Lost 22% of our IRA/401Ks/Investments

[jyoutz]

Crash resistant means things like bond funds that return at a lower rate than most stock funds, but don't drop significantly either. Some specific stock funds tend to run counter (precious metals, for example). Combined with dividend producing stocks, they moderate the effects of market movements. That's why the gross is only about 10% before inflation.

In an aggressive portfolio, I've regularly made 30-45%, but interspersed with some periods of losses. Even with downturns, the market has been very resilient. People tend to lose when they panic and pull money out rather than let it recover...or they foolishly invest in individual stocks that are much more volatile than a fund.

My portfolio ETFs have a 10% downside buffer. And lots of dividend yielding stocks. A conservative approach for sure, but still growing above bonds and other lower risk options.

 

[CloverKnollFarms]

Dividends are awesome. Cash just shows up!

 

[CloverKnollFarms]

My wife just got accepted into a surgical tech program...

Glad we have 529 money leftover

That was another good investment

 

[Oaktree]

When does one buy back in?

Good question, and no easy one size fits all answer. Best option is to have held steady when things went south.

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.

Agree, and that's been my lifestyle as well, living well below my means. For sure there are people who are just getting by and don't have anything leftover to save, but it's easy to slip into lifestyle creep. No one needs a new car every 3-4 years, a 65+" tv (with multiple streaming services), eat out multiple times a week or have $1000 I-phones for every member of the family but people do it because "everyone else is doing it". It's OK if you have money leftover at the end of the week!

 

[DarkBlack]

*I was reminded of that just before the 2021
dot com bubble burst-

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

 

[DarkBlack]

Dividends are awesome. Cash just shows up!

Kinda, kinda not, since the stock price drops the amount of the dividend, so you really don’t gain, but it certainly looks good seeing it deposited in your account. I agree.
Qualified, not ordinary dividends , can be nice for a taxable account, if you’re in a lower income bracket.

If you compare the largest popular high % paying dividend stocks to the largest popular stocks in say, the Nasdaq, that pay either no, or little dividends, you’ll see in the majority of cases, the high paying dividend stocks actually make you less money over time compared to the low/non dividend stocks

 

[CloverKnollFarms]

Good question, and no easy one size fits all answer. Best option is to have held steady when things went south.

Agree, and that's been my lifestyle as well, living well below my means. For sure there are people who are just getting by and don't have anything leftover to save, but it's easy to slip into lifestyle creep. No one needs a new car every 3-4 years, a 65+" tv (with multiple streaming services), eat out multiple times a week or have $1000 I-phones for every member of the family but people do it because "everyone else is doing it". It's OK if you have money leftover at the end of the week!

We share the same thoughts

 

[Paddy]

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.

 

[MossRoad]

When does one buy back in?

6 months after the rise started....

 

[California]

No one needs a new car every 3-4 years, a 65+" tv (with multiple streaming services), eat out multiple times a week or have $1000 I-phones for every member of the family

Amen bro!

Our primary car is the 2005 Focus Wagon we paid cash for new. Second car is the 1999 Subaru Outback, same. Neither has given us any reason to replace it.

Recent car photos at twenty and twenty five years old respectively. I want a new EV but can't justify dumping these. Each runs, and looks, same as it did the first day. California cars don't rust! Neither has ever been parked under cover. We need economy cars because we make the 200 mile round trip between home and ranch dozens of times per year.

What we've saved on cars (and fuel), is still growing in a S&P500 fund. Likely for the kids to inherit if we don't have extreme end of life costs.

Incidentally those photos represent Ranch (hobby farm, orchard) and Home. Life is good.