Anybody Buying Yet? Where’s the Bottom?

[Nick87]

Dollar cost averaging. It's basically, keep adding to your positions, with every pay period. When stocks are down, you get more shares, less when they are higher.

More or less what we try to do. Didn't know there was a term for it.

 

[SAJ-99]

I promise all of you that you were far more responsible about building a retirement than most. The median retiree is retiring with $410,000 saved. Do the math. It is pretty clear that person isn't retired at all. Maybe 100% stocks on a hope and a prayer (and a lot of ramen noodles) is the median person's retirement strategy.

 

[Flatrock]

Sure, but 1) you should reduce stocks holding as you age and 2) if you know the person that sees a recession coming please introduce me.

1. Yes I agree but that's a different issue. Reducing risk as you age vs. reducing stock exposure because of current negative events are 2 different things.
2. I agree it's tough but that's THE big thing that a person should be watching for. Otherwise just have an appropriate stock and bond mix, rebalance through the years and ride out the bad times.

 

[Bonasababy]

One of Warren Buffet's tenets is that the best time to buy, is when everyone else is heading for the exits, easier said than done.

Warren can afford to have cash sitting their waiting...most of us cant...or at least shouldn't have more than a few years of expenses in it.

 

[406dn]

Warren can afford to have cash sitting their waiting...most of us cant...or at least shouldn't have more than a few years of expenses in it.

No one puts more importance on maximizing their ROI than Buffet.

His point is that having some cash readily available for investing can pay big. My best example is some years old now. Target had reported disappointing earnings. Their stock dropped 17% that day. I did not think that a drop that large was rational. The next day I purchased a thousand shares @ $53ish/share. Roughly three years later, I sold it at $175/share.

I wish all of my moves paid as well.

 

[BuzzH]

I promise all of you that you were far more responsible about building a retirement than most. The median retiree is retiring with $410,000 saved. Do the math. It is pretty clear that person isn't retired at all. Maybe 100% stocks on a hope and a prayer (and a lot of ramen noodles) is the median person's retirement strategy.

I think there's a really high percentage that the only retirement advice I would give them is:

1. Bet it all on black a half dozen times.
2. Go buy XXX dollars worth of lottery tickets.

About the only way they can retire.

 

[Exhausted]

We got some big money ballers in this thread . . .

 

[Cammy]

Agree that investing comes down to risk tolerance. Wife and I fully retired 4 years ago and enjoy everyday. Transferred my 401k balance to my IRA account and told my advisor to slam his foot on the gas and let-r-rip. I looked at the investments we have as long term with a won't need the money type of attitude. Have only asked him to divest me from one stock position (Peloton COVID timeframe) other than that I have turned a blind eye and just let it ride.

I have a pension that covers expenses and allows us to take a cross country vacation each year and apply for out of state tags. We are 100% debt free and own our home. Live simple and grow a lot of what we eat. Fluctuations in the market are not really concerning given the long term mentality.

 

[Cammy]

We got some big money ballers in this thread . . .

Or really good liars.

 

[406dn]

I promise all of you that you were far more responsible about building a retirement than most. The median retiree is retiring with $410,000 saved. Do the math. It is pretty clear that person isn't retired at all. Maybe 100% stocks on a hope and a prayer (and a lot of ramen noodles) is the median person's retirement strategy.

The data I find states that for those 65ish, the median retirement nest egg is $200k. That, to me, perfectly illustrates how inadequate the retirement policies in our country are.

Very few companies offer a defined benefit pension, presently. Most have moved to a match on something like 401k accounts. I was very fortunate to get hired by big oil. They offered a defined pension, and a savings plan, with a very generous match. They allowed you to take the retirement benefit as a lump sum, which is what I chose. They also offered company subsidized retiree health insurance. So, I am not a typical retiree.

My best advice to those working with a 401k with a match is to contribute enough to get the match. Then fund a Roth IRA to the extent you can. Then take as much risk in the market that lets you sleep at night.

