rgp
Well-known Member
- Location
- Milford,OH
Well, I'm down to just one stock @ this point. I have a meeting with a financial/investment advisor Thursday......so I'll let ya know.
Your advice is true if you are going to be around long-term but over the age of 70 who knows? I saw the decline coming because of our country's "situation". it's still dropping. It may recover in my lifetime or it may not....risk is increasing. Question I faced was, do I want to wait to see if death comes first or if the stock market recovers first, while missing out on a vibrant part of my life and giving up on my dream.All who own stocks and bonds are seeing a downturn in the value of those investments. Understand that this loss in value does not become a true loss in value unless you sell it. It only becomes a true loss in value if you cash in some of those devalued stocks and bonds. Follow me on this...if you have lost 30% in value and your original value was $100 dollars, the shares are now only worth $70, yet the number of shares you own is the same. Jump forward a year after you sold your stocks and the same investments are now back to $100, but you only have $70 to buy back into the market. Your loss is real...
Your advice is true if you are going to be around long-term but over the age of 70 who knows? I saw the decline coming because of our country's "situation". it's still dropping. It may recover in my lifetime or it may not....risk is increasing. Question I faced was, do I want to wait to see if death comes first or if the stock market recovers first, while missing out on a vibrant part of my life and giving up on my dream.
I saw an opportunity to move my stock investment to another healthier investment...prime ocean view real estate that will bring excellent rental income as well as hold it's value and grow substantially since it's a beach house (it already has)....purchased land December of 2020 where I could build a house using the sale of my previous house and a large chunk of change from my stocks. I know the housing market and rents may decline but I know I'll make it through that just fine.
I knew if I delayed, I risked the market continuing to decline...it has...but the house is paid for now. I've never had a loan because I prefer
no-debt. I know creative financing works for some but I'm not comfortable with debt. Yes, I will pay IRS taxes bigtime for this stock market "income". It's worth it to me. I'll have rental income. And I have enough left to pay IRS (although I don't have a final tally yet). Even if I didn't, a plan with IRS could be paid with rental income (house also has a small apartment I can stay in during rental season).
Some may say...but you're in a hurricane prone state. Yes, but I've made sure my builders are focused on structural integrity to withstand a hurricane, it's being inspected almost weekly...also, my son-in-law own's a contracting business, and I have insurance.
Lot's of risks I'm willing to take on. I'm now here full time on the island as we do the finishing touches. The state of the country has been a challenge with delays but I'm almost there...perhaps a very Merry Christmas present.
Thank you, and that was exactly the message I was delivering.I interpreted @dseag2's post as delivering exactly the opposite message. He's hanging tough because he's pretty sure Carnival (and other stocks) will rebound. For his sake, I sure hope it will.![]()
First, Carnival Corp is not a "failing" company.dseag2...sighting one example of a failing companies stock drop has nothing to do with a stock market slump!
This post could be misleading to many who are not familiar with the markets.
Are you suggesting people should sell all their stocks or even some of their stocks during this downturn?
THAT Is the Most Important thing a person can do to prepare for retirement. House, car, credit card, etc., debt is a Huge drain on retirement resources.I really think that 'no debt' might be the key to riding out this recession. We paid off all of our debts before I retired.
Absolutely. Our house is paid for. My car is paid for. We installed new windows, new flooring, new A/C units, a new water heater, new refrigerator, new washer, etc. when I was working and could afford it. Now it is just paying the monthly bills. Hopefully we can ride out inflation, a possible Recession and the market downturn.I really think that 'no debt' might be the key to riding out this recession. We paid off all of our debts before I retired.
Inheritances can also be a big help with the retirement bottom line.One of my maternal uncles gave me one of the best pieces of advice I've ever received. One day, when I was in my 20s, he asked me when I was going to get married. I replied that I hadn't planned to. Then he said, "If you don't get married you'd better be one of three things - smart, pretty or rich." That's when I started saving my money.![]()
The American Stock Market has fully recovered 100% of the time following a decline in stock values...that's a good record! But, you have to 'stay the course' or you will take losses.I interpreted @dseag2's post as delivering exactly the opposite message. He's hanging tough because he's pretty sure Carnival (and other stocks) will rebound. For his sake, I sure hope it will.
I have zero tolerance for the stock market. Never have had. My siblings and I (and our spouses) are extremely risk-averse. We watched our father play the market like a rabid gambler at a blackjack table. Ultimately, he probably made more than he lost, but there were times when he lost big on stocks and commodities. (I remember an unhappy evening in the early 70s when he took a $35,000 bath on pork bellies. There was zero joy in Mudville that night.)
When the stock market tanked at various points, so did his portfolio, but like most inveterate gamblers, he couldn't resist the market's siren song for very long. Lucky for the him and the family, he was a very high earner so we had ample money to live, but the steady underlying drumbeat his children heard was that the markets weren't to be trusted.
A friend has become a day trader after retiring as a dentist. It doesn't appear he's terribly successful at it, but like my father he loves the thrill of the chase.
