Better money strategies to consider

[mathjak107]

those that don’t have money for eating in decades out are in a real pickle .

that means they will be broke. and need alternative means of support so obviously not a typical retiree living off whatever their savings can generate plus ss.

most of us need whatever we have to support us until death as small as that amount may be .

the less you have the more important making efficient use of your money becomes and that means appropriate investing for that particular time frame .

a 50/50 portfolio has never ever lost money over any 10 or 20 year period. that is since 1871 when they started tracking

 

[OneEyedDiva]

if you lost money it was your own poor behavior not markets .

markets went on to higher and higher gains over the years

WOW MJ!! Not nice!

 

[mathjak107]

WOW MJ!! Not nice!

fact though despite that no one wants to hear it was their own behavior and not markets that caused their losses

vanguard and morningstar studies show most small investors lag the investments and funds they were in by quite a bit , simply because of their own poor behavior .

they either think they are going to beat mr market at his own game by timing in or out .

or they react to short term events and bail out and lose money .

yeah , the truth can hurt , but that does not change the facts

 

[Nathan]

fact though despite that no one wants to hear it was their own behavior and not markets that caused their losses

vanguard and morningstar studies show most small investors lag the investments and funds they were in by quite a bit , simply because of their own poor behavior .

they either think they are going to beat mr market at his own game by timing in or out .

or they react to short term events and bail out and lose money .

yeah , the truth can hurt , but that does not change the facts

You obviously have not grasped the scenario as described in the OP, but instead assign blame to the customer for the failure of the agent to carry out their fiduciary responsibility. Typical apologist response.

 

[mathjak107]

ultimately it’s on you to understand what’s going on .

people spend more time researching a car or refrigerator than they put in to learning at least the basics of what something as important as their money is doing .

then it’s everyone else’s fault if they aren’t happy with the results

if the firm actually broke s fiduciary responsibility then sue them . if you are correct then they did bad .

if not it’s on you

 

[OneEyedDiva]

fact though despite that no one wants to hear it was their own behavior and not markets that caused their losses

vanguard and morningstar studies show most small investors lag the investments and funds they were in by quite a bit , simply because of their own poor behavior .

they either think they are going to beat mr market at his own game by timing in or out .

or they react to short term events and bail out and lose money .

yeah , the truth can hurt , but that does not change the facts

First of all, you jumped to an erroneous conclusion that my friend Nathan's poor judgement/decisions led to an unfavorable financial circumstance, which wasn't the case. Had you read the OP thoroughly, perhaps you would have realized that.

Secondly, even if he was "guilty" of poor money management/judgement, the way you responded was both unnecessary and unkind. You sometimes get on your "I'm more knowledgeable about investing and finances than you" high horse MJ ! Everybody is not as financially savvy as you, Doesn't mean they should be maligned for unfortunate choices and/or outcomes (for which they're likely already feeling bad about). Now that's natural facts!

 

[Muskrat]

Actually…I am a terrible investor in the stock market. But I do understand how investments work. MJ is giving advice we should all heed. Before you place any funds with a fiduciary you should understand the basics of how the different investment vehicles work. And if you understand THAT ypu may choose to do it yourself. I chase the quick buck. My poor choices led to a catastrophic loss several weeks ago…taking half my invested monies. TOTALLY my own fault. Am I ok? Yes. Why? Because I do not risk money that I can not survive loss of. So I will lick my wounds…then follow the tried and true…and not gamble…for awhile.

 

[OneEyedDiva]

Actually…I am a terrible investor in the stock market. But I do understand how investments work. MJ is giving advice we should all heed. Before you place any funds with a fiduciary you should understand the basics of how the different investment vehicles work. And if you understand THAT ypu may choose to do it yourself. I chase the quick buck. My poor choices led to a catastrophic loss several weeks ago…taking half my invested monies. TOTALLY my own fault. Am I ok? Yes. Why? Because I do not risk money that I can not survive loss of. So I will lick my wounds…then follow the tried and true…and not gamble…for awhile.

