Retirement in stocks and mutual funds?

[mom'sfolly]

Well put, PC.

I think we are in for hard times world wide, with financial markets falling all over the world. I also think it will get worse before it gets better.

 

[mtnhomechick]

Futures= 3 digits up........3 digits down.........AND the market hasn't even opened yet.

Could this be the Capitulation I've been waiting for?

 

[ruth]

Quote:
Can you transfer it into Money Market or CD Accounts?

I think it depends on whether you need it now or in the next few years.

We transferred ours into MM a few months ago.

We have that Vanguard 2015 acct, started in Aug 2004. Had it in a CD for a year before that and decided to put it in something that would possibly earn a bit more than a CD. Now, I'm thinking we should put it back in a CD, to "hold" till things turn around, IF they do. My DH is 55 now, so wont be too long before we need it.

Hi Cyn - first let me add my legal disclaimer that I am NOT a financial adviser and I don't play one on TV. But here's what we did. We had money sitting in an IRA, some in cash (earning zero), some in CD (earning barely more than zero), some in various stocks/bonds/mutual funds (that all seemed to be losing money). So when a great deal on a HUD home became available we took $60,000 out and paid cash for it. Rented it for 6 years for $850 month ($61,200), and then sold it for $133,000 ($73,000 profit). In my humble, personal, and non-legal opinion, much better investment than letting it sit. Of course we had to pay the 10% early withdrawal penalty but that was only $6,000. We had the deductions of a home purchase and the rental home improvements to offset that. We had to pay income tax on the distribution but we would have had to pay that anyway. The general idea on most retirement funds is that when you take it out you will be retired and in a lower income tax bracket. That will probably never apply to us because we own businesses.

Now that there will soon be many foreclosed homes on the market that the government or banks will be begging people to buy, we will take cash out again and buy another rental property because people are certainly going to need to be able to rent if they are losing their homes.

Again, not advising anyone to do what we do, but I am sharing my results. Watching stocks/bonds/mutual funds slowly decline and hoping they will someday go back up or that you don't lose all of your money just isn't the way to go. If one investment isn't making money for you, find one that will. Even something that is paying a paltry percentage or two is still losing money because it isn't keeping up with inflation and cost of living.

 

[speckledhen]

I'd love to do that, Monique, but what we have is probably not enough to buy any house around these parts. If we did remove it, we'd buy a piece of land most likely. I just hope there's close to the amt of the principal left when we go to see the guy on Friday.

 

[setter4]

I had to laugh...the manager of one of the banks we use called my DH today and asked if he could make an appointment to discuss our "portfolio" with us.
I asked my husband..."Do we still HAVE a portfolio after last week?"
I think we are down so far that we can't afford to do anything but hold on to our butts and try to ride it out!

 

[ruth]

Quote:
You might be surprised what your money can buy when all these foreclosed homes start hitting the market. And who says it has to be a home near you? We lived in Covington but bought two homes in Baton Rouge because we knew we could always rent to students or others in BR. Check out HUD's site, they list in every part of the country and list HUD, VA and USDA foreclosures. We almost bought a home in Vermont once for a vacation home. Look for upcoming deals on homes in other areas that can be bought cheap and rented out. We have seen homes on there going for as little as $10,000.

www.hud.gov

and then go to home sales - or

http://www.homesales.gov/homesales/mainAction.do

I have a feeling that in a few months to a year there will be many great deals out there.

Again, not necessarily advice just for Cyn - just letting others know that there are options to watching your investment dollars dwindle down to nothing.

 

[Ellie]

Hey, Ruth, I think you are right, this has to be the best time to buy a rental property or house than we have seen in a long, long time.

My 403B (like a 401k) for retirement has dropped, but I haven't lost anything because I haven't taken it out!! Well, I actually can't take it out because I am not old enough.

My hope is that it will rise as it has always done and that I can afford to leave it in there and not use it until it does!

 

[mtnhomechick]

Quote:
With todays shocking drop I no longer favor the idea of bailing unless a person needs money in the near future.

Hedge funds have been selling to liquidate money requested by unhappy MILLIONARE investors.

It will likely go down more ( No one has a crystal ball ).

Hopefully there will be a wild bear market bounce at some point soon. It won't go back to near where it was but unless the world is ending I can't imagine too much more.

I have now started buying into stocks............a little bit.

I might lose in the near term but feel that in a longer time horizon.......I will do well.

If anyone is taking my ideas to heart BEWARE. I need a disclaimer too.

It seems to me personally that this market is trading big time on fear and emotion.

Hopefully we are now approaching a bottom.

The last time I saw anything like this......the tech bubble.........people who invested made a fortune within a year.

Just wanted to add this since I am not a financial advisor.

Thanks,

Mary

 

[Mahonri]

I'm not a financial advisor either.

But I'm getting cash out of the bank tomorrow and putting it in a safe place (not home).

 

[mrandmrschicken]

Quietly, I sit back and wonder how my retirment account is doing. Not alot in it, but enough.
My wife and I own three homes, 2 rentals and a primary. If I was able to, I would buy more property. We fought and struggled to buy those homes when we could. We are in no danger of losing them.
The housing market where we live is strong, so is the economy.
Iceland, went down because of their lending practices, that they would not change, it was almost inevitable.
If you can, buy more land. It is the only thing they don't make any more of!
In 25 days(24)?, we have a chance to change things to a more positive note. We have the oppurtunity to make this country whole. Lets not blow it, again....
At this point in time, how am I worrying about the future? I am taking my two sons (8 and 11) to a poultry show for a guys weekend out! We are going to eat junk food and pick up chicks! Ha! That struck me as funny too!
Remember this, "Don't put all your eggs in one basket"!
Good luck to us all.