Has the roaring stock market really helped the average Joe?

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Most pension plans are invested in the market....so even if you don't own stocks individually...you still may be benefitting from the market.
 
I did well in the past decade and mostly pulled out. Will put back in when there's blood in the streets.
 
At the very least folks need to get into their employers 401K and take advantage of any match available. Diversify your holdings and hope for steady if not spectacular growth. Once you go to retire then seek out some financial advice on how to draw from your account(s) and any pension(s) +SS. For most the age of 65 and the medicare that comes with it is the time to think about retiring unless you have other medical available or are indeed 7 figure wealthy before 65. 5 more years for me minimum unless my company offers some sort of early out incentives, (coal fired power plant scheduled to shutter in 2027).
 
Originally Posted by bullwinkle
I've done fairly well on my 401K, but I just haven't had enough confidence in the market's long term strength to put everything in it. Sad thing is, too many (if not most) working people spend everything they make (or more), and just don't have the financial discipline to NOT buy that new car on credit, or pay off those CC bills every month. I thank the Man upstairs that I've stayed mostly healthy (turned 55 this year), and have managed to scrounge together quite a bit. No danger of this moose retiring anytime soon, though, one major illness for me or Mrs. Bullwinkle, that cash would disappear pretty quickly.


Only reason I don't get out is that it's very hard to time the market. You might be able to get out in time, but then you don't get back in on time. There's only a few days where most of the gains in the stock market are made, other times it's just sideways. So I always figured to stay fully invested. I remember someone telling me that they got out 2 years ago because they felt it was too high. I just remember back to 1996 when they said the market was overvalued. They kept saying that for another 4 years when it finally tanked. But when it tanked, it didn't drop back to 1996 levels.

Maybe it's just as well that there aren't more people investing. I think there was an old saying that when the shoe shine boys back in 1920's were giving stock market tips, that's when people knew it was time to get out.
 
I had to wait about 3 months for most of my stocks to come back up. I'm back in the money again. It goes up and down. The thing is you never know when it's going to start heading back down for 2 months straight, so it worries me a bit when things are high like right now. At one point they were all down about 7 percent
 
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I believe in index funds, I figure...we're all going to make money or we're all going to go broke. Historically the indexes are tough to beat, so why pay someone to try...then fail? The average guy is capable of indexing without much help. I'd also consider vanguard Wellington.

It's going to go up, it's going to go down...but invest...dollar cost average every month and the average guy will do more than fine.
 
Originally Posted by Wolf359

Only reason I don't get out is that it's very hard to time the market.

It is impossible to time the market.
There are incredible algorithmic models run on supercomputers that attempt to do so.

One thing to keep in mind is, if you are ahead, take some $$ off the table.
This is a hedge against the inevitable downturn; depending on your situation you may not be able to wait out that downturn.
But for now, enjoy the ride.
I've swapped money into CA municipal bond funds; a safe, tax free income stream.

Someone mentioned an income advisor at a certain point.
I tell people to do that now; do not wait.

What kills me is people who say they will save when they are older.
Time may not be on your side.
It is a whole lot better to be able to give a little than to be the one who needs a little.
I have been on both sides.
 
A word of advice. Don't be greedy. Come up with an amount that your with gaining and selling it. Don't sit on it for a month hoping it's going to go higher. I just sold a $13,000 dollar stock today for a mere $200.00 gain. Only held it for a few days. 200 bucks is 200 bucks. Lol usually I wait for the stock to go up more than 1.5 percent though. I'm sure my accountant is going to be mad come tax time when I give her a bunch of 1099s.
 
Originally Posted by JeffKeryk
Originally Posted by Wolf359

Only reason I don't get out is that it's very hard to time the market.

It is impossible to time the market.
There are incredible algorithmic models run on supercomputers that attempt to do so.

One thing to keep in mind is, if you are ahead, take some $$ off the table.
This is a hedge against the inevitable downturn; depending on your situation you may not be able to wait out that downturn.
But for now, enjoy the ride.
I've swapped money into CA municipal bond funds; a safe, tax free income stream.

Someone mentioned an income advisor at a certain point.
I tell people to do that now; do not wait.

What kills me is people who say they will save when they are older.
Time may not be on your side.
It is a whole lot better to be able to give a little than to be the one who needs a little.
I have been on both sides.


Right which is why I stay fully invested.

As for taking money off the table, why do you think I'm driving two Mercedes? Took some money off the table a while ago. It's still going up...
 
Originally Posted by Astro14
Originally Posted by ZZman
Originally Posted by Alfred_B
Yes if they are in the game.

But the majority really aren't in the game. The top 10% own 85% or so of all stocks.


Then you already have your answer.

Why even start the thread?

Trolling again?


Because others have different opinions!
 
Originally Posted by Railrust
I believe in index funds, I figure...we're all going to make money or we're all going to go broke. Historically the indexes are tough to beat, so why pay someone to try...then fail?

