Dump the market?

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67Dart273

67Dart273

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Thinking seriously of getting "out." What about CD's? Maybe put money into several so if you need "some" you won't lose terribly. I'm thinking fairly short term, like 2 years etc for some and max of 5. Bear in mind I'm 73 I "may need" some money
 
67Dart273 said:
Thinking seriously of getting "out." What about CD's? Maybe put money into several so if you need "some" you won't lose terribly. I'm thinking fairly short term, like 2 years etc for some and max of 5. Bear in mind I'm 73 I "may need" some money
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you gotta be down quite a bit right now. Are you sure you want to bail right now. It’s only a paper loss till you sell. Good luck
 
Sorry, no advice here, i did hear it's not smart to hold cash right now and if you do don't put it in the bank. FWIW
 
My father and father in law never believed in playing the market or anything other than insured CD's with a set interest rate
Sound advise for the working man
 
With inflation back, you are effectively losing money if you have money in CDs. My theory is you need to have some money invested in the market in some way in order to keep up. However, there is risk in the market, so you can always lose there too. I am 66 and I am about 30% in the market.

However, Most folks I know generally don’t take financial advice from me.
 
What is CD interest right now? 1% for 5 years?

How long has the OP been "in"?

Post #2 assumes a time frame.

I've been in since 1999 and I'm WAY up.

I made the most by staying in and investing more during the three worst blows to the market since I've been in, when a lot of people got out-

9/11/01, the great recession of 2008-1012, and the 2020 November "tank".
 
Invest it all in firearms and ammo

Even if you never need to liquidate, those at least are still valuable assets in a SHTF scenario

Same is true for real estate
Especially huntable and tillable acreage
 
We can give you all the advice in the world. you’d be getting all different opinions that won’t give you a definitive answer and will confuse you.

If you have a wealth manager talk to them. If not find a reputable one and talk to them.
At your age cds may not be ideal, but that’s my opinion. That’s why I suggested talking to someone that deals with financial planning.
It’s worked for us.
 
67Dart273 said:
Thinking seriously of getting "out." What about CD's? Maybe put money into several so if you need "some" you won't lose terribly. I'm thinking fairly short term, like 2 years etc for some and max of 5. Bear in mind I'm 73 I "may need" some money
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I reinvested my IRA 2 years ago in Short term Annuities.
They dont return much but they are at a gauranteed return rate and you keep the tax deferment until you cash out. Stay away from long term or life annuities.
Brokers dont like annuities because they dont make any money on them.
The longer you stay in the market the more money they make that is way they always try to convince you to "Stay in the market for the long run".
Good luck
 
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Never met a financial planer or wealth manager, whatever they call themselves theses days that had the clients best interest at heart
While I dont deny them a living they are concerned with getting your money and their commissions first and foremost
The only fund I made money with was the city deferred compensation fund.....Billions of dollars and its run by salaried professionals. You invest in three brackets, Risk, moderate and low. You did your own investing, no fees no planners no brokers
 
Isn't it already tax deferred inside an IRA? Having a tax deferral instrument inside an already tax deferred vehicle/account.

512Stroker said:
I reinvested my IRA 2 years ago in Short term Annuities.
They dont return much but they are at a gauranteed return rate and you keep the tax deferment until you cash out. Stay away from long term or life annuities.
Brokers dont like annuities because they dont make any money on them.
The longer you stay in the market the more money they make that is way they always try to convince you to "Stay in the market for the long run.
Good luck
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Del,

I guess it depends on your time frame to weather volatility.
 
crackedback said:
Isn't it already tax deferred inside an IRA? Having a tax deferral instrument inside an already tax deferred vehicle/account.
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You are correct the taxes are deterred in a non Roth IRA the deferment stays in place when you invest in some annuities, do your homework for sure prior to any investments. The question you dont ask will be the one that bites you in the ***.
 
crackedback said:
Del,

I guess it depends on your time frame to weather volatility.
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That's the thing.........I'm gettin old. If "I need this" and things are down at the bottom, I may not live long enough to recover much.
 
