Are You Worried About the Stock Market?

You do not lose money in the ways you mentioned, you just don't earn as much. Inflation is one of the things the money men always mention, a scare tactic. If you are worried about inflation, keep saving after you retire.

Quick silver can you take your money out of the annuity?

When my husband retired the money men seemed to be coming out of the wood work. I was very annoyed that his company would sell our names that way. We let one come to our home to see what they had to offer. They gave us options, then looked at my husband suggested an annuity that would give me an income if he died. I don't trust people who want our money. I asked him if we could get the money out of the annuity if we needed a kidney transplant or other emergency. He said no. That was the end our discussion with them. More called and they would not speak with me of course, so I had my husband come to the phone every time. He got tired of that and told the last one, you speak to my wife or no one, she is the secretary and treasurer. LOL
 

You are wrong about inflation Vala. If your CD pays 1% and inflation rises 2% you are losing money.

If you buy a hamburger for a dollar this year and your dollar earns a penny but the cost of the hamburger goes up to $1.02 you have lost money.
 
I think you know what I mean, you do not lose money with your in Cds/bank.
 

Quick silver can you take your money out of the annuity?
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I get a nice check every quarter

I have no intention of touching the principle... It's an income source. I would be concerned if that was the only money I had.. that is just a portion of my portfolio. I have traditional IRA's and a pretty nice ROTH..
 
rkunsaw said:
I have my investments spread between 5 different kinds of mutual funds. Bank savings accounts, CDs, and money market accounts are a sure way to lose money. None of them keep up with inflation.
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Agree. Spread your money around to level out the risk and to hopefully stay ahead of inflation. I do have cd's and money market accts for stability, but I also have an allocation to equities and real estate. Sure I have days when my investments are lower but I don't look at it as 'lost' money. I just ride it out. Not easy for some to do though.
 
Bullie76 said:
Agree. Spread your money around to level out the risk and to hopefully stay ahead of inflation. I do have cd's and money market accts for stability, but I also have an allocation to equities and real estate. Sure I have days when my investments are lower but I don't look at it as 'lost' money. I just ride it out. Not easy for some to do though.
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Someone said that having money in the Market is like walking up a flight of stairs while playing with a Yo-yo. You have daily ups and downs, but in the long run, you are going UP... The market has always outperformed CD's.. and as you have stated, when you are in a Mutual Fund... you are buying shares in that fund which have already spread out the risk. You never lose the number of shares you own.. it's their value that fluctuates. If you continued buying shares when the market tanked down to $6000, you now have those shares worth much more now that the market is almost at $18000. People that pulled their money out in 2009 should be kicking themselves in their arses..
 
Vala said:
I am not worried because my money is in a savings account. I never invested in anything except CDs and have never lost a dime. When my husband retired we got his pension, soc sec and eventually my soc sec. We did not need anymore money and I do not mean we were rich, just not in need. We even cancelled his life insurance policy's. My sister lost $50, 000. in the market, my friend lost the same amount. Another friend was afraid to take her money out of the market because of paying all of those taxes. She even had to beg for her money to buy a new car. I gave her a pep talk and told her to tell the man it was her money and she wanted it. In fact she told him "you are not my husband and you can't tell me no, I want some money." Love that one.
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actually since 2014 a dollar lost 8% so yeah you did loose money in the form of purchasing power as cd rates did not keep up , there is no difference losing 8% in purchasing power or losing 8% in a speculation ... on the other hand 1 dollar in the s&p 500 in 2014 when this was written is now up almost 8% a year not cumulative but yearly.



 
The debt load of the United States is unsupportable and what goes up will come down it’s only a matter of time. We have to pay off the debt as quickly as we can or suffer the consequences.
 
mathjak107 said:
actually since 2014 a dollar lost 8% so yeah you did loose money in the form of purchasing power as cd rates did not keep up , there is no difference losing 8% in purchasing power or losing 8% in a speculation ... on the other hand 1 dollar in the s&p 500 in 2014 when this was written is now up almost 8% a year not cumulative but yearly.



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Seems like the OP hasn't shown up here since 2014 Mathjak.
 
Hi, new here. Just wanted to note that I don't think it is necessarily clear that our debt levels are unsupportable. Just look at Japanese debt to their GDP, which is a significant multiple above the US debt to GDP level. Another proxy is that despite all of the debt that the US has outstanding, there is a worrying lack of inflation. At some point debt levels become unsustainable, but it seems like objective information suggests the US is pretty far away from those levels.
 
Vala said:
I think you know what I mean, you do not lose money with your in Cds/bank.
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Getting 2% on a cd in a 3 or 4% inflation world is a negative real return as it is called . These are the returns that matter ....the nominal returns which are not inflation adjusted mean little. It is your real return that counts and if it is negative it is a loss
 
Aunt Bea said:
The numbers pretty much answer the OP's question.

On October 15, 2014, the Dow closed at $16,141.70 and last Friday the Dow closed at $26,403.28.
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remember though , the dow and s&p numbers do not include dividends paid out so the gain is actually much higher once you add them back in .

from october 2014 to now the s&p 500 is up 61%
 

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