401K's....Non Valk

[DIGGER]

Manoman........My 401K is down about 30%....my wife's 401K is down about 20%.... with no end in sight.......

Our 401K fuel our retirement......too old to recover from a major hit.     A lot of good people are getting hurt out there.  With all these shutdowns there are going to be millions and millions of people losing their jobs.....millions of small businesses going broke.     Millions of people have no savings accounts to speak of....they just make it paycheck to pay check.   I think  the US economy is about to see one of the biggest recessions it has ever seen.

[Savago]

@DIGGER: I'm sorry for the losses, this whole thing seems quite similar to what happened in 2008.

Generally dips on stock market happens in triples. We are surfing the second dip, I expect to have another dip before the market starts to stabilize.

I'm planning to buy stock after the third dip, but I can wait a couple years for it to rebound.

Concerning the losses, I warned about the market last November:
http://www.valkyrieforum.com/bbs/index.php/topic,108992.msg1104527.html#msg1104527

[DIGGER]

https://apple.news/AhcJ3lsUkRXqFZQrsP2Uwcw

[TTG53#1717]

When my wife and I both reached 59.5 years, we took everything in our 401Ks and rolled them over into
Structured annuities .
While we max out at 11% interest each year, they have a 0% floor so when the indexes tank we don’t loose anything.

We were able to remain in our employers 401Ks as well and then I rolled that 6 yrs of contributions and matches into an IRA as soon as I retired. My wife didn’t do that so now she’s singing the blues too.

Something to perhaps consider.

[cookiedough]

When my wife and I both reached 59.5 years, we took everything in our 401Ks and rolled them over into
Structured annuities .
While we max out at 11% interest each year, they have a 0% floor so when the indexes tank we don’t loose anything.

We were able to remain in our employers 401Ks as well and then I rolled that 6 yrs of contributions and matches into an IRA as soon as I retired. My wife didn’t do that so now she’s singing the blues too.

Something to perhaps consider.

this is good planning IMO.   You done good. 

as far as 401K, I do not do much since not much made to put in.   back when I was younger,  I invested in 401K listening to what others said, and lost most all of it I put into it so figured not worth the risk.  Most say investing in 401k is a good thing long term, but once older like most of us are,  good to get outta 401K into something else.  401K to the EXTREME put into it is just not my style I guess?   

[DIGGER]

Manoman      in the news the stock futures have already hit a market stopping downturn before opening this morning

[dpcarson]

Hey Digger.  Where do you live buddy?  This is what I do for a living.  I would be glad to have a quick phone call with you to show you a tip to avoid this.  Can't back up the calendar right now, but there is a real simple trick to avoid this in the future and keep you from having to sell your holdings while things are down but still having money to live on.

[Rams]

My son checked his retirement account and told me he had lost 37% of it's value in the last month.   I told him to quit looking at it.   He hasn't lost anything unless he sells out. 

Me, I'm not looking.   It may take a while but, it'll come back as long as we don't do something stupid at the next election.

Rams

[DIGGER]

Hey Digger.  Where do you live buddy?  This is what I do for a living.  I would be glad to have a quick phone call with you to show you a tip to avoid this.  Can't back up the calendar right now, but there is a real simple trick to avoid this in the future and keep you from having to sell your holdings while things are down but still having money to live on.

I live in Tomball, Tx (near Houston) and I will be 70 in August.     I'm worried about the downturn but not panicky as I have been retired 4 yrs but not yet using our 401k     however in 2 more yrs I have to srart pulling mine out     If I can get back close to normal I will make changes.     Thanks for the offer, will keep your thoughts in mind

[Willow]

Hey Digger.  Where do you live buddy?  This is what I do for a living.  I would be glad to have a quick phone call with you to show you a tip to avoid this.  Can't back up the calendar right now, but there is a real simple trick to avoid this in the future and keep you from having to sell your holdings while things are down but still having money to live on.

I live in Tomball, Tx (near Houston) and I will be 70 in August.     I'm worried about the downturn but not panicky as I have been retired 4 yrs but not yet using our 401k     however in 2 more yrs I have to srart pulling mine out     If I can get back close to normal I will make changes.     Thanks for the offer, will keep your thoughts in mind

When you're required by law to take some out you don't have to sell and lose that investment.  If you don't need the money to live on just pull it out and immediately re-invest (at the current low rate) in a similar but non-IRA account, probably with the same company that handles your IRA.  That portion will continue to grow with your IRA until the market is back up to a reasonable cash out level.

[G-Man]

Once we put this virus to bed, and we will, we will see a recovery like we've never seen before.

My prediction.   

[dpcarson]

Hey Digger.  Where do you live buddy?  This is what I do for a living.  I would be glad to have a quick phone call with you to show you a tip to avoid this.  Can't back up the calendar right now, but there is a real simple trick to avoid this in the future and keep you from having to sell your holdings while things are down but still having money to live on.

