What to do with the nest eggs

On this topic. For those of you with professionally managed investments, are you willing to share the % fee? On mine it’s is 0.85% on the non-cash equivalent balances. I am debating moving to a transaction bases account given my lack of transaction churn.
I recently negotiated mine down to a quarter percent. If you're happy with your person, ask them to reduce the rate, I did and he did.
 
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My mom lives off her social security check each month, they didn't save a dime. I'm the youngest of four, none of my siblings have planned for retirement. The oldest, my brother, just won the lottery, it's called marrying a rich woman at 63 years old. I don't think he had $200 saved at that point. He recently called me to get advice on purchasing stocks. I shook my head.
Sadly, they are in the majority of older Americans. It’s hard to believe there is so much financial apathy out there but really easy to understand why there is so much government dependence and they will keep voting in the Dems that promise the goodie’s
 
We are close to a pretty critical level right now. Low Friday on the /ES futures was 4118.75. Back on the week of 2/21 we had a pivot low of 4108.75. If we break that then I see more downside. We may break it briefly then pop back up but if we break and fail to reverse back up then I see more selling. There will be stops set at that level and if it is broken those stops will automatically sell. The next pivot low would be 4051 from back on the week of 5/10/2020. Not saying we would hit that level but that would be the magnet trying to pull to that level.

It will be interesting but there are so many factors going against the economy right now that nothing will surprise me.

Not advice but just what I see on the chart.

Unfortunately charts lag. While I believe in the principle of market technical analysis (aka everything is baked into the price) waiting for break outs in either direction can leave you exposed - especially in the case of a big unpredictable break through that leaves you in a position unable to trade in the down slide.

-Kevin
 
I went cash 2 months ago.. everything. I didn’t ask.. just did it. my adviser just said I don’t blame you. So far it has worked. Now just need to decide when to get back in.

Cash is king and safe - but in this market it is also a losing proposition. With the current inflation your buying power is being diluted. Short term hedges like Fed I-Bonds can offer decent returns (limited purchase amounts) if you can hold for a year and be will to give up a quarter (3 months) of interest. Also short term T-Bills look interesting.

That is unless you are planning on a specific market deflation or investment where you will be able to jump in and make a cash purchase at a large discount. Something like waiting for a competitor to go out of business and pickup assets in a fire sale.

-Kevin
 
Unfortunately charts lag. While I believe in the principle of market technical analysis (aka everything is baked into the price) waiting for break outs in either direction can leave you exposed - especially in the case of a big unpredictable break through that leaves you in a position unable to trade in the down slide.

-Kevin
Price action doesn't lag. 99% of indicators do so you are right about that. My trading is 99% based on price action alone. I do use a few moving average lines to support my price action analysis but price action is my first go-to
 
Looking for something safe and liquid... Fed announced the new adjusted I Bond rates and the are now paying over 9% - min one year (or no interest) - max $10K purchase /per year /per person. 5 year term or forfeit last 3 mos interest.

-Kevin
 
I read if you're still 10 years away from retirement, stay the course. You have time to recover.

Try using options and other derivatives to provide some downside protection.

Other than that, buy low, sell high.

I know it's hard to see the losses right now. I continue to contribute because history will repeat itself and the stock values will ultimately come back. 2024 you'll likely see the upswing around election time.
 
We are patient, long term investors and remain fully invested. Paper losses don’t materialize into actual losses unless you sell. Quality companies are still performing and paying dividends. We did shorten durations on bonds to limit exposure to rising interest rates which is just now happening. Mix is about 52% equity with balance in bonds given our ages. Sticking with our plan as we have done during the previous corrections. Not a fun time time but when the markets bounce back you want to be invested or you will miss the bounce when it happens. Stocks are on sale now. Look for bargains.
 
The old adage... It's time in the market, not market timing, but with that being said I'm close to $250k off in value. I'm not selling so I guess I haven't lost anything.
 
Ouch you guys… I have only got out of the market twice….a couple months ago and 2008….. I don’t like this current gong show at all. Biden, Russia how do you feel good about any of it?….. I just put a hold on all capital spending at work and I need machines……but I am a bit freaked out right now.
However I am quoting defense work…..like crazy….some kind of over the shoulder missile components….. I already make components for government bullets and that has doubled in production…. Something is going on
 
Ouch you guys… I have only got out of the market twice….a couple months ago and 2008….. I don’t like this current gong show at all. Biden, Russia how do you feel good about any of it?….. I just put a hold on all capital spending at work and I need machines……but I am a bit freaked out right now.
However I am quoting defense work…..like crazy….some kind of over the shoulder missile components….. I already make components for government bullets and that has doubled in production…. Something is going on
I am kind of waiting for the other shoe to drop as well. Kinda like 2008, which both sucked by was refreshing because it gave me back my free time.
 
I think it's important to make sure you're properly allocated. If you're within 10 years of retirement and 100% equity, you may have a problem. Now is a good time to take a look at that allocation. You'll still lock in the gains of the past 10+ years and get to point where you can sleep more confortably.
 
I personally don't think we are near bottom yet but that isn't a technical assessment, just more of a fundamental assessment. Like said, Biden, et al, have this country and economy so messed up right now that I could easily see another 2008 coming. Inflation is at record highs, nobody wants to work. Gov't handing out 'free' money like it grows on trees. Wife told me today she was talking to her students and asked them if they were looking for summer jobs and mentioned a few places they could look. Two of them said their parents didn't allow them to work cause their parents would lose food stamp money. Yet the one said he just got a new 50" TV for his room.
 
One thing 2008 taught me is to have enough cash on hand to ride stuff like this out and that becomes huge in retirement. If you have to start pedaling your equities when they are down 10/15% it's going to taste even more like a crap sandwich further down the road. Selling low = 'bad' if I remember right. :D
 
My wife is at RMD time with her 401K. She hasn't stopped working yet, she plans to keep working and postpone the RMD. She said she'll quit when she starts getting lost on her way to work,:rolleyes: maybe things will be back to normal by then.
 
I still have 10 years left. I talked to my advisor last week. Earlier this year I went 60% fund that tracks S&P. No small caps as they are effected too much by interest rates. Looking for companies that do well in a contracting market. I keep 20% dry powder to get back in. The other 20% is in mid larger companies. But again my timeline still works for me.
 
I personally don't think we are near bottom yet but that isn't a technical assessment, just more of a fundamental assessment. Like said, Biden, et al, have this country and economy so messed up right now that I could easily see another 2008 coming. Inflation is at record highs, nobody wants to work. Gov't handing out 'free' money like it grows on trees. Wife told me today she was talking to her students and asked them if they were looking for summer jobs and mentioned a few places they could look. Two of them said their parents didn't allow them to work cause their parents would lose food stamp money. Yet the one said he just got a new 50" TV for his room.
Yeah but a 50" TV is $300 at WalMart these days...
 

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