1. You have chosen to ignore posts from Maldenlady. Show Maldenlady's posts

    My IRA - RIP!

    Got a question for y'all...

    So, OK, with the downturn(s), I've lost a lot of money...I keep being told not to panic, "stay the course", keep it in there the economy will turn around...

    Do y'all buy that?  Are you sticking with your IRA's?  This time around, a big difference seems to be the degree to which international markets are effecting what's going on here in the US...

    Panic, and take it out, or hold my breath and pray??


     
  2. You have chosen to ignore posts from RedFishBlueFish. Show RedFishBlueFish's posts

    Re: My IRA - RIP!

    If you take your money out when it's at the bottom, you have zero chance of making any of it back. People who kept their money in the last time the market went down made it back, provided they didn't do something rash (like jump out).

    Historically, the market always comes back over the long haul. That's why the experts say the best thing to do is diversify and put your money in more "guaranteed" accounts as you get closer to retirement age, even if the returns aren't as high.

    I'm young (under 40). I'm staying the course.
     
  3. You have chosen to ignore posts from Maldenlady. Show Maldenlady's posts

    Re: My IRA - RIP!

    Thanks, RFBF!  I believe I am pretty diversified...but dang, it's still disconserting...I guess i'll hold my breath...

    Thanks again!
     
  4. You have chosen to ignore posts from thirtysomething. Show thirtysomething's posts

    Re: My IRA - RIP!

    Maldenlady, I manage my own portfolio, investing in a dozen well known blue-chip stocks. I have confidence in the profitability of the companies I own, in the quality of their balance sheets, in the strength of their brands, and in their potential for growth (especially in emerging markets). My portfolio is down over the last few weeks, along with the rest of the market, but that doesn't change the fact that these businesses will be making a heck of a lot of money over the next 10, 20, 30, 50 years... (I'm a little older than my login suggests, but still hope to live that long.)

    I'm actually not diversified at this point. I have a little cash on the sidelines, but finished selling my bonds last week. I would prefer to be diversified, but cannot justify owning a long-term investment that guarantees it will return less than 1% more than inflation. Last week I added two new positions, bumping my stock allocation from 80% to 90%. I have complete confidence that the stocks I have chosen will return more than bonds over the next 10 years (it helps that their average dividend yield exceeds current bond yields).

    I don't see this as a great buying opportunity yet, and the next movement of the market could just as easily be down as up. Moreover, I understand that it is harder to have confidence in an index or mutual fund than in a specific carefully-researched investment. But interest rates are so low right now that buying a bond is essentially locking in a loss for the lifetime of the bond. That might be okay if you already have more than you will ever need. It might be necessary to limit risk if you need the money in the next ten years. But if you are investing with a 20-year horizon, then you have to take the long view.

    Stick with your investments -- and treat any substantial decline as a buying opportunity. The stock market is the ONLY market I know in which shoppers complain about an across-the-board 20%-off sale!
     
  5. You have chosen to ignore posts from ccfaulk. Show ccfaulk's posts

    Re: My IRA - RIP!

    I rolled my IRA (not my company 401K) into an IRA that invests in different reits. You have to have a certain net worth but nothing to crazy. (working man with home).
    It pays dividends on the huge office park and developments they buy or build. They (in the USA) have to pay out 90% to the shareholders. This was one way to diversify my portfolio. The one way they can get you if the shares you buy go down. I invested in 4 and 3 were around 7% this year and one was 4%.

    Financial advisers are so worth the fees you pay. most are 300 but once you start getting tricky with more assets it does go up.
     

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