And at least you acknowledge your mistake(s). While you're licking your wounds, you certainly don't need anyone pouring salt on them! I agree that @mathjak107 has given sage advice on many occasions. But everybody has to find his/her own investment style and path. The best case scenario after making a mistake is that one will have learned from it.

I'm a self taught investor who's done well with investments I chose. Not so much with following so called experts' picks. I made a lot of mistakes over the years, but everything turned out alright for me. I hope they will for you too in the long run.

 

[Knight]

Similar to OneEyedDiva I'm self taught & accept that making mistakes is part of learning. Not being greedy & taking a cautious approach has been our strategy. And it is working for us. We are taking advantage of the high interest CD rates & a mutual fund that was delivering reasonable interest. Next year we'll have to evaluate what to do with the CD & mutual fund since both will exceed the FDIC insured limit. I'm thinking it's time to seek advice from Fidelity's free investor agent/advisor assigned to our accounts.

 

[dilettante]

There is a lot to consider, and I'm not sure many with RMDs ahead on tax-deferred accounts even know what impact these will have on income taxes and Medicare IRMAA. They may be sitting on deferred accounts, thinking that they're covered.

There are many moving parts. You might have pension income and be delaying taking SS until 70. Let that day come and you can be back to a lot of taxation and an IRMAA hit again.

All of that comes before you think about directly-taxed exposure to the markets, a separate kettle of fish.

@Knight is right that you want to keep an eye on FDIC/NCUA limits as well just in case. Interest rates had approached normal for a couple of years, luring more cash into high-interest savings, CDs, and money-market accounts.

 

[Aunt Bea]

Similar to OneEyedDiva I'm self taught & accept that making mistakes is part of learning. Not being greedy & taking a cautious approach has been our strategy. And it is working for us. We are taking advantage of the high interest CD rates & a mutual fund that was delivering reasonable interest. Next year we'll have to evaluate what to do with the CD & mutual fund since both will exceed the FDIC insured limit. I'm thinking it's time to seek advice from Fidelity's free investor agent/advisor assigned to our accounts.

Check with your bank about adding a POD beneficiary to expand your FDIC coverage.

“As of April 1, 2024, the FDIC's insurance limit for payable-on-death (POD) accounts is $250,000 per eligible beneficiary, up to a maximum of $1,250,000 per owner:”

 

[Knight]

Check with your bank about adding a POD beneficiary to expand your FDIC coverage.

“As of April 1, 2024, the FDIC's insurance limit for payable-on-death (POD) accounts is $250,000 per eligible beneficiary, up to a maximum of $1,250,000 per owner:”

Thanks for that tip Aunt Bea. I'll be sure to ask about that when we set an appointment with our Fidelity advisor.

 

[OneEyedDiva]

Check with your bank about adding a POD beneficiary to expand your FDIC coverage.

“As of April 1, 2024, the FDIC's insurance limit for payable-on-death (POD) accounts is $250,000 per eligible beneficiary, up to a maximum of $1,250,000 per owner:”

Interesting! I didn't know that.

 

[bobcat]

Check with your bank about adding a POD beneficiary to expand your FDIC coverage.

“As of April 1, 2024, the FDIC's insurance limit for payable-on-death (POD) accounts is $250,000 per eligible beneficiary, up to a maximum of $1,250,000 per owner:”

I think that might be just for Trust accounts. If you have a source for that information, could you give the link?

 

[Aunt Bea]

I think that might be just for Trust accounts. If you have a source for that information, could you give the link?

Deposit Insurance At A Glance | FDIC.gov

Informal Revocable Trusts – often called payable on death (POD), Totten trust, in trust for (ITF), or as trustee for (ATF) accounts – are created when the account owner signs a deposit account agreement, directing the bank to transfer the funds in the account to one or more named beneficiaries upon the owner’s death.

 

[bobcat]

Deposit Insurance At A Glance | FDIC.gov

Informal Revocable Trusts – often called payable on death (POD), Totten trust, in trust for (ITF), or as trustee for (ATF) accounts – are created when the account owner signs a deposit account agreement, directing the bank to transfer the funds in the account to one or more named beneficiaries upon the owner’s death.

Thanks. Apparently they are trusts, but just informal ones, and you're right that adding another beneficiary would allow for increasing the limit.

