Thread: Stocks

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  1. #1
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    Stocks

    I probably made a mistake, but I moved all of our stock investments into a money market today. I left the bond funds for now. I know that bond funds aren’t going to pay anything just as a money market, but there not going to lose. I’m too old for this stress.

    I feel that there are too many headwinds in the near future to take the risk. It seems like a tweet can send the market sliding in minutes.

  2. Fishing is a Passion
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    #2
    Funny you say, I just got off the phone with my money manager and he told me to stay still. He saw this coming , so two months ago we moved from 85% stock to 60%. He was correct and at least I did not take a complete bath. He also said that if it goes down again we need to go straight back up to 85%. He has been pretty good at this game for a long time. Good luck. I am also near retirement and hope things move in the correct direction soon. He also said that the GM move has been known for a while and this has contributed to the descent of the market
    2002 Pro Craft 200 Super Pro- 2005 200 Mercury Optimax, Retired
    Empty Nester- Proud Grandfather 5-30-2014-Boy-Aiden, 8-2-2017-Boy-Calen

  3. Member
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    #3
    I’m 75 years old, so I don’t want to take a chance on a 20% drop. We have enough saved, so I thought why take the chance.

    The FANG stocks, tarrif’s, Fed and constant tweeting is adding too much volatility to the markets.

    The one thing that I forgot about was the end of the year dividends. I’m not sure how they work?

  4. Banned
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    #4
    I just about have a heart attack every day the market drops substantially. And I don't work my accounts like I did 20 years ago. But after the 2008 bloodbath, the market returned to record levels.

    My wife is starting to have to make RMD's at 70 1/2. Thankfully, her accounts are minor compared to mine. I have 2 1/2 years before I have to make RMDs, and hopefully things will have moderated by then in stocks and equities. I'd hate to have to draw substantial money yearly and pay taxes when the market's down so low. I've not been touching my IRA rollovers in recent years at all.

  5. Member
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    #5
    Quote Originally Posted by Bamaman View Post
    I just about have a heart attack every day the market drops substantially. And I don't work my accounts like I did 20 years ago. But after the 2008 bloodbath, the market returned to record levels.

    My wife is starting to have to make RMD's at 70 1/2. Thankfully, her accounts are minor compared to mine. I have 2 1/2 years before I have to make RMDs, and hopefully things will have moderated by then in stocks and equities. I'd hate to have to draw substantial money yearly and pay taxes when the market's down so low. I've not been touching my IRA rollovers in recent years at all.
    If your RMD’s are substantial your SS will get taxed up to 85%. Wisconsin does not tax SS, but the Fed does, plus they both tax pensions.

  6. Member
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    #6
    Quote Originally Posted by Bassin08 View Post
    I’m 75 years old, so I don’t want to take a chance on a 20% drop. We have enough saved, so I thought why take the chance.

    The FANG stocks, tarrif’s, Fed and constant tweeting is adding too much volatility to the markets.

    The one thing that I forgot about was the end of the year dividends. I’m not sure how they work?
    Not feeling to wise right now, but Friday and the weekend of uncontrolled tweeting is not here yet.

  7. Member
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    #7
    3rd day in a row of big gains in stocks :) I have to empathize given the ups and downs from day-to-day and week-to-week lately and consider your age Bassin.

    I'm half your age and a "Boglehead" (broad based indexing over individual stocks, etc.) so staying the course is my daily/weekly/monthly mantra.

    It's always interesting as well to take a step back at a world view (Brexit Turmoil in the UK coming to a head, new President elect in Brazil and how his agribusiness pro philosophies may impact the global economy as well as the rain forest, the tariff ("Cold") war going on with China, the Fed, etc. AND THEN looking at how those consumers in my local market are making good incomes so they're buying 1/4 acre lots of land for over $200k to build $500 homes on with only 20% down.

    At some point I hope to have the targeted net worth AND THEN THE COURAGE NEEDED that no matter what the market is doing AT THE TIME to "pull the pin" and go straight conservative because that was the plan all along.