Steve welder said:
Never met a financial planer or wealth manager, whatever they call themselves theses days that had the clients best interest at heart
While I dont deny them a living they are concerned with getting your money and their commissions first and foremost
The only fund I made money with was the city deferred compensation fund.....Billions of dollars and its run by salaried professionals. You invest in three brackets, Risk, moderate and low. You did your own investing, no fees no planners no brokers
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I think the same, except they don't make much money if "I" don't make much money
 
It's difficult to pull out when your down 15/20 percent. Not the first time it's taking a big hit, but it has come back each time. I've been in since '94 and have taken a few roller coaster rides, but overall done very well. I've sat tight and have even bought when it's down. Got out of individual stocks many years ago and purchased mutual funds to help my blood pressure normalize. I guess it would depend on your situation and tolerance for pain. Pulling out now and it's gone forever, staying in and you can hope it returns positive as it has in the past. I'm 72, and think this will be my last ride, as we'll wait it out now, and then move most of it out when/if the market comes back. Not out of the market, but in some "safer" funds with a smaller returns.
 
Most of the stock brokers make money one of two ways, or both:

1. They make a commission on buys and sells. Doesn’t matter to them if the market is going up or down. All that matters is that you are trading

2. They charge you a percentage of your account balance. They make more money when you make money.

There are lots of factors to determine what is best for you.
 
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no don't. Wait for it to come back to 36,500 and then seriously think about toning down your riskier assets then. Others have already said that now is not the time for CD's. The FED is fixin' to back out of the 'quantitative easing' strategy more aggressively very soon and I expect things to get better in equities and government bonds. Sell extra homes and used cars if you got 'em!

good luck
 
FED says interest rates will go up in March.

"Buy low" is as easy as staying in (and buying) when the market is down.

"Sell high" is somewhat tougher.

I sold some financials a year ago, when they were a 120% gain.
Yesterday they are up 135%

I sold some real estate REIT (up 72% at the time, down from 85%) when it looked like a downturn was ahead.
Yesterday they are back up near an 80% gain.

At least I didn't sell all of them.

IIRC the financial pays 6% and REIT pays 9%
Losing that income makes it tough to sell.
 
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Thanks for the thoughts guys. Sometimes things you say inspire more thought and more research. I don't have "a lot" of money, and the Bidet policies are certainly going to denegrate that, through inflation if nothing else.
 
If you are getting to a point where you are unsure you could outlast a downturn before you need the money, seriously consider transitioning to more secure assets.

Low interest rates and current taxing policies have made it quite attractive for companies to buy back a lot of their stock even if the company has to borrow money to do it. Those days are coming to an end. When, not if the economy slows down companies that hold a lot of their own stock will have to sell those shares to raise capital. The more shares they sell, the more it drives the share price down. With share prices falling, investors sell out of the market driving prices down more, and the downward spiral tightens. This is the stuff bear markets are made of. We are well overdue for one. There's a lot of political will to create a recession before the 2022 mid-term elections that will last through the 2024 presidential election. If you're not willing to wait out a 30-50% loss, consider your options.
 
Scody21 said:
Interest rates are going to rise in March according to the fed.

To Combat Biden's Massive Inflation, the Fed Announces It Will Reluctantly Increase Rates, Something Extremely Rare Under Democrat Administrations -- You Won't Believe the Numbers!
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67Dart273 said:
Thanks for the thoughts guys. Sometimes things you say inspire more thought and more research. I don't have "a lot" of money, and the Bidet policies are certainly going to denegrate that, through inflation if nothing else.
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You're paying for the mistakes made before the 2020 election.
His name is BIDEN and didnt the moderator just address posts like yours
Read a book instead of posting crap all day on a car forum
 
Steve welder said:
You're paying for the mistakes made before the 2020 election.
His name is BIDEN and didnt the moderator just address posts like yours
Read a book instead of posting crap all day on a car forum
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there is a distinct difference between a mistake and a case of theft
 
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