 

[Nick87]

The data I find states that for those 65ish, the median retirement nest egg is $200k. That, to me, perfectly illustrates how inadequate the retirement policies in our country are.

Very few companies offer a defined benefit pension, presently. Most have moved to a match on something like 401k accounts. I was very fortunate to get hired by big oil. They offered a defined pension, and a savings plan, with a very generous match. They allowed you to take the retirement benefit as a lump sum, which is what I chose. They also offered company subsidized retiree health insurance. So, I am not a typical retiree.

My best advice to those working with a 401k with a match is to contribute enough to get the match. Then fund a Roth IRA to the extent you can. Then take as much risk in the market that lets you sleep at night.

I have a pension and to be honest I'd of probably been much better off with a 401 from day one, if and its a big "if" someone had taught me about compounded interest and making money work for you at a young age. That definitely wasn't the case so I'm glad to have what I do with the pension.

 

[Irrelevant]

"if" someone had taught me about compounded interest and making money work for you at a young age.

We need to spend a little more time teaching kids about financial literacy. I mean, I can't say there's something else that should be cut, but this needs to be added.

 

[Nick87]

We need to spend a little more time teaching kids about financial literacy. I mean, I can't say there's something else that should be cut, but this needs to be added.

I could think of plenty to cut that eould br far more important. However, I think that something that should probably be taught at home. Most everything is come to think of it.

 

[406dn]

I have a pension and to be honest I'd of probably been much better off with a 401 from day one, if and its a big "if" someone had taught me about compounded interest and making money work for you at a young age. That definitely wasn't the case so I'm glad to have what I do with the pension.

Yes, it is sad that more young people don't know how valuable compounding interest is. No one handles their earnings perfectly. Life can throw hurdles at you. Life has been kind to me.

 

[Nick87]

Yes, it is sad that more young people don't know how valuable compounding interest is. No one handles their earnings perfectly. Life can throw hurdles at you. Life has been kind to me.

I work with plenty of people who makes a ridiculous amount of money.If it wasn't for the pension, they wouldn't have two nickels to rub together at the end of the year. I mean it is literal as possible.

 

[406dn]

I work with plenty of people who makes a ridiculous amount of money.If it wasn't for the pension, they wouldn't have two nickels to rub together at the end of the year. I mean it is literal as possible.

Yes, I certainly saw the same. It's part of human nature, I think.

 

[Nick87]

Yes, I certainly saw the same. It's part of human nature, I think.

I think you're right. It took me a while to figure it out. I'm not gonna lie, but it blows my mind. How some people can be almost sixty years old and still have not put two and two together on not spending everything they make.

 

[406dn]

This thread shows how important Social Security is to our society.

There is and always will be a percentage of people who reach old age and do not have anything to show for their lifetime of labor.

 

[jryoung]

We need to spend a little more time teaching kids about financial literacy. I mean, I can't say there's something else that should be cut, but this needs to be added.

Absolutely, I tell my son frequently that compounding interest is the 9th wonder of the world.....silly for sure, but a hook/slogan that stays. When he want to buy something relatively expensive I ask, what would that money be worth in the S&P in 30 years?

I'm hopefully these seeds will become trees that bear fruit.

 

[Exhausted]

I have a pension and to be honest I'd of probably been much better off with a 401 from day one, if and its a big "if" someone had taught me about compounded interest and making money work for you at a young age. That definitely wasn't the case so I'm glad to have what I do with the pension.

I had good advice from parents about saving at a young age but didn’t take it unfortunately.

Wasted my 20’s not saving while raising a young family. Spent 8 years helping a guy build a company, didn’t contribute to any retirement the whole time. I had minimum rollover 401k from prior jobs. Finally realized about 2.5 years ago I was wasting time and left that job/company.

Now I’m sitting at 39 years old with only $50K retirement specific saving for both my wife and I. Playing catch up from wasted time unfortunately.