Investment account back up!

[California]

re helping manage a relative's money, the smartest thing I ever did was get Dad's variety of investments moved into a single Fidelity master account. He had a whole bookcase of original stock certificates, dividend-reinvestment statements, elections of corporate directors, more. He paniced when he noticed he was no longer getting statements from the spun-off PacTel cellphone division. (Because that entity had been sold to Vodaphone). At age 85 he asked for my help to resolve this. I knew I would eventually be executor so I talked him into taking all his paperwork to Fidelity to figure out. This put everything on a single monthly summary statement. A few years later, settling the financial part of his estate was simple.

 

[California]

As for Investment Account Back Up:

We live fairly simply on SS and pensions - which include lifetime medical plan. No debt. So the IRA's and taxable investments we put away years ago for retirement aren't critical. We've mostly left the accounts alone, with now sharing much of the RMD's with our kids who are raising their own kids.

But it has been 'interesting' to watch portfolio value zig-zag $100k below, then $100k above, the recent average. I just looked at S&P which our returns approximately track: Up 3% over 2 years, up 25% year to date, up 67% over 5 years. Looks like there will be something left for the kids, eventually. It would have made me crazy to try and time the recent market. Just staying the course has worked out better and with no stress.

As I've noted in other posts, 85% of retail investors don't do as well as the S&P. So S&P mutual funds are where most of our retirement savings have been invested.

 

[RSKY]

A lot of good information here. One thing I'd like to add is this:

For those, including myself, who are living on investments with no other source of income, there is a principal "threshold" to consider.

When there is a dip in the market, as in 2008, there is a minimum level of principal required to allow for a successful portfolio recovery. During the dip, or recession, you still need living expenses, which can further erode that principal.
This threshold is difficult to determine and follows in the footsteps of that age old question, "How much do I need in retirement?" Sometimes adjustments to withdrawals or investment direction is necessary and requires sound advice from a qualified investment councilor.

If your investments are what you live on then your attitude and strategy towards the market will be different than mine. I look upon mine as generational wealth to be passed on and as a source for big item purchases like autos. Other than that we keep enough in checking to handle day to day with a month or so's reserve. Not that we are wealthy or anything, just that we worked hard and saved all our lives to be in this position. We never partied, didn't trade vehicles every other year, and seldom splurged on expensive items. So now we sit back and enjoy life while some of our contemporaries who partied all the time and bought expensive junk are still working at age 70.

RSKY

 

[ultrarunner]

If your investments are what you live on then your attitude and strategy towards the market will be different than mine. I look upon mine as generational wealth to be passed on and as a source for big item purchases like autos. Other than that we keep enough in checking to handle day to day with a month or so's reserve. Not that we are wealthy or anything, just that we worked hard and saved all our lives to be in this position. We never partied, didn't trade vehicles every other year, and seldom splurged on expensive items. So now we sit back and enjoy life while some of our contemporaries who partied all the time and both expensive junk are still working at age 70.

RSKY

Some keep working well beyond out of a sense of duty…

My step grandfather was the first every morning and last to leave his Tool and Die shop well into his 80’s.

He said I have men with families that depend on me.

He emigrated to the United States in the 1920’s as a master Tool Maker.

He never accepted social security saying America provided opportunities beyond his wildest dreams…

It’s all gone now but an interesting prospective that seems to be disappearing.

 

[MoKelly]

Some keep working well beyond out of a sense of duty…

My step grandfather was the first every morning and last to leave his Tool and Die shop well into his 80’s.

He said I have men with families that depend on me.

He emigrated to the United States in the 1920’s as a master Tool Maker.

He never accepted social security saying America provided opportunities beyond his wildest dreams…

It’s all gone now but an interesting prospective that seems to be disappearing.

Interesting.

By never accepting social security does that mean he never applied?

Just think how the USA would be doing today if everyone had the work ethic of your grandfather!

 

[CloverKnollFarms]

Well, SS is my money, so yah... I'm going to get a bit of it back. The value of what I paid in, would be worth more than $1m at age 62... Accounting for no growth after that... I still wont see those dollars in my lifetime.

Especially since the average life expectancy in the US has dropped by 3 full years, in just three years. Odd eh? . Insurance companies have some startling facts about our longevity right now.

 

[Torvy]

That money would be worth so much more if the government simply required you to put the same % in a 401k type system...but then they couldn't use it for control.

SS is unsustainable, especially since populations are declining.

 

[California]

SS runs on the model of the present working generation, provides the funds for the entitlements of the presently retired.

 

[MoKelly]

Well, SS is my money, so yah... I'm going to get a bit of it back. The value of what I paid in, would be worth more than $1m at age 62... Accounting for no growth after that... I still wont see those dollars in my lifetime.

Especially since the average life expectancy in the US has dropped by 3 full years, in just three years. Odd eh? . Insurance companies have some startling facts about our longevity right now.

The gross value of what I paid plus what my employer matched is close to $3 million.

My benefit is roughly $40000/year.

As someone said, if those monies were placed in a ROTH the value at retirement would be amazing!!!

Don’t get me started on the 1.5% Medicare tax.

 

[CloverKnollFarms]

It's not an entitlement. It's the shittiest retirement account you could pay into bar none. When I pay I into it, more than I'll see, it's robbery. Especially considering it's a slush fund for govt spending.