Obviously other people's experiences and risk tolerances are different, but I have zero dollars in the stock market and am happy to not be tossing and turning over my investments every night.
I agree with your comments, as you made your decisions based on a good understanding of the market and associated risks (unlike many). You are right in that you cannot take it with you, so why not enjoy some of it now! Be happy, have some fun, and good luck!Your advice is true if you are going to be around long-term but over the age of 70 who knows? I saw the decline coming because of our country's "situation". it's still dropping. It may recover in my lifetime or it may not....risk is increasing. Question I faced was, do I want to wait to see if death comes first or if the stock market recovers first, while missing out on a vibrant part of my life and giving up on my dream.
I saw an opportunity to move my stock investment to another healthier investment...prime ocean view real estate that will bring excellent rental income as well as hold it's value and grow substantially since it's a beach house (it already has)....purchased land December of 2020 where I could build a house using the sale of my previous house and a large chunk of change from my stocks. I know the housing market and rents may decline but I know I'll make it through that just fine.
I knew if I delayed, I risked the market continuing to decline...it has...but the house is paid for now. I've never had a loan because I prefer
no-debt. I know creative financing works for some but I'm not comfortable with debt. Yes, I will pay IRS taxes bigtime for this stock market "income". It's worth it to me. I'll have rental income. And I have enough left to pay IRS (although I don't have a final tally yet). Even if I didn't, a plan with IRS could be paid with rental income (house also has a small apartment I can stay in during rental season).
Some may say...but you're in a hurricane prone state. Yes, but I've made sure my builders are focused on structural integrity to withstand a hurricane, it's being inspected almost weekly...also, my son-in-law own's a contracting business, and I have insurance.
Lot's of risks I'm willing to take on. I'm now here full time on the island as we do the finishing touches. The state of the country has been a challenge with delays but I'm almost there...perhaps a very Merry Christmas present.
I agree with your comments, as you made your decisions based on a good understanding of the market and associated risks (unlike many). You are right in that you cannot take it with you, so why not enjoy some of it now! Be happy, have some fun, and good luck!
This is true, but only from a macro perspective. Yes, the S & P 500, DJ Industrial Average 30, and the Nasdaq Composite have all eventually recovered from downturns 100% of the time. But individual stocks and funds do not necessarily fully rebound after bear markets and other declines.The American Stock Market has fully recovered 100% of the time following a decline in stock values...that's a good record! But, you have to 'stay the course' or you will take losses.
We have a mix of stocks and bonds 60/40. We have been in the market since 1975. Our investments have always trended up, lots of ups and downs, but they always have recovered and then grown. Overall, our growth has exceeded our expectations. Of course, some companies have failed during that time. We are diversified never putting more than $5k to $6k into any one stock, so a company failure is not noticed in our growth/ returns over the year. We also take advantage of mutual funds and indexed funds, again as part of diversification. Since we have been retired, we are very conservative in our investments, not taking much risk, we just focus and safe slow growing funds.This is true, but only from a macro perspective. Yes, the S & P 500, DJ Industrial Average 30, and the Nasdaq Composite have all eventually recovered from downturns 100% of the time. But individual stocks and funds do not necessarily fully rebound after bear markets and other declines.
Nasdaq recovered from the dot-com bubble implosion between 2000-2002 when it fell 78% in 19 months, but many companies on the Nasdaq never came back. Pets.com comes immediately to mind, but it sure wasn't the only one.
The stock market crash that started Black Monday (Oct 28, 1929) needed 25 years (November 23, 1954) to return to its all-time high.
I have few remaining assets in equities. So current situation is a yawn. Since retirement, savings only in trivial interest banks, that have of course shrunk due to inflation, mainly because have been unmotivated to bother despite regularly being pummeled by investment mailings. Probably because I've had a Platinum Visa card a long time. Gaining a few extra bucks each year from usual investments like dividends is chump change that wouldn't change anything in my life squat. So seem to have lucked out.
Not everyone has the same risk tolerance. It has nothing to do with understanding markets, investments, financial opportunities, their associated risks. People choose based on individual financial situations, comfort zones, and in some cases, their religion.I agree with your comments, as you made your decisions based on a good understanding of the market and associated risks (unlike many)
Suggesting that having an understanding of markets, investments, etc. is not a part of managing and individuals' investments is goofy! No one suggested one must be an expert, but a fundamental understanding is important.Not everyone has the same risk tolerance. It has nothing to do with understanding markets, investments, financial opportunities, their associated risks. People choose based on individual financial situations, comfort zones, and in some cases, their religion.
This isn't a one-size-fits-all world.
At the risk of sounding like a wise-guy, if you don't know why, then you might have to rethink your investments. You have some homework to do. In the vernacular of the investment trade it's called 'due diligence'. There's no reason to panic. It's not rocket science. Well, that assumes you didn't invest in complicated investment products like certain variable annuities that literally have dozens of pages of legal verbiage. Then it's worse then rocket science.I've lost over $10K the last 2 months on my investment account. Can anyone explain this?