Investors....come in please!

[JeffKeryk]

Originally Posted by PimTac
A lack of financial education and discipline are the key reasons more people don't invest or even save. That starts with parents.

Good advice, but what if the parents don't know?
I believe no one should get outta 8th grade without a basic understanding of banking and credit. Time value of money. Property values.
No one should get outta high school without an understanding of personal finance.

I have used Calculus exactly 1 time in my career.
And that was only proof of concept, used to support a concept; never used in production.

 

[Wolf359]

Originally Posted by daves66nova
Originally Posted by Mr Nice
Originally Posted by daves66nova
I don't see mine ever growing. So it's the same as just stuffing it in your mattress? Does nothing, just sit there.

Exactly what are you invested in ?

$8,358.73
David — Roth IRA Brokerage Account — i don't know if this is the correct info. I also saw this; Vanguard Federal Money Market Fund (Settlement fund)


You are basically in a cash account which is why you don't see it growing. As mentioned many times in this thread, you should have invested it in an index fund. With the market down now, if you think it's going to drop more, you can dollar cost average which means investing a certain amount at fixed intervals so that when the market is down, you buy more shares as it's priced lower and when it's higher, you end up buying less shares. Normally you'd do this at a fixed interval in a fixed time period so you don't end up second guessing yourself. As I mentioned earlier, I had invested 2k in an IRA for 7 years til the market collapsed back in 2000. At that point before it collapsed, it was worth about 40k not 14k. Even after it collapsed, it was down to 25k. That was about a 40% drop. Rode it out and it's higher now. When you stay in, in the years where the market goes up 30% in a year, that can really goose your returns especially when you have a decent amount.

 

[ARCOgraphite]

Originally Posted by Mr Nice
ARCO

Which high dividend paying stocks do you like ?
In the past I've had REITs, utilities and telecom (T, VZ) for dividend income.



I don't give advice - for free

But I will say I added KMI to the mix last year.

Energy infrastructure; Pipeline + terminal

Your turn

- Ken

 

[Cujet]

Well, I just lost a sizable chunk of my retirement in this downturn. My stuff was hit hard and continues to drop. I guess I should pull it all out now, before I lose everything.

 

[PimTac]

Originally Posted by Cujet
Well, I just lost a sizable chunk of my retirement in this downturn. My stuff was hit hard and continues to drop. I guess I should pull it all out now, before I lose everything.




If the market is going to go that low then there will be bigger worries.

A lot of people get whipsawed in these situations.

 

[JeffKeryk]

Originally Posted by Cujet
Well, I just lost a sizable chunk of my retirement in this downturn. My stuff was hit hard and continues to drop. I guess I should pull it all out now, before I lose everything.

Please don't panic. It is generally a poor strategy.
The market is down for the year but is still in wonderful territory.

Plus, if you sell, there is a tax burden.

 

[supton]

Originally Posted by JeffKeryk
Originally Posted by Cujet
Well, I just lost a sizable chunk of my retirement in this downturn. My stuff was hit hard and continues to drop. I guess I should pull it all out now, before I lose everything.

Please don't panic. It is generally a poor strategy.
The market is down for the year but is still in wonderful territory.

Plus, if you sell, there is a tax burden.

I wonder if waiting for the uptick, wait until it recovers, then rebalance according to your risk level. As one gets older and closer to retirement (or needing the money) one starts to pull from high risk to medium risk to low risk. Or sometimes one's outlook changes.

For myself, I'm a couple decades out, so leaving in high risk (if anything, now would be the time to buy, no?) is the best course of action. Then again, I'm mostly in an index fund so I don't think it's dropped too much.

 

[PimTac]

The indexes have dropped around 10% in six days.

Nothing wrong with buying the dip but don't bet the farm.

 

[ARCOgraphite]

Originally Posted by Cujet
Well, I just lost a sizable chunk of my retirement in this downturn. My stuff was hit hard and continues to drop. I guess I should pull it all out now, before I lose everything.


You didn't loose money per se, you lost value of upside potential by not crystal balling this route.

It not gone until you pull it out.

