REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Nothing at all wrong with that approach if you can pull it off.
Are 25-35 year olds feeling discouraged yet?
- Thread starter soupcxan
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W2R
Moderator Emeritus
I completely agree concerning the returns, for what it's worth. (That and $1.50 will buy you a cup of coffee).
Actually I don't think this is a pessimistic outlook or even the slightest bit of market panic. I have been thinking this would be the case for over 5 years.* I am hoping for average returns equaling inflation + 2%, and my financial plan takes this into account.
To be clear, I haven't given up on the stock market but simply don't expect 8%+ returns on average. If we get them, then in my 80's I'll be like Scrooge McDuck - - sitting on top of a huge pile of money, shouting "Mine, mine, it's all MINE!"
* If anyone is interested, I base my thinking on a subjective interpretation of demographics and the effects of the leading edge of the baby boom, right or wrong.
ziggy29
Moderator Emeritus
Well, heck -- you could get CPI + 2.5% by buying long-term TIPS, hold them to maturity and walk away from the stock market. The only problem is that they don't throw off enough current income.
Schwab currently shows the new-issue January 2029s priced to yield 2.58%.
W2R
Moderator Emeritus
Well, I don't like to put all my eggs in one basket, y'know? There are lots of investments that give off more than CPI+2% right at this moment. Doesn't mean that I could toss my money into any one of them and then go and snooze (at least, not IMO). Although I must admit that UncleMick's strategy (put it all in a target fund and forgetaboutit) is very appealing...
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Discouraged? Well, yes and no. The market stinks, but at least I didn't have a hug amount of savings invested! I was really annoyed when I did my taxes this year and was told that he state of California will give me my return basically when the budget is fully allocated - meaning never. If that is the case, of course, I do not see why those that owe the state (i.e., smart people) should have to pay.
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CCdaCE
Full time employment: Posting here.
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I'd make damn sure I never had a return coming, ever again.
-CC
-CC
discouraged.
I look at my investments twice per year. I also try to block out the noise from the media. I am 32 and have lots of years of work and dca ahead of me. 2008 did hurt. I lost enough to buy a new Lexus and take a month trip to Europe. I am just staying the course. I stayed the course during the dot-com bubble bursting and was rewarded nicely for it. I truly feel that in 4 or 5 years I will look at my accounts and smile.
I look at my investments twice per year. I also try to block out the noise from the media. I am 32 and have lots of years of work and dca ahead of me. 2008 did hurt. I lost enough to buy a new Lexus and take a month trip to Europe. I am just staying the course. I stayed the course during the dot-com bubble bursting and was rewarded nicely for it. I truly feel that in 4 or 5 years I will look at my accounts and smile.
citrine
Full time employment: Posting here.
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Not at all discouraged! Worse case scenario....move to Spain and teach English or move back to India and work in the family real estate business!
I plan on enjoying life, living simply, and not stressing myself out....there is ALWAYS an option!
I plan on enjoying life, living simply, and not stressing myself out....there is ALWAYS an option!
Jay_Gatsby
Thinks s/he gets paid by the post
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Good strategy, though I'd review your investments once a month rather than twice a year (unless you're talking about just a 401(k) as your investments, in which case, there's no need to check it except to re-balance). On a personal note, I didn't fear the recent downturn in the stock market. While I've lost even more than you, I put some money into a few individual stocks and mutual funds back in March. The stocks have DOUBLED in that time, while the mutual funds are up 25%. As Buffett has said "be fearful when others are greedy and greedy when others are fearful."
I was about 80% equities last year when the market seized. Over the past 10 months I have put more money into the market than any other year in my life (age 33). Fortunately I've had more money to invest this year. While some people view the lower value of their portfolios as a bad thing, I view the cheaper prices I'm buying stocks at as a good thing.
The last 10 months have been the best investment time of my life so far. Bear markets are bad for those NEAR retirement, not those 21 years from retirement ( I hope). Think long term and ignore the near term!
The last 10 months have been the best investment time of my life so far. Bear markets are bad for those NEAR retirement, not those 21 years from retirement ( I hope). Think long term and ignore the near term!
Hobo
Recycles dryer sheets
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I am retired for 9 years. The best thing I ever did was to sell my "big house" and all my equities 5 years before I retired. I put the money in "revenue municipal bonds" - good interest, tax free, guaranteed by municipal taxpayers, and good for 30 years of constant income every month.
Don't wait until you are ready to retire to adjust your portfolio from investment to income yielding. Even a small downturn in the economy can bite if you wait until the last minute to adjust your portfolio for retirement.
