Up In Smoke
Well-Known Member
You must be a dollar-cost averaging investor (buy and hold). If your not selling and insuring your investments you're in no position to complain. The market doesn't need to go up to make money.
Time to bump up that 401k
I'll complain all I want. It was doing really good till Biden got in.
Up In Smoke
Well-Known Member
The market is cyclical. The market returns in 2021 were just short of 30%. If you failed to capture profit before the fed changed monetary policies by raising rates and reducing their bond buying, then that's on you.
ManInBrown
Well-Known Member
Do you think Joe Biden is doing a good job? Satisfactory and leading the country in the right direction in your opinion? Serious question, I’d love to know.
Up In Smoke
Well-Known Member
I think the president, no matter who or what party has very little to do with the stock market or the economy. The US printed money like drunken sailors since 2008 and finally the economy (according to the Fed) is strong enough for them to stop. The US reduced it's deficit by more than 300 billion in 2021 and is on target to reduce by another 1.7 trillion this year. To me, the government getting out of the way of capitalism is a net positive. Every politician will say or do whatever it takes to stay in office and the media will bend and twist the narrative to their audience. China and it's companies have the smallest footprint in our economy since the early 2000's and the dollar is at 25 year highs (good for international trade). We've brokered a global minimum tax rate, which has allowed American companies to move money out of foreign banks and back into the US. Joe Biden has done a job. Not good, not bad just his job.
Over70irregs
Well-Known Member
Good post. Study and take zoom out assessments people. Stop watching slanted news networks.
Up In Smoke
Well-Known Member
The Fed is doing a lot of good work. It may be 3-4 years too late and 30% too slow, but it's time to quit holding the US economy together with our children's tax dollars. Recessions aren't all bad and short term inflation isn't either. By raising rates, the Fed gives investors large and small another lane in which to plan their financial goals. By raising rates over the S&P average dividend rate, individuals and commercial investors can get back to a balanced investment portfolio. For far to long, low rates forced everyone to go all in regards to the market. I'd be willing to venture most people moved from a 60/30/10 ratio closer to a 80/10/10 one. When investors move large amounts of money from bonds and cash into equities, the result is inflated valuations not increased value. PE ratios ballooned to unsustainable levels. Companies were cash heavy and buying back stock only drove the valuations higher. If the Fed comes out this week and announces a .75 point increase to the short term rate and gives a forward guidance of one or two more hikes, the market will respond to the positive. Valuations have retreated to near historical norms and any news of Treasury Department's satisfaction with there plan of a soft landing, we could see a 4500 S&P by year end.
ThePackageDeli
Well-Known Member
The pension is corporate welfare basically. Which of these scenarios sounds better to you?...
Work 30+ years for a pension that pays you less than $100k/yr after age 60.
-or-
Work less than 30 years, max out your retirement investing, and have multiple million dollars after age 60 where the interest alone earns you $100k+ per year.
...The pension is for lazy and irresponsible people who don't take control of their financial future. The pension is a nice perk, but it's just a cherry on top of what you could be getting in retirement. Believe that!
Be nice to see bond yields back in the 5% range.
Up In Smoke
Well-Known Member
Three legged stool. Your pension, retirement savings and SS. My pension will allow me to retire at 57 (god willing) and not touch my retirement savings for the foreseeable future. A pension is an enhancement to your your wage package and not welfare. I've already purchased a large policy to ensure my pension plan will live on years after I'm gone.
Over70irregs
Well-Known Member
Pension is Proof of Work. There is auditable inputs put into a fund on your behalf according to mathematical hours based on time/energy. Welfare covers all according to pre-requisites without time served for most part. Pensions are an incentive to keep loyal workers who complete a map/adventure journey.
ManInBrown
Well-Known Member
Bingo. It’s a cherry on top. You don’t know how many drivers I’ve spoken tell put zilch in the 401k. “Why do I need a 401k, we get a pension” I just shake my head.
Feeder665
Go big or go home!
I too hope my pension allows me to retire at or near 57(in 15 years). I’ve been investing 15% into my 401(k) since I started at UPS 17 years ago. I’ll have 32 years of service by then.
My question to you is can you clarify / elaborate on this policy you purchased to ensure your pension will live on? Is this through ups? Outside? Please elaborate. Thanks!
UpstateNYUPSer(Ret)
Well-Known Member
There is no such insurance policy. What he may be referring to is a strategy employed by married retirees where they choose to take the full pension amount and buy a 30 year term policy for at least $500K to ensure that their spouse is taken care of (financially)-----the neighbor will be more than happy to take care of her other needs.
Up In Smoke
Well-Known Member
That's what I did. Prior to my 50th birthday I purchased a 30 year term policy. If I outlive that policy mama's on her own.There is no such insurance policy. What he may be referring to is a strategy employed by married retirees where they choose to take the full pension amount and buy a 30 year term policy for at least $500K to ensure that their spouse is taken care of (financially)-----the neighbor will be more than happy to take care of her other needs.
Are you going to take out any survivor benefits?
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Up In Smoke
Well-Known Member
No. My wife has out earned me nearly her entire career. Her retirement account is larger than mine and she will continue to run our small business after I've retired. I'm four plus years older and the body is giving out. I will work as I have, doing the books until we sell. Health insurance is not a concern at this point (fingers crossed).
Did you at least look into maybe putting a small percentage of your pension into survivor benefit? I only ask this because I know a few people who not do that and they unfortunately passed away quicker than they thought they would
Thebrownblob
Well-Known Member
I will probably get hit by a bus The day I retire
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