Turdferguson
Just a turd
I put something in her "basket"
401K Performance
- Thread starter Fred Forbush
- Start date
Another under performing fund. Just what she wants.
realbrown1
Annoy a liberal today. Hit them with facts.
The point being if the market tanks when you are 65, and you don't need the money right away, then wait it out.
95% of bear markets totally recover within 5 years.
With the average lifespan creeping toward 80, chill a little.
realbrown1
Annoy a liberal today. Hit them with facts.
1989
Well-Known Member
Probably? Which stocks are those probable winners?
UpstateNYUPSer(Ret)
Well-Known Member
...or if the market comes back stronger than ever then they are real gains...
UpstateNYUPSer(Ret)
Well-Known Member
Apple.
Shifting Contents
Most Help Needed
I love pumpkin
Just not pumpkin beer snobs
But I don't know much about 401k and stocks
I have a guy
1989
Well-Known Member
When? What's your exit strategy? Apple runs in cycles.
UpstateNYUPSer(Ret)
Well-Known Member
My Edward Jones adviser wants me to keep it for the long haul.
I just added 5 more shares using their money (dividends---$.57/share).
1989
Well-Known Member
Bernie madoff has time on his hands.
1989
Well-Known Member
So you don't have an exit strategy? Did you pay this guy to advise you to round trip apple?
UpstateNYUPSer(Ret)
Well-Known Member
My general rule of thumb is to buy or sell when the price has moved 50% of more in either direction. I bought the bulk of my 722 shares @ $95/share.
1989
Well-Known Member
Nobody ever got hurt taking a gain, but a 50% stop loss could be devastating. Specially in a 401K where you have no tax advantage in taking a loss.
I know that some say "what if I miss out?" But that is really isn't true. Try taking your gains at a reasonable 25-30%, or even 15% of tax-free gains. You can make a killing.
olroadbeech
Happy Verified UPSer
i generally buy a stock for the dividends. usually blue chips or close to it. has worked for many many years. AT&T , Johnson and Johnson , Exxon , just to name a few. at our age we don't want to take too many risks.
realbrown1
Annoy a liberal today. Hit them with facts.
Blue chip stocks, up and coming stocks.
Everyone has a choice on what to invest in.
You have a choice on how much risk you are willing to take.
When the market crashes, you don't sell.
You invest in the recovery.
The market always recovers.
By The Book
Well-Known Member
If you are waiting for 50% return on your apple shares, I think you will miss a lot of reinvestment opportunities. If it hit $133.00, and you bought at $95.00, that's a very large gain! I know it's easier said than done to time out and realize the full gain but looking at the chart over the last year there were a couple opportunities to make your 50% return. You needed to take them at 2 separate times though. Then you could have reinvested both times when it neared $95.00. Buy low and sell high would of worked in this situation well with Apple shares.
twoweeled
Well-Known Member
Assuming your number are correct. If on average a bear market recovers in 5 years. I wonder how "recovered" is define. Does that mean your at least back where you where, when the market was at it's high? Or does it mean, the market is starting a new up trend? Also, I'd have to assume they are talking about an average of 5 years from the "BOTTOM, just prior to the start of an up trend. A bear market can go for many years. It can also bounce on the bottom a few times before it starts that new uptrend. I'ts easily possible to be in a bear market for 10-20 years! Market turning bad when someone is 65, could be screwed into his 80's. Then when he's 80 and the market has bottomed, it could recover in 5 years. Now he's 85. the stat stating most bear markets recover in 5 years can be very misleading.
That's why you have different buckets if money,inside if your 401k. Some cash or cash equivalents. Some bonds and some stock . If the Market is doing well,take some money out of your stocks. If it is doing poorly,tap into your cash or bonds.
olroadbeech
Happy Verified UPSer
since 1929 there have been 25 bear markets. that is the s&p 500 has dropped 20% or more.
the average bear market lasts only 10 months. time between bear markets is about 3.5 years. so I agree with realbrown1. wait out the bear markets if possible. we use dollar cost averaging so during bear markets we actually buy more shares of an index fund with the same amount of money.
so when the market gets back to where it was we have made money instead of just breaking even. do what people like Warren Buffett does. when everyone is panicking and selling , he is buying .
googled " history of U.S. Bear markets since 1929 ."
the average bear market lasts only 10 months. time between bear markets is about 3.5 years. so I agree with realbrown1. wait out the bear markets if possible. we use dollar cost averaging so during bear markets we actually buy more shares of an index fund with the same amount of money.
so when the market gets back to where it was we have made money instead of just breaking even. do what people like Warren Buffett does. when everyone is panicking and selling , he is buying .
googled " history of U.S. Bear markets since 1929 ."
