How bad a hit did you take this week ?

dtbach said:
If you don't play, you can't win! Hope inflation doesn't eat you alive in 10 years.
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Now, let's think about that statement. We're guaranteed 4% a year on the IRAs, which has been the target earnings rate in my planning scenarios. Because we are debt-free and able to live below our means, we can live on pensions OR IRA/SPIA income OR social security. Pensions and social security have an inflation factor.

We both have retiree health insurance and LTC. I can't say all the bases are covered; however, multiple versions of the financial plan tell me we're OK. I've even figured in a surviving spouse in the scenarios.

I'm not bragging at all... I took a hard hit in 2008 and it took patience and time to stabilize that part of our plan. I'll never go through that again.

The difference now is I can sleep at night....and that, my friend, IS priceless.
 
East Texas said:
Now, let's think about that statement. We're guaranteed 4% a year on the IRAs, which has been the target earnings rate in my planning scenarios. Because we are debt-free and able to live below our means, we can live on pensions OR IRA/SPIA income OR social security. Pensions and social security have an inflation factor.

We both have retiree health insurance and LTC. I can't say all the bases are covered; however, multiple versions of the financial plan tell me we're OK. I've even figured in a surviving spouse in the scenarios.

I'm not bragging at all... I took a hard hit in 2008 and it took patience and time to stabilize that part of our plan. I'll never go through that again.

The difference now is I can sleep at night....and that, my friend, IS priceless.
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Perhaps I missed it somewhere but how is it that you've got a 4% guaranteed return and a 2% bonus (so 6% return total)? Sounds outstanding
 
I have a conservative portfolio and the portion invested in stocks and equity funds are for very long term, so am not too bothered to accurately count the losses now. On an estimate, I think it is around 3% loss of total portfolio.
 
JBmadera said:
Perhaps I missed it somewhere but how is it that you've got a 4% guaranteed return and a 2% bonus (so 6% return total)? Sounds outstanding
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At the time we moved our 401k funds over to a USAA Flexible Savings Annuity IRA we got a 2% bonus on the rollover amount and have a guaranteed 4% annual earnings compounded daily. We missed the 3% bonus and the higher interest rates by a few months (darn it!); but, are glad not to have to worry about it any more. (ETA: The first year was even better that 6% (2% bonus and 4% annual earnings) since the bonus was applied up front and got the full annual benefit of the compounded interest.)

That being said, the bonus and the annual rate have fallen since then. Bummer. (ETA: did not impact us - only new folks).
 
I have not calculated it. The last time I looked at the exact amount was in May.

All of the "go away in May" talk.... got me a little worried (since I was getting ready to FIRE I was a little sensitive to such talk) so I took the opportunity to rebalance at that time to capture some of my gains! Glad I did now... But back then... when the market marched up... I felt a little regret not letting it ride a bit longer.

But I roughly estimate that we are down... ooooooh, maybe about 2% to 2.5% for the year.
 
I'm back to where I was about a year ago, minus contributions,

Ni modo, así es la vida.
TJ
 
My biggest holding is a TIPS fund. It's been doing just fine in spite of the downgrade.
OTOH, for the first time in my life I think there is a non-zero chance that the US could actually default on those bonds.
 
Independent said:
My biggest holding is a TIPS fund. It's been doing just fine in spite of the downgrade.
OTOH, for the first time in my life I think there is a non-zero chance that the US could actually default on those bonds.
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Don't even consider it. It will not happen. There will be no default by any nation with a printing press.

I have no idea where th estock market is going, or what interest rates will be, but no default is a mortal lock.

Ha
 
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Independent said:
My biggest holding is a TIPS fund. It's been doing just fine in spite of the downgrade.
OTOH, for the first time in my life I think there is a non-zero chance that the US could actually default on those bonds.
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My tip etf has done reasonably well also, however, if interest rates rise due to the downgrade and with potential for additional downgrades, tips could get wacked.
 
I took a big hit! Oh, wait, you were talking about the market, not a bong...
 
