Even in retirement you should never get completely out of stocks. I'm fixin to retire in about 3 months and I reallocated to 60/40 stocks/bonds and that's where I plan to leave it. I would never advise anyone to go below 40% in stocks especially if they plan on a long retirement, you need those returns to keep ahead of inflation.
401k returns
- Thread starter Joshm
- Start date
Babagounj
Strength through joy
From the mid January's high to yesterday, I'm only down $39,000 which is just a minor amount. And since retiring 5 yrs ago , I have withdrawn at least $20K yearly to have some fun. I lived a simple lifestyle while working and now that I have more free time that life is over.
Big spender!
olroadbeech
Happy Verified UPSer
been retired almost 5 years and still haven't touched the 401k or other retirement accounts and do not plan to until we have to at age 701/2.
the pension is enough for all the bills and the social security is all gravy. so we will keep growing the 401k for the next 5 years and then just take the RMD after that.
the pension is enough for all the bills and the social security is all gravy. so we will keep growing the 401k for the next 5 years and then just take the RMD after that.
You don't have to take it out until 72 now.
Babagounj
Strength through joy
Actually after the ten dollar fee and the .251 in taxes, 20K is less than 15K. It makes for a larger tax refund check ever year. This year I upgraded my boat with the money. Had someone else do all the gritty work and install a speed propeller, so that once the weather is good I can just drop it in.
Why don't you roll your 401k over?
Babagounj
Strength through joy
Too young for taking my FRA. Still have to wait until late 2021.
Babagounj
Strength through joy
Been think of it, kind of hard to give up those small fees.
How about those $10 withdrawal fees for the rest of your life?
oldngray
nowhere special
IRA fees are probably lower than a 401k. Depends on the plan.
Tell him how low your Vanguard fees are. Plus you aren't limited to a few index funds, plus no fees on buying and sell stocks.
oldngray
nowhere special
I don't have everything in Vanguard. A lot is though. My IRA is through my bank. Low costs and extra perks. I can still buy any Vanguard funds very cheaply.
the Bright Horizon funds in the 401k mostly suck.
I just looked it up. The total US stock market has an expense ratio of .04
Up In Smoke
Well-Known Member
Yes, the bond fund is a blend of corporate and government bonds. My point was US treasuries has for decades been a safe place to park cash. The rate of return on government bonds has dropped 50% this year.
More than that. I bought a one year T bill last January and it was paying over 2.5% now it's under 1%
Package Stick
"Send it."
"The Fed lowered its target rate range by half a percentage point, to 1.00% and 1.25%. It said “the fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity.” All members of the FOMC were on board with the easing."
The economy is strong yet they cut rates? If the economy slows down just a little bit this is how hyperinflation starts. The Fed doesn't even know if the economy has slowed/is slowing and they cut interest rates (they know).
The Federal Reserve has been doing this thing called repo and reverse repo. Not to mention the 21% corporate tax rate. All of this
just fuels buybacks/dividend increases.
Repo and Reverse Repo Operations - Federal Reserve Bank of New York
Can't wait for Q1 numbers and guidance from companies. The market wants 0% rates, and with Trump they might get it. Hell, he's on Twitter saying a 50 bps cut isn't enough; "The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!"
This is a hand grenade with the pin pulled.
The economy is strong yet they cut rates? If the economy slows down just a little bit this is how hyperinflation starts. The Fed doesn't even know if the economy has slowed/is slowing and they cut interest rates (they know).
The Federal Reserve has been doing this thing called repo and reverse repo. Not to mention the 21% corporate tax rate. All of this
just fuels buybacks/dividend increases.Repo and Reverse Repo Operations - Federal Reserve Bank of New York
Can't wait for Q1 numbers and guidance from companies. The market wants 0% rates, and with Trump they might get it. Hell, he's on Twitter saying a 50 bps cut isn't enough; "The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!"
This is a hand grenade with the pin pulled.
The Driver
I drive.
I've been swinging from worries of deflation to worries to inflation to worries of stagflation. I have no idea where this is going to go, it's kind of exciting.