But If you move to cash or bonds now, you will loose any upside potential.

Just the opposite reaction, I just threw 20G in from moneymarket cash to a DOW index fund FSKAX.

Not a ton of $$ but that's all the chips I want to play with , I had already moved big in to short term bond funds last year.

Back a decade ago I rode 2008 back from the bottom without throwing in the towel to really big gains.

Problem is the market value now compared to 2008.

I may be right, I may be crazy. Time will tell.
The above is NOT to be construed as offered advice, rather, just a story.

 

[Mr Nice]

The older you get.... the less investing risks you want to take.

Cujet should talk to a CFP to see what options he has.

Like I said before, someone hoping to have enough gas in the tank till the end of the year.

 

[PimTac]

Hopefully nobody here is all in on TSLA. This downturn has hit them hard. They have lost roughly a third of their share price.

 

[PimTac]

Just checked the futures for tomorrow. It is looking ugly. A lot of time yet before the open but a 5% drop is not out of the question.

 

[ZeeOSix]

Originally Posted by PimTac
Just checked the futures for tomorrow. It is looking ugly. A lot of time yet before the open but a 5% drop is not out of the question.


The multiple large drops has some momentum for sure.

 

[JOD]

Originally Posted by supton
Then again, I'm mostly in an index fund so I don't think it's dropped too much.


I was 100% in Vanguard's 2030 fund, along with some rental properties (still like having investments I can touch and feel, and generate income each month). The 2030 fund dropped about 8% from its peak, and about 7.5% from when I pulled out. So, not insignificant!

I moved everything to a money market fund in mid-December, in preparation for the crash (pre-corona virus). I'm just scared that the Chinese economy is going to collapse, and there will be fallout world-wide. The whole thing over there seems like a giant shell game, and I spend enough time there to see it first-hand. I was thinking I pulled out way too early, but of course now feel really smart. I'm also smart enough to know that mostly, I was just a bit lucky*


*while I know I was pretty lucky, I think the one lesson I learned was that trying to time the exact apex is a bit of a fool's errand. I mean, it just seemed like after this much unfettered growth, there had to eventually be a serious correction. You never know what's going to trigger a market correction. Gas prices [censored] the housing balloon, which led to the last financial crisis. This time it seems Covid-19 is the catalyst. Hard to predict that.

If I hadn't moved the money then, I have no idea what I'd do. Timing the dip is just as perilous as the trying to time the apex. I think it will likely get a bit worse though before it gets better.

 

[PimTac]

It would not surprise me if we hit the first circuit breaker tomorrow.

Then again I could be wrong. My crystal ball is hazy like most everyone's is.

 

[Mr Nice]

Circuit breaker or.... Plunge Protection Team ?

 

[PimTac]

I'm not sure how Mr Powell runs things. With Helicopter Ben it was easy to guess when the PPT was activated.

Powell might be using the WOPR. They repurposed that bucket of bolts years ago. It seemed like they fired it up earlier today when the losses got pared around midday.

 

[Amkeer]

Once we hit bear market it will be between 14-18 months down. There will be upswings that will be sold into. To see this much selling up front is worrisome. I am not a buy and hold especially as high as the market is as we moved funds into stable accounts. We planned for the downturn in 2008 and this time is no different as far as planning for it. A correction was long overdue but the market tends to like round numbers. My target for moving money back in on a large scale is Dow Jones 15000-18000. It could go lower but I am not interested in timing tops and bottoms just mitigating risk. We will see. No panic selling has happened yet. That tends to happen in the last quarter of the move then we will have huge down days. The market may rally to test current highs, but, with uncertainty it may not.

 

[Amkeer]

As far as halting trades due to drop I think the market is set at about 7% then curbs kick in. It looked like it was going to happen yesterday and the market closed. That would be about 1500-1800 points down before the curb would kick in (circuit breaker). As mentioned those typically happen on the tail end of a selloff which could indicate this move is getting ready for a short term correction. Remember greed and fear rule the market.

 

[Mr Nice]

Just remember someone has the PPT on speed dial.

Gonna be interesting the next few months.