    Hoping you are where you planned to be and you're doing this conservative chess move because it's part of your plan and not simply fear of the current stability or lacktherof!

    God Bless!

  8. Member
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    #8
    I’m a bit younger at 49 and have been slowly buying international dividend etfs to fund the RMD from my inherited IRA. These have been beat down a lot this year so some are yielding in mid 4 percent. I’m mixing in domestic dividend growth etfs VYM and VIG. I’m about 24 percent in equities, 30 percent cash and 46 percent in individual corporate bonds. The account was not covering the RMD with the dividends and income so I have had to start building it. Not easy to generate safe income to cover RMDs right now.

  9. Member
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    #9
    I worried about loss when I was I the market, now I worry about missed gains while I’m not in the market. I feel like a ping pong ball.
    Last edited by Bassin08; 11-29-2018 at 01:04 PM.

  10. Member
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    #10
    Bassin...Do you STILL NEED the gains at your age?

  11. Member
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    #11
    No I don’t. Actually I have just been reinvesting them. I’ve been retired 13 years and have not spent any of our IRA money. My wife and I are not big spenders, or travelers.

    I just want to put it away and preserve the value in relationship to inflation.

  12. Member
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    #12
    Ahhh understand! Then moving your money to conservative investments was the right move if that's what you wanted. No need to WORRY about missed gains. Simply control what you can and spend the rest of the time enjoying life on your terms! Best to you and your wife!

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    #13
    I’m starting to feel pretty dumb. Dow futures up 400+ points. I think I left a lot of money on the table.

  14. Member
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    #14
    Quote Originally Posted by Bassin08 View Post
    I’m starting to feel pretty dumb. Dow futures up 400+ points. I think I left a lot of money on the table.
    In the long term markets tend to go up. But if you are older and have to deal with the short term then the long term becomes less relevant. Its a very volatile time so you do what you have to do based on age and risk tolerance.

  15. Member
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    #15
    Quote Originally Posted by Bassin08 View Post
    I probably made a mistake, but I moved all of our stock investments into a money market today. I left the bond funds for now. I know that bond funds aren’t going to pay anything just as a money market, but there not going to lose. I’m too old for this stress.

    I feel that there are too many headwinds in the near future to take the risk. It seems like a tweet can send the market sliding in minutes.
    Starting to get the itch again. It seems that some of the headwinds have been removed, possible deal with China is getting closer, the Fed has backed off, Bexit has maybe kicked down the road. I have a large amount parked in American Funds money market account. Anyone starting to move some back into the stock marker via mutual funds. Given my age (75)good or bad decision?

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    #16
    Delete duplicate.
    Last edited by Bassin08; 01-19-2019 at 03:39 PM. Reason: Duplicate

  17. Member
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    #17
    Quote Originally Posted by Bassin08 View Post
    Starting to get the itch again. It seems that some of the headwinds have been removed, possible deal with China is getting closer, the Fed has backed off, Bexit has maybe kicked down the road. I have a large amount parked in American Funds money market account. Anyone starting to move some back into the stock marker via mutual funds. Given my age (75)good or bad decision?
    I made purchases in November and December but haven't been buying after it has run back up.

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    #18
    I'd recommend against a money market. Do laddered CDs, you'll turn more interest and it's still accessible in phases.

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    #19
    Quote Originally Posted by TampaJim View Post
    I'd recommend against a money market. Do laddered CDs, you'll turn more interest and it's still accessible in phases.
    This is American Funds money market account. You can move out of mutual funds into this and then back into mutual funds when you want at no charge. It is a safe haven for real volatile markets.

    I did ladder six and twelve month CD’s with part of my IRA and Brokerage account.

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    #20
    Quote Originally Posted by Bassin08 View Post
    This is American Funds money market account. You can move out of mutual funds into this and then back into mutual funds when you want at no charge. It is a safe haven for real volatile markets.
    What's the interest rate on the MM account?

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