on May 9, 2022 22:49:08 GMT -5
I'm not doing anything differently - I'm working my "plan". How is this different than the market plummet in March 2019 or when the Real Estate bubble popped in (2007/2008)? Why do you think we're stuck the way we are for 5 years? Historically recessions last - what - about a year? I do realize ALL the countries are experiencing higher inflation... And it sure seemed like the market (and real estate) are overvalued... I'm not surprised by the drop. The market hasn't plunged like it did in March of 2019... I think you're thinking of March 2020. The main difference is in 2020 it was a 5 week long sharp panic decline at the start of covid followed by rapid growth. We're at what 5 or 6 months of decline now and inflation and rising interest rates and the Russian situation and all the supply chain issues make it seem like this one might stick around a while. Recessions might only last a year or two, but it took 7 or 8 years for the stock market to recover after the dot com crash. A little tidbit that is in the back of my mind when I'm thinking of retiring in 6 years.
|
|
buystoys
Junior Associate
Joined: Mar 30, 2012 4:58:12 GMT -5
Posts: 5,650
|
Post by buystoys on May 10, 2022 4:26:15 GMT -5
We set our AA with an eye to the market going down. We're at 65/30/5. Since there wasn't a deep plunge on April 1, we took our annual distribution as we normally do. If the markets are still in a decline on April 1, 2023, we'll skip a withdrawal. That's why we have the cash bucket. I know it's not the optimal AA, but it allows us to sleep well at night and that's worth it. We retired in 2013, so we're not going to change anything now.
|
|
plugginaway22
Well-Known Member
Joined: Jan 2, 2011 10:18:42 GMT -5
Posts: 1,655
|
Post by plugginaway22 on May 10, 2022 6:25:50 GMT -5
For us, retiring at end of 2021, this decline has been a bit unsettling. We had about 2.5 years of expenses in cash for this very reason. But when you aren't adding to the pot, only watching total net worth decline, you just need to look away. We took 2 trips so far in the past 4 months, spent about $5K total which I have no regrets about. We have around 3 years before anything invested will need to be sold so I am hoping recovery happens before that time.
We also have an open LOC on our paid off house of about $100k. Another way to cover expenses if markets not recovered, although this would be a last ditch option for me.
|
|
susana1954
Well-Known Member
Joined: Feb 23, 2021 18:50:55 GMT -5
Posts: 1,398
|
Post by susana1954 on May 10, 2022 6:31:10 GMT -5
I tried not to look but was aware. Yesterday I realized I was down about $100k on a $640k (back then) portfolio. It is in a Vanguard 2025 retirement fund so a mixture.
I'm ok. Pension + SS cover my income. I'm even able to save about $1500 a month although lately I have spending on home improvement.
And I think that is my answer. I am trying to get my house ready for my twilight years (LOL because I am only 68) before the costs get even worse. My painter did the exterior for what he charged 11 years ago, but he quoted my BFF twice as much to do hers. My new hot water heater cost 2k installed. Inflation is going to be bad, everyone.
But like everyone else, I keep on keeping on.
|
|
Deleted
Joined: Apr 26, 2024 2:46:27 GMT -5
Posts: 0
|
Post by Deleted on May 10, 2022 7:32:21 GMT -5
Not doing anything different. There isn't much one can do but wait it out. If you sell to move to something safer then you lock in the loss and even the bond index funds are down 10%. Yeah, it's been bad. It's been AWFUL. But I survived the huge drops in the financial crisis and this, too, will recover. What I learned from the 2001 dotcom bubble burst is that the good stuff recovers. The weak performers do not. (Or, as Warren Buffet says, "When the tide goes out you can see who's been swimming naked".) I've lost hundreds of thousands last time I looked. I keep reminding myself that my withdrawal rate is still sustainable and between SS and my two $900/month non-COLA pensions, I have decent income independent of my investments. It doesn't help that I'm blowing a lot on travel and charity this year. My total spend is still in line but it seems like bad timing. Two fortunate decisions: I decided to file for SS on my own record this year rather than wait another year till age 70 so my net SS almost doubled, and in early April my advisor called and suggested that I get out of tech and growth stocks. I dumped a bunch of them (tax consequences were manageable). I'm sitting on about $500K in cash. The people on the Early Retirement Board flame people who have advisors but mine really came through. When to get back in? Ha. I have no idea. For awhile when things started to tank I was throwing small amounts at ONEQ, the NASDAQ ETF. Bad move. I'd tell you that the market goes up every time I leave the country and I AM leaving on Thursday but then the last time I left the country was March, 2020. Never mind.
|
|
wvugurl26
Distinguished Associate
Joined: Dec 19, 2010 15:25:30 GMT -5
Posts: 21,698
|
Post by wvugurl26 on May 10, 2022 7:48:47 GMT -5
I refuse to look. I wouldn't change anything so why torture myself. I also have 20+ years to retirement.