From the peak I'm down 12% and bought more in a rebalance yesterday. But the gains before the peak were twice that in 12 months and I had just rebalanced in July taking some off the table. You have to have a strong stomack but riding through and rebalancing at high points and low points sure gives it a kick! I don't think it's over but you have to have faith.
 
LOL! said:
For the first time in my life, I lost a 6-figure amount in just one day. I'm feeling proud of that accomplishment. :)
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Yea... I made that club also.... and to think that it took a month to do it during the 2008 crisis...

Hope to cut at least half of that loss by the end of the month....
 
Beryl said:
Wouldn't this help the bond market?
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True, but the bond market is not the economy. If it were, we wouldn't have 10% unemployment after 3 years of rock bottom interest rates and strong bond prices.

Ha
 
East Texas said:
At the time we moved our 401k funds over to a USAA Flexible Savings Annuity IRA we got a 2% bonus on the rollover amount and have a guaranteed 4% annual earnings compounded daily. We missed the 3% bonus and the higher interest rates by a few months (darn it!); but, are glad not to have to worry about it any more. (ETA: The first year was even better that 6% (2% bonus and 4% annual earnings) since the bonus was applied up front and got the full annual benefit of the compounded interest.)

That being said, the bonus and the annual rate have fallen since then. Bummer. (ETA: did not impact us - only new folks).
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Is the 2% bonus only for the first year? So 6% for the first full year and 4% thereafter?
 
pb4uski said:
Is the 2% bonus only for the first year? So 6% for the first full year and 4% thereafter?
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Kind of. When we first signed up, the bonus was just for the initial deposit. Right after that the program allowed the bonus to be applied to all deposits made within the first year (doing this from memory). Then the rates fell and the bonus amount was reduced. The rates should improve when the Fed finally... well.. that's another story.

I digressed. If you do the pure math, the first year is a bit more than 6% because the bonus is applied the day of the deposit. Let's say I moved $500,000 from my 401K over to the Flexible Retirement Savings Annuity. I immediately got $10,000 for the bonus (free money). My starting number is now $510,000. The 4% starts on that number. Since the annual rate is compounded daily, the bonus starts getting earnings right away.

The second and subsequent years earn the 4%. Again, it's compounded daily. Sweet. :dance:
 
I am down about 8% from the recent peak - with about a 55/45 AA. Not fun! Staying with the plan - have about 2 years cash. I'm not to worried, but, hate to see the net worth fall. Gotta play to win in the long term.
 
At present, I am off 4.5% on a 79% stock portfolio, from the high-water mark before the start of this mini-crash through today's close. The other 21% is CDs.

Ha
 
After today, I'm up a measly 2% for the year in my personal trading account; down 3% in my 401k for the year...

I got tons (75%) in mm, cd & such.

Peak to now, down 6% in personal & 6.3% in 401k...I've been buying on the way down over the week...including adding to my S&P holdings at end of day yesterday...gave me a nice bump today, hope it hangs in there.
 
Down 4.9% yesterday, probably recovered more than half of that today.

My retirement plan was to rebalance every 12 to 18 months if my AA shifted 5%. I am now off by over 5% in my AA and I only rebalanced a few months ago. Not sure if I should go with time or % bands for rebalancing, this never happened so fast to me.

Any ideas if it is better to rebalance on % changes regardless of the duration?
 
yakers said:
Down 4.9% yesterday, probably recovered more than half of that today.

My retirement plan was to rebalance every 12 to 18 months if my AA shifted 5%. I am now off by over 5% in my AA and I only rebalanced a few months ago. Not sure if I should go with time or % bands for rebalancing, this never happened so fast to me.

Any ideas if it is better to rebalance on % changes regardless of the duration?
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Hey neighbor!

I would re-balance with the correction happening. I look at the probability of it continuing vs. re-bounding a bit...I give it a 5% downside vs. 20% upside...
 
I could have bought a Dodge Viper (used) with the drop in valuation of my IRA. However, if you do not sell, you do not lose. And the dividends still keep coming.

I do not know what good an interest rate of zero will do. The banks still will not lend money.

Fasten your seat belts. There is more to come.
 
Ed_The_Gypsy said:
I do not know what good an interest rate of zero will do. The banks still will not lend money.
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Good point.
 
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