I live in Tomball, Tx (near Houston) and I will be 70 in August.     I'm worried about the downturn but not panicky as I have been retired 4 yrs but not yet using our 401k     however in 2 more yrs I have to srart pulling mine out     If I can get back close to normal I will make changes.     Thanks for the offer, will keep your thoughts in mind

When you're required by law to take some out you don't have to sell and lose that investment.  If you don't need the money to live on just pull it out and immediately re-invest (at the current low rate) in a similar but non-IRA account, probably with the same company that handles your IRA.  That portion will continue to grow with your IRA until the market is back up to a reasonable cash out level.

If his money is still in the 401k instead of the IRA it COULD BE a good move to get it into an IRA, where you have a lot more options for investments.  Most 401k's only have about 20 options for investments, and typically have only 1 and MAYBE 2 income investments because they are typically designed for growth not preservation.  One thing I do with some few clients is to sell what is high and move it to something stable and conservative 24 months out of required distributions.  Then 12 months out convert it from there to money market or cd's to make sure you never have to cash out at a loss to take RMD's.  Goal is to have at least 24 months of necessary or required RMD's in something conservative, selectively converting what has performed well to harvest your gains.  2008 financial crisis recovered in 19 months

[Valkorado]

Hey Digger.  Where do you live buddy?  This is what I do for a living.  I would be glad to have a quick phone call with you to show you a tip to avoid this.  Can't back up the calendar right now, but there is a real simple trick to avoid this in the future and keep you from having to sell your holdings while things are down but still having money to live on.

I live in Tomball, Tx (near Houston) and I will be 70 in August.     I'm worried about the downturn but not panicky as I have been retired 4 yrs but not yet using our 401k     however in 2 more yrs I have to srart pulling mine out     If I can get back close to normal I will make changes.     Thanks for the offer, will keep your thoughts in mind

When you're required by law to take some out you don't have to sell and lose that investment.  If you don't need the money to live on just pull it out and immediately re-invest (at the current low rate) in a similar but non-IRA account, probably with the same company that handles your IRA.  That portion will continue to grow with your IRA until the market is back up to a reasonable cash out level.

If his money is still in the 401k instead of the IRA it COULD BE a good move to get it into an IRA, where you have a lot more options for investments.  Most 401k's only have about 20 options for investments, and typically have only 1 and MAYBE 2 income investments because they are typically designed for growth not preservation.  One thing I do with some few clients is to sell what is high and move it to something stable and conservative 24 months out of required distributions. Then 12 months out convert it from there to money market or cd's to make sure you never have to cash out at a loss to take RMD's. Goal is to have at least 24 months of necessary or required RMD's in something conservative, selectively converting what has performed well to harvest your gains.  2008 financial crisis recovered in 19 months

Good information! I've been told by several sources that the part I highlighted is very important.

[Willow]

Hey Digger.  Where do you live buddy?  This is what I do for a living.  I would be glad to have a quick phone call with you to show you a tip to avoid this.  Can't back up the calendar right now, but there is a real simple trick to avoid this in the future and keep you from having to sell your holdings while things are down but still having money to live on.

I live in Tomball, Tx (near Houston) and I will be 70 in August.     I'm worried about the downturn but not panicky as I have been retired 4 yrs but not yet using our 401k     however in 2 more yrs I have to srart pulling mine out     If I can get back close to normal I will make changes.     Thanks for the offer, will keep your thoughts in mind

When you're required by law to take some out you don't have to sell and lose that investment.  If you don't need the money to live on just pull it out and immediately re-invest (at the current low rate) in a similar but non-IRA account, probably with the same company that handles your IRA.  That portion will continue to grow with your IRA until the market is back up to a reasonable cash out level.

If his money is still in the 401k instead of the IRA it COULD BE a good move to get it into an IRA, where you have a lot more options for investments.  Most 401k's only have about 20 options for investments, and typically have only 1 and MAYBE 2 income investments because they are typically designed for growth not preservation.  One thing I do with some few clients is to sell what is high and move it to something stable and conservative 24 months out of required distributions. Then 12 months out convert it from there to money market or cd's to make sure you never have to cash out at a loss to take RMD's. Goal is to have at least 24 months of necessary or required RMD's in something conservative, selectively converting what has performed well to harvest your gains.  2008 financial crisis recovered in 19 months

Good information! I've been told by several sources that the part I highlighted is very important.

As to the highlighted portion it depends upon whether the money from the IRA (or 401K) is needed for normal expenses.  If no then I fully explained how one does not have to take a loss at required RMDs even if the market is on a low cycle.

Protecting from loss also means restricting growth.  If those are the funds one needs to live day to day that may be worth the loss of gain.  I have retirement and SS to live on day to day.  My IRA funds are to be used for extra expenses such as vacations and emergency stuff.  I hold my funds in high risk buckets.  High risk also means high gain.  I take this setback and hold firm for the recovery as that's my best path.

For some of us that's the way it is.  For some it is not.  Age alone should not dictate how one invests.

[fudgie]

Dad lost $30k in his Railroad stock the last few weeks. He doesn't worry cause in a month or so it will be back up to normal, cause they will be moving a lot more product. Technically he is not out anything cause the stock was free.