I do regret not dumping that one stock of my grandma's sooner. It fell $5/share while I was trying to work out the tax consequences. I was looking at dumping those that do not pay dividends but if she owed taxes I'd never hear the end of it. And it's hers so the decision is up to her.
|
|
tractor
Senior Member
Joined: Jan 4, 2011 15:19:30 GMT -5
Posts: 3,455
|
Post by tractor on May 10, 2022 10:16:57 GMT -5
I'm at least 10-years out from retirement, so for now all the losses are on paper. Hopefully things will rebound, and I continue to invest every month.
|
|
Deleted
Joined: Apr 26, 2024 2:46:27 GMT -5
Posts: 0
|
Post by Deleted on May 10, 2022 10:25:09 GMT -5
I'm at least 10-years out from retirement, so for now all the losses are on paper. Hopefully things will rebound, and I continue to invest every month. That was me during the financial crisis. I kept investing new money and yes, it did work out.
|
|
raeoflyte
Senior Associate
Joined: Feb 3, 2011 15:43:53 GMT -5
Posts: 14,720
|
Post by raeoflyte on May 10, 2022 17:39:47 GMT -5
Dammit- I checked. I'm down 15% but also 20+ years out from retirement.
|
|
dannylion
Junior Associate
Gravity is a harsh mistress
Joined: Dec 18, 2010 12:17:52 GMT -5
Posts: 5,195
Location: Miles over the madness horizon and accelerating
|
Post by dannylion on May 10, 2022 19:24:05 GMT -5
My equities investments are down about 20%, but almost everything is still worth more than I paid for it (except that pesky Vodafone, which I'm hanging onto to harvest for losses if I need or decide to sell something). I am remaining calm and staying the course, buying some things that now have much more attractive share prices. Still have a lot (about 2/3) in savings bonds and cash, so I'm just going to ride this out and keep looking for bargains.
|
|
Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,365
|
Post by Tiny on May 10, 2022 20:52:21 GMT -5
I'm not doing anything differently - I'm working my "plan". How is this different than the market plummet in March 2019 or when the Real Estate bubble popped in (2007/2008)? Why do you think we're stuck the way we are for 5 years? Historically recessions last - what - about a year? I do realize ALL the countries are experiencing higher inflation... And it sure seemed like the market (and real estate) are overvalued... I'm not surprised by the drop. The market hasn't plunged like it did in March of 2019... I think you're thinking of March 2020. The main difference is in 2020 it was a 5 week long sharp panic decline at the start of covid followed by rapid growth. We're at what 5 or 6 months of decline now and inflation and rising interest rates and the Russian situation and all the supply chain issues make it seem like this one might stick around a while. Recessions might only last a year or two, but it took 7 or 8 years for the stock market to recover after the dot com crash. A little tidbit that is in the back of my mind when I'm thinking of retiring in 6 years. Yes, march 2020. The market hasn't dropped as much as it did during that 5 week long drop...
|
|
MN-Investor
Well-Known Member
Joined: Dec 20, 2010 22:22:44 GMT -5
Posts: 1,937
|
Post by MN-Investor on May 10, 2022 23:56:43 GMT -5
Back when my DH retired in 2016, we decided that 40% stocks, 60% bonds/cash/other was the right asset allocation for us. When Covid hit, I did sell some stock and move it to bonds. That was a mistake, but, oh well. So I have learned. I'm staying the course. For the most part my everyday expenses are covered by Social Security. I have funds in a money market fund and a short term bond fund which I can use for larger expenditures, contributions, and major gifts. I guess I really don't worry about the fluctuation in the valuation of what I hold. ( Oops, down 14%) As long as they keep producing interest and dividends, I'm fine.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on May 11, 2022 0:23:43 GMT -5
I'm just trying to cut some spending. There are things we could drop but don't see the need for now.
Going to do some I bonds, but not much else.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on May 11, 2022 9:16:02 GMT -5
I'm thinking about it more, I don't spend much on gas. I top off once or twice a month is all. I'm putting very little miles on my car. Mainly because I'm only having to go to a lot of my docs every 3 to 6 months now, so that helps. And I order more stuff from Amazon instead of driving to shop for it.
And just like locally a box of sliced cheese is $15.98, at Sam's is $7.98, so I do pay attention where I buy. I go to Fresh Thyme for fresh veggies, smaller quantities then Sam's. Big Lots for some canned goods and cereal. Sometimes, Walmart for some canned items like apple juice, and Krogers has sales too, so I do pay attention to grocery prices and of course we buy meat every few months in quantity.
Meds are my high priced items.
Hubs is the one that buys a lot of gas for mowing and property care.
|
|
steph08
Junior Associate
Joined: Jan 3, 2011 13:06:01 GMT -5
Posts: 5,450
|
Post by steph08 on May 11, 2022 19:48:08 GMT -5
The downturn finally kicked my rear in gear to get to a financial advisor. We met today and will consolidate my old accounts (3) into one. He also recommended switching to the Roth 401k instead of the lre-tax 401k that my company offers because I have a lot of pre-tax investments already and need to balance it out.
Besides that, we are 20 years out from retirement, so just staying the course. The advisor thought we were on great track to meet early retirement goals - our projection looked good without adding SS, so I'm planning on just staying the course and shoveling money in. Even if we plan on $1k/mo SS each, we should have plenty to retire in mid to late 50s.
|
|