Lost 22% of our IRA/401Ks/Investments

[DarkBlack]

6 months after the rise started....

Buy high, sell low.
That’s my motto

 

[jyoutz]

one thing I never understood was the idea as we get older we should be conservative in our investments. Or have 1 year living expenses in cash. This is to prepare for a future down turn.

I'm 65 and we are 95%+ aggressive. With S&P based funds doubling in value every 7.2 years, all the extra grow we have accrued will easily cover pulling money out during down turns.

It matters if your investments are needed for future income living expenses or another purpose. In my case, my income stream is covered by pensions and SS, and my investments are targeted for future “wants” and family inheritance. I don’t need them to live on. Someone who does need investments for income may have an entirely different investment risk tolerance.

 

[MossRoad]

Buy high, sell low.
That’s my motto

 

[MossRoad]

Wife and I were very fortunate to have like-minded ideas when it came to finances. It paid off.

Quick story.... when we were going to get married, we had to take a marriageability comparison test. It wasn't so much of a test as it was just to see where each of us stood on 6 different subjects...
Religion
Finance
Marriage
Children
Potpourri
And some other subject I no longer remember

Anyhow, it was one of those pencil in the oval deals.
There were well over 100 questions and it took a couple hours. We had to sit in separate rooms and hand them in to the priest when done.

We came back the next week to discuss the results.
He sat us down and said he'd never seen results like this....
We were 95% compatible in three of the subjects, and 95% incompatible in the other three! We laughed. He just shook his head and said something about half of all marriages end in divorce so you stand just as good a chance as anyone else if you work at it. You've been dating for 6 years so you should know what you're getting yourselves in to. Let's have a wedding.

That was about 40 years ago.

 

[California]

It matters if your investments are needed for future income living expenses or another purpose. In my case, my income stream is covered by pensions and SS, and my investments are targeted for future “wants” and family inheritance. I don’t need them to live on. Someone who does need investments for income may have an entirely different investment risk tolerance.

That's the model for us too. Pensions, SS, and now Required Minimum Distributions from IRA's we established many years ago. Net savings balance continues to grow.

 

[Paddy]

My investments are needed for future living expenses, for the next 30 years. But if safe bonds have a return of 4% and double in 18 years, vs. S&P with average 10% returns and 7.2 years to double, you are leaving a lot on the table.

The crash in 2000 did take a long time to recover......

 

[CloverKnollFarms]

Who you marry has a very big impact on your financial success. Also, studies show marriages survive infidelity more commonly than they do financial issues.

Not having a grasp on finances is really detrimental. I also think that realizing I am not my provider, is equally important.

 

[jmc]

The dot com bubble burst was 25 years ago.
The 2021 market drop was the from the plandemic.

Yep, typo. 2001.

 

[ultrarunner]

There is retiring into a bad market, and not actually saving. Most of America never really saved.

I've driven three different vehicles since 2006. Not one cost more than $9000.

That's a year of depreciation on most new vehicles.

My early retirement could be attributed in large part to that choice alone.

Drove my $800 Plymouth from senior high school until I was 40… one timing chain which was under $50 back then.

I grew up around the car business and it might surprise just how many cars are sold payments out 60 to 84 months…

 

[CloverKnollFarms]

Drive my $800 Plymouth from senior high school until I was 40… one timing chain which was under $50 back then.

I grew up around the car business and it might surprise just how many cars are sold payments out 60 to 84 months…

I personally know a guy worth well over $2M with no debt, who drives a $4000 car.

You’d never look at him and think, “wow, he must be wealthy”.

Meanwhile people with sub $100k net worth, drive $50k vehicles to look wealthy.