Investment income on the decline again

C50 said:
There are dozens upon dozens of financial analyst out there explaining why the market reacts as it does. There are certainly indicators that from a historical perspective can indicate possible fluctuations.

You know what I think? So much of market fluctuation is based fear reaction. It seems all it takes is a news source to report on a little hiccup that may resort in a financial dip and then it becomes a run away train, by the next day we're in a crisis.

I think we should ban all news sources from speculating on economic issues. I'm only half joking.
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I don't disagree with you. My father was a financial advisor and in the "old days" it seemed that a company's financial strength dictated what their stock was worth. Now, it seems that if anyone sneezes the market goes up or down. With that said, Wall Street has never reacted positively based on fear or uncertainty. But it has provided over 10% growth over many years.

I just know that I am invested for the long haul. 2021 was a great year. 2022 is taking all those gains out of my portfolio. I'm hoping 2023 is better, but we shall see.
 

garyt1957 said:
I'd be dancing in the street if I had only lost $10k in that time frame.
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Liberty said:
Depends on how much money you have invested in what funds or bonds.
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I wonder, does it hurt more to lose $10,000.00 on a $100,000.00 portfolio than it does to lose $1,000,000.00 on a $10,000,000.00 portfolio? :unsure:
 

C50 said:
While it's discouraging to see your investments decrease from their peaks it's not truly a loss unless you cash out, or it dips below your actual investment.
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Funny how few 'get it'! When the market is down, don't sell or you will take the losses you fear! Since in America, our markets have always recovered and then grown beyond where they started. Your best tactic is to wait them out...!
 
Aunt Bea said:
I wonder, does it hurt more to lose $10,000.00 on a $100,000.00 portfolio than it does to lose $1,000,000.00 on a $10,000,000.00 portfolio? :unsure:
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It's not so much the amount, it is how bad you need the money. IF your entire life savings is $100K, you might be looking at some tough times ahead. If you have $10M, you may have to sell off one of the vacation homes.
 
It seems I may have just taken a 200k hit. A highly rated bond investment in high end retirement housing suggested by our advisor has filed for bankruptcy. 50k of that was invested for my nephew, whose trust I control. I'm not legally responsible for that loss, but morally I feel I need to make that up. This has been paying interest for several years and then quit for several months during covid, and restarted 6-7 months ago, and then stopped paying out again. I think I'm done with financial advisors. Fortunately I have other resources, but not an easy pill to swallow, and still finding out if I have any recourse.
 
Timewise 60+ said:
Funny how few 'get it'! When the market is down, don't sell or you will take the losses you fear! Since in America, our markets have always recovered and then grown beyond where they started. Your best tactic is to wait them out...!
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I do think some people depend on the growth to meet retirement needs, instead of diversifying some money into fixed earnings or simple cash accounts. They pull $1000 out a month and the account maintains a steady balance, then the market swings bad and suddenly that $1000 a month starts dinging the account toward the negative quickly. Then they panic, sell at a loss thinking it was their best option.
 
Geezer Garage said:
It seems I may have just taken a 200k hit. A highly rated bond investment in high end retirement housing suggested by our advisor has filed for bankruptcy. 50k of that was invested for my nephew, whose trust I control. I'm not legally responsible for that loss, but morally I feel I need to make that up. This has been paying interest for several years and then quit for several months during covid, and restarted 6-7 months ago, and then stopped paying out again. I think I'm done with financial advisors. Fortunately I have other resources, but not an easy pill to swallow, and still finding out if I have any recourse.
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That would be an ouch for sure, very nice of you to insulate your nephew from that hit.
 
We have used an independent CFP firm for the last 15 yrs. I've already posted elsewhere an interesting excerpt from their 3/31/2022 quarterly summary (1Q summary excerpt).

Tax loss harvesting really helps. We take distributions monthly, but only 25% of it is taxable income even though the distributions come 100% from a taxable account. Doesn't even come close to bumping us up to a higher tax bracket (thank goodness!).

We are fortunate as our distributions are used only for discretionary spending. At only 2.5% of our total portfolio we don't see a need to alter our risk profile. Our portfolio currently is in a 60/40 equity/bonds position, although our firm has our permission to move into a 50/50 position if they think it's warranted.
 
hollydolly said:
yes I was shocked the other day when I looked up car rentals. I was thinking I might drive to Scotland... and I don't want to put all that mileage on my own car.. It's only 450 miles or therabouts, but it's on a manual thats a few years old, so I thought I'd hire a new-ish car.. fuggettaboutitt...
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I wonder what is happening with car rentals. I have rented several times in Canada and 3 times in the UK and finally in the Republic of Ireland. The rates were doable and reasonable. Now they are "out of this world" and I refuse to rent. There are all kinds of holidays where you don't need to rent a car (cruises, trains, planes, homestays, etc.).