Great advice. Over time, the S&P 500 outperforms 80% od the market.
 
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Originally Posted by ZZman
Originally Posted by Astro14
Originally Posted by ZZman
Originally Posted by Alfred_B
Yes if they are in the game.

But the majority really aren't in the game. The top 10% own 85% or so of all stocks.


Then you already have your answer.

Why even start the thread?

Trolling again?


Because others have different opinions!


Including me.

Anyone, and I mean anyone, of any income level can participate in the "game" if they are willing to save and have the discipline to stick it out for the long run.

For decades.

The key ingredients are time and discipline.

Most people are financially ignorant, and don't realize that they have the ability. 401(k). 403(b), 459, IRA, Roth IRA. So many options are offered. So few utilize them.

And the rest lack discipline.

There are many members of this board, who exercised discipline over decades, and have been well rewarded, despite relatively modest income.
 
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Originally Posted by ZZman
Probably helps to have inside info too....:)


Never had any, personally.

It's genuinely not needed.

But telling yourself that sure makes you feel better if you've failed to plan for the future.
 
Originally Posted by ZZman
The market has gone been bullish for a long time. It is hitting highs. Many are making lots of money.

But does it really help the average guy/gal or does the gap between the top, middle and bottom grow even larger?


Strong market performance has helped everyone invested in it.
In terms of income, it isn't so much a matter of what you make as what you keep.
I see a number of people well past retirement age working low wage retail these days.
Some may just want to stay active but many are there because they failed to plan back in the eighties and nineties.
Save your pennies and put them in something that'll grow over time.
You will see the occasional crash, but if you don't panic and simply ride it out you'll get well over time.
 
I'm always buying in ups and downs. IRA's in mutual funds are are doing well. My stock portfolio is performing well also. Buy good companies and hold them. When they dip buy more.

Putting more in cash while at all time highs and I'm always looking for opportunities.
 
Originally Posted by Wolf359

As for taking money off the table, why do you think I'm driving two Mercedes? Took some money off the table a while ago. It's still going up...

Congrats on your 2 Mercedes; beautiful cars.
I guess when I said take $$ off the table, I meant to take some value out of equity and diversify into less risk.
Cars are depreciating assets; I was referring to investment strategy.
Certainly nothing wrong with using and enjoying your excellent gains.

There are some CA municipal bond funds that have returned more than 5% in the last year; this is both Federal and CA tax free and safe.
$500K @ 5% is $25,000 tax free and never touch the principal.
While I like paying income taxes because that means I am making money, enough is enough.

Just 1 strategy.
Full disclosure, I am waaaaay overweight in equity.
 
It has helped me, average middle class Joe, big time, but I won't feel it until I retire. I'm in the long game and I've put about 10% of my paycheck into it. It has grown substantially over the years, even with the big 2007 drop in the middle of it. It has taken off since 2016 and things are looking very good.

It doesn't help average Joe if he's not investing. So that would be average Joe's fault if that is the case, not anyone else's.

I've played a pretty conservative strategy with investment funds that spread it out. No rocket science behind it. Now if we could just change Social Security and let us make the investments, I'd be very rich when I retire. It is a big sham that they don't change the law so we can do that. It has done wonders for Chile. People ripped GW Bush to pieces when he floated a proposal just to allow some of it to be privately invested. I think one particular party's leaders are against anything that could possibly get people to be less dependent on them. It sure seems that way, anyway. I can't think of one single pro growth policy they support. (They do try to sell horribly bankrupting ideas as being pro growth, but they are not.)

They all think they are Robin Hood, but I don't remember Robin Hood putting any of it in his own pocket like they do.
 
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Originally Posted by JeffKeryk
Originally Posted by Wolf359

As for taking money off the table, why do you think I'm driving two Mercedes? Took some money off the table a while ago. It's still going up...

Congrats on your 2 Mercedes; beautiful cars.
I guess when I said take $$ off the table, I meant to take some value out of equity and diversify into less risk.
Cars are depreciating assets; I was referring to investment strategy.
Certainly nothing wrong with using and enjoying your excellent gains.

There are some CA municipal bond funds that have returned more than 5% in the last year; this is both Federal and CA tax free and safe.
$500K @ 5% is $25,000 tax free and never touch the principal.
While I like paying income taxes because that means I am making money, enough is enough.

Just 1 strategy.
Full disclosure, I am waaaaay overweight in equity.


I used to have bonds, but bonds have been dogs for years. I finally gave up listening to the experts and got rid of bonds years ago.

I'm also diversified in real estate. Been a landlord for years now.

Basically my core holdings are in equities with the majority of it in the S&P 500. Also a few other mutual funds that sometimes beat the S&P 500 but they stay close most of the time. They sorta track the Nasdaq more and sometimes that tends to do better than the S&P.
 
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