 

[Aunt Bea]

Thanks. Apparently they are trusts, but just informal ones, and you're right that adding another beneficiary would allow for increasing the limit.

The simplest option for most people is to open accounts in different banks and spread the risk.

I’m not sure but I don’t believe that anyone has ever lost money in an FDIC insured institution.

Usually the FDIC finds a healthy bank to step in and quickly takeover.

 

[CooCooforCoCoPuffs]

"I plan to die and let my last check bounce". Unknown author.

 

[CooCooforCoCoPuffs]

There are many times I find myself wishing I knew the year I will die, so I know if and when I can spend money sitting there. I have sort of a plan that if I get some disease, like pancreatic cancer, dementia I will just go to WA state or Europe for the euthanasia thing.

I really just can't wrap my head around the thought that God would ever intended for us to suffer through our "golden" years, hours, days and months, parked in a nursing home spending gobs of resources, being humiliated by no one coming to visit us or caring enough to visit.

I'd rather leave my money to someone who can use it, than the health care system. Well, except maybe cancer research, MS research, Alzheimers research...or research to find a new planet to migrate to.

 

[Aunt Bea]

There are many times I find myself wishing I knew the year I will die, so I know if and when I can spend money sitting there. I have sort of a plan that if I get some disease, like pancreatic cancer, dementia I will just go to WA state or Europe for the euthanasia thing.

I really just can't wrap my head around the thought that God would ever intended for us to suffer through our "golden" years, hours, days and months, parked in a nursing home spending gobs of resources, being humiliated by no one coming to visit us or caring enough to visit.

I'd rather leave my money to someone who can use it, than the health care system. Well, except maybe cancer research, MS research, Alzheimers research...or research to find a new planet to migrate to.

I doubt that God planned on us spending time in nursing homes, on operating tables, etc…

I believe that God probably intended us to live until we die.

Sadly, all of this other stuff is our own doing.

 

[CooCooforCoCoPuffs]

On the other hand, my DH worries he will be put on life support and I will tell the docs to unplug him. LOL. I told him not to worry, that once his life insurance becomes too expensive, on his 70th birthday, he is worth more to me alive than dead.

We have SUCH a romantic relationship! LOLOL We often wake up and look at each other and say: "You still here?". LOL
Dark humor.

 

[mathjak107]

Actually…I am a terrible investor in the stock market. But I do understand how investments work. MJ is giving advice we should all heed. Before you place any funds with a fiduciary you should understand the basics of how the different investment vehicles work. And if you understand THAT ypu may choose to do it yourself. I chase the quick buck. My poor choices led to a catastrophic loss several weeks ago…taking half my invested monies. TOTALLY my own fault. Am I ok? Yes. Why? Because I do not risk money that I can not survive loss of. So I will lick my wounds…then follow the tried and true…and not gamble…for awhile.

exactly the case.

we are all ultimately responsible for our own money and blindly putting someone else in charge of it with poor results and not paying attention to those results or your own goals , needs and the level of risk being maintained ultimately falls on the account owner

 

[GoodEnuff]

I was an investment broker from the mid 1980's to early 1990's. I know the lies they tell. I do not invest in any stocks in any form. Have I lost out on the latest market upside? Yes. Do I care? No. Do I need to be rich? No. I have what I need and a bit more. A simple life is a peaceful life.

 

[GoodEnuff]

There are many times I find myself wishing I knew the year I will die, so I know if and when I can spend money sitting there.

^^^This!

If I am ever diagnosed with a terminal disease, I want to know how much time I have left because I have some money I intend to spend before I die. Not leaving it to anybody!

 

[mathjak107]

I was an investment broker from the mid 1980's to early 1990's. I know the lies they tell. I do not invest in any stocks in any form. Have I lost out on the latest market upside? Yes. Do I care? No. Do I need to be rich? No. I have what I need and a bit more. A simple life is a peaceful life.

good for you .

but us little people need investing in equities to take the little bits and pieces we managed to save and grow it in to meaningful wealth .

i have been investing since 1987 and markets have taken my plain ole fidelity funds and grew it in to more than i ever imagined