They seem to have some sort of excuse where they sold off their inventory (due to Covid19) and now they can't get enough cars due to a shortage of some element. Bully for them! Seems to me they lost revenue due to the pandemic and now they are going to screw you royally and make up for all that lost revenue. Hack, I'm not paying $300 or $400/day plus plenty of gas and insurance to rent a car or truck. Like, I said, there are other types of vacations.
 
debodun said:
My investment isn't in the Stock Market. I have Franklin Fund tax free securities. I am not panicking, just curious. The worst thing peple do in an economic downturn is start pulling money out of their investments. That's what caused the Stock Market crash in 1929. Sell! Sell! Sell!
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If you are in a tax free fund, the fund is investing in municipal bonds. As interest rates go up, the bond prices go down.
 
The FED just raised it's rates by .5% today, and its expected that they will do so multiple times this year. This will have some "temporary"...hopefully...effects on the markets. Interest rates on mortgages, and credit cards, etc., will be rising, and perhaps slow down some of this inflation. We may even see bank rates rising....making the money in the bank earn more than a "pittance".
 
Geezer Garage said:
It seems I may have just taken a 200k hit. A highly rated bond investment in high end retirement housing suggested by our advisor has filed for bankruptcy. 50k of that was invested for my nephew, whose trust I control. I'm not legally responsible for that loss, but morally I feel I need to make that up. This has been paying interest for several years and then quit for several months during covid, and restarted 6-7 months ago, and then stopped paying out again. I think I'm done with financial advisors. Fortunately I have other resources, but not an easy pill to swallow, and still finding out if I have any recourse.
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Sorry to read this, it is not good! I would surely change investment advisors...I had a company get me into some Real Estate Investment Trusts quite a few years ago. We lost some money on those and you really cannot get out of them... So we dumped the company and found a new one who has done a great job for us...
 
C50 said:
I do think some people depend on the growth to meet retirement needs, instead of diversifying some money into fixed earnings or simple cash accounts. They pull $1000 out a month and the account maintains a steady balance, then the market swings bad and suddenly that $1000 a month starts dinging the account toward the negative quickly. Then they panic, sell at a loss thinking it was their best option.
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I get that...but many go crazy on these market downturns, when in fact they are not at risk unless they start selling.
 
debodun said:
I've lost over $10K the last 2 months on my investment account. Can anyone explain this?
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For decades, investment companies have been investing large in China, but now that it seems inevitable the CCP will invade Taiwan, investment companies are pulling out, expecting the US to impose severe financial sanctions on the CCP when the invasion happens, and the CCP to take full control over all US interests in China.

I think that's the explanation. Plus, the war in Ukraine, probably. Investment companies put some of our money there, too.
 
I’m not saying, I’m not concerned or worried......my way at looking at things are....
Money is only lost if a person cashes out......
Beginning of Covid......seemed everything took a nose dive......but had recovered.
I’m hoping and quite sure, values will recover again.
 
Aunt Bea said:
I wonder, does it hurt more to lose $10,000.00 on a $100,000.00 portfolio than it does to lose $1,000,000.00 on a $10,000,000.00 portfolio? :unsure:
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Depends on who you are, your age, and what you planned to do with the investment, I'd guess. No one likes to see a reduction in funds, but you only "lock in the loss" if you sell. For instance, our equity investments are designated for our heirs, so hopefully they will profit from them and the market will have enough time to recover by then...lol
 
MickaC said:
I’m not saying, I’m not concerned or worried......my way at looking at things are....
Money is only lost if a person cashes out......
Beginning of Covid......seemed everything took a nose dive......but had recovered.
I’m hoping and quite sure, values will recover again.
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Market investments correct eventually. I'm fairly sure business investments will start turning toward home soon as overseas businesses return to the US. I hope the powers-that-be help make that happen quickly. It sux that politics and big business are in bed together, but that's just how it is. It would bring a whole lot of jobs, though.
 
Don M. said:
The FED just raised it's rates by .5% today, and its expected that they will do so multiple times this year. This will have some "temporary"...hopefully...effects on the markets. Interest rates on mortgages, and credit cards, etc., will be rising, and perhaps slow down some of this inflation. We may even see bank rates rising....making the money in the bank earn more than a "pittance".
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And it did. The Dow rose 975 points! I'll take it, based on the losses during first four months of the year.
 
Looks like the market is going to do a deep dive again today Deb. But yesterday, due to the big recovery, did you find that you regained some of your losses? i regained that $6,000+ that I "lost".

From what you say your invested in, seems like you have a bond fund (or funds). Here's how your investments may be affected by the Feds rise in interest rates if that's the case.
https://www.cnbc.com/2022/01/19/heres-how-rising-interest-rates-may-affect-your-bond-portfolio-.html
 

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