October 10th Market Plunge

[HI Bill]

I only have 50,000 in my 401(k). These stock market lows are killing me! I’m not selling or cashing anything in. I was thinking of increasing my payroll deductions to take advantage of the greater buying power. But I have to be honest, I’m scared and I really don’t have any money to lose.

Your profile says your retirement year is 2020. If that's the case, and you have no assets outside the 401(k) listed above, you can't really afford to lose anything. However, $50K won't get you far in retirement, unless you're 99. I'd bite the bullet and increase your contributions. Dollar cost averaging!

 

[lampshade]

Well, I’d like to think my Social Security and DH Social Security will help us. The mortgage is paid for and houses in my neighborhood, same style as ours, are going for 350,000 to 375,000. I’ll have a small pension and so will DH. We’re looking forward to moving to Florida and a lower cost of living area and hopefully getting part time jobs.

 

[HadEnuff]

I’m trying to put my big girl panties on and do the right thing! But I only have 50,000 in my 401(k). These stock market lows are killing me! I’m not selling or cashing anything in. I was thinking of increasing my payroll deductions to take advantage of the greater buying power. But I have to be honest, I’m scared and I really don’t have any money to lose.

stock market lows? The market has only pulled back to the level it visited last February. This is nothing. I'm not saying it's going lower, but it certainly could. Your plan for retirement needs to account for that possibility. You can't stake your future on the requirement that the equities markets only go up, without interruptions.

 

[HI Bill]

Well, I’d like to think my Social Security and DH Social Security will help us. The mortgage is paid for and houses in my neighborhood, same style as ours, are going for 350,000 to 375,000. I’ll have a small pension and so will DH. We’re looking forward to moving to Florida and a lower cost of living area and hopefully getting part time jobs.

Ah, it's great that you have other sources of income. Have you figured out how much your and your DH's SS will be, and what your expenses will be (and pension income)?

Just be careful in FL, not to buy too expensive of a house, and figure out how high the property taxes will be, because they will be high if you buy! Kidding aside, I had friends who moved to West Palm Beach, and rented for less than the property taxes would have been for the same house!

 

[lampshade]

We planned on spending the first 3 to 12 months checking out different areas. Not in a rush to buy. We have friends and family who live in Florida and are excited to show us around and discussed real estate and prices with us. Also, retiring in 2020 is a real burning desire for me. However, if I need to work a little longer then so be it. In 2020 I’ll be 62. If I have to work up to 65 I won’t be happy but I’ll do what I need to do.

 

[Free bird]

S&P 500 flat for the year. Hardly a crisis. People habe scary high expectations for the stock market. Its holloween so get your costume on & go trick or treating.

 

[Lsbcal]

Well, I’d like to think my Social Security and DH Social Security will help us. The mortgage is paid for and houses in my neighborhood, same style as ours, are going for 350,000 to 375,000. I’ll have a small pension and so will DH. We’re looking forward to moving to Florida and a lower cost of living area and hopefully getting part time jobs.

I think if you want some thoughts in this forum you should consider starting a thread. You might want it to focus on what AA is right for you and how much risk you can truly tolerate. As has been said, this is just a minor dip (so far) and you do not want to have regrets years later. I would make the post fairly brief so people will not be overwhelmed with detail.

P.S. Here is an data filled article on the history of SP500 declines:
https://awealthofcommonsense.com/2018/10/when-stocks-fell-10/

 

[Oz investor]

i am holding shares for ( mainly ) dividend returns rather than share price increase ,

obviously in tough times those dividends are liable to shrink ( or pause ) but i am dumbfounded at those who buy stocks that have no history ( or a very erratic one ) of paying dividends ( like the top level Berkshire one )

haven't they heard of inflation ( a nasty enemy of the retiree budget )

 

[NW-Bound]

... i am dumbfounded at those who buy stocks that have no history ( or a very erratic one ) of paying dividends ( like the top level Berkshire one )...

Buffett does not pay dividend on Berkshire stock because he believes he can reinvest it for more growth.

A BRK'A share price was 7100 in 1990, and 300000 today.

 

[Oz investor]

Buffett does not pay dividend on Berkshire stock because he believes he can reinvest it for more growth.

A BRK'A share price was 7100 in 1990, and 300000 today.

i didn't start investing decades ago and i predict i will need a relatively regular income for the rest of my life

now if i had a lazy $10 million in the bank earning interest my life would be simpler but more expensive ( i would be outside the medical care safety net )

want is fine for Warren and Charlie is not so attractive to me

but one question one must ask is how will that capital gain go in a high inflation era ( like say Brazil , currently )

 

[NW-Bound]

Under high inflation, stocks do not do well, but I am not aware of any data showing dividend stocks would do better.

Perhaps growth stocks with high P/E may be hurt more, but Berkshire is not one of them. In fact, its trailing P/E ratio of 10 is about half that of the S&P 500.

 

[Lakewood90712]

We planned on spending the first 3 to 12 months checking out different areas. Not in a rush to buy. We have friends and family who live in Florida and are excited to show us around and discussed real estate and prices with us. Also, retiring in 2020 is a real burning desire for me. However, if I need to work a little longer then so be it. In 2020 I’ll be 62. If I have to work up to 65 I won’t be happy but I’ll do what I need to do.

? You are not already maxing out ? . Every 401 , 403 , and 457 plan I have ever seen has a stable value fund. Park new funds in there until the real correction comes if you are afraid of the market at these levels. The markets this year have merely given up gains , not at all a correction IMHO.

In 2008 100% of my 457 was in stable value. in 2009 I moved all of it into equities when the market was in the dumper.

 

[HFWR]

S&P 500 flat for the year. Hardly a crisis. People habe scary high expectations for the stock market. Its holloween so get your costume on & go trick or treating.

I’m hoping for some of that drug-laced candy...

 

[kgtest]

I’m hoping for some of that drug-laced candy...

Uhh wait, what? Where the hell you trick or treating either the hood or the nursing home lol

 

[NW-Bound]

Cyanide-laced candy to end misery?

Oh gee, it was just a market correction. It's not that bad.

 

[Archman]

S&P 500 flat for the year. Hardly a crisis. People habe scary high expectations for the stock market. Its holloween so get your costume on & go trick or treating.

FWIW, I'm up 1.48% YTD, while the S&P is -0.56%, Dow is -0.13%, NASDAQ is +3.82 %.

 

[copyright1997reloaded]

I think if you want some thoughts in this forum you should consider starting a thread. You might want it to focus on what AA is right for you and how much risk you can truly tolerate. As has been said, this is just a minor dip (so far) and you do not want to have regrets years later. I would make the post fairly brief so people will not be overwhelmed with detail.

P.S. Here is an data filled article on the history of SP500 declines:
https://awealthofcommonsense.com/2018/10/when-stocks-fell-10/

Ha ha, how about that one time they fell 90%? That's the repeat I would like to avoid.

 

[Lakewood90712]

Looks like the Producers at CNBC have put Cramer back on "Meltdown Watch" in case he goes off the deep end again.

That 2008 Video is somewhat entertaining. Cramer et al really believe the destiny of the human race revolves around wall street.

 

[ExFlyBoy5]

Looks like the Producers at CNBC have put Cramer back on "Meltdown Watch" in case he goes off the deep end again.

I have to admit, it's ENTERTAINING to watch him lose his ever loving mind while talking to David Faber who is about as mellow as they come on CNBC. I think it drivers Cramer nuts.