Stock Market is the bottom in?

[roymunson]

Jack

My portfolio will likely never see a bond but in all honesty my wife and I do not even need my 401k to retire if I wait until age 60.

This...

I realistically have 20 years of work and net worth growth I can work on until I would "retire early" at 55. Hopefully I don't need that 401k for anything other than chain saw fuel.

A little forethought goes a long way.

 

[Mortenson]

I'm not saving X amount of dollars, just saving to build up a war chest for the next land purchase. I'm like Yoder, terrible at picking stocks. Last year's IRA contribution is in the pooper. Doubt I get those losses back any decade soon. Should've just taken that money and traded for a new tillage tool.

 

[jsasker007]

The government is basically the working mans pimp. We go out and turn tricks so that the gov can take 1/3. If we don't turn over that 33% we get to go to jail. Thanks to horseshit government management we will soon be paying more, probably much more. Retirement is just a pipe dream for many. Now get back to work, your pimp needs your hard earned money.

 

[Bill]

Jack

My portfolio will likely never see a bond but in all honesty my wife and I do not even need my 401k to retire if I wait until age 60.

I had some muni bonds that were paying 5% that helped me not eat the nest egg back in the 08 debacle. They’ve all since refinanced at lower interest and paid me back early. It was nice while it lasted.

 

[yoderjac]

Jack

My portfolio will likely never see a bond but in all honesty my wife and I do not even need my 401k to retire if I wait until age 60.

You are fortunate, like me, to have a good pension. It really helps when the nest egg is a gap filler between recurring income streams and spending needs/desires. My approach of keeping 4 years in cash and the rest in the market may not be viable for many. Because of pension and other income streams, the amount of money needed to cover 4 years is a much smaller portion of my overall portfolio than for folks who are in a different situation.

There are many folks that only have social security as an income stream and that doesn't cover a lot these days.

Thanks,

Jack

 

[b116757]

The government is basically the working mans pimp. We go out and turn tricks so that the gov can take 1/3. If we don't turn over that 33% we get to go to jail. Thanks to horseshit government management we will soon be paying more, probably much more. Retirement is just a pipe dream for many. Now get back to work, your pimp needs your hard earned money.

Yes back to salt mines for me

 

[S.T.Fanatic]

If you guys aren't averaging 10+% you need to fire your broker (if you have one) I do not. Managing retirement funds is easy and i sure as hell aren't going to pay someone to take my money. 10% of 1 mill is 100K. That is not unreasonable to expect by any means. Now if you have a broker and they are taking 4% then you are going to have to make a higher %. Our 30 year average is well over 10%. It may not be that every year but... If it is less for a few years you will dip into it a bit more. when it returns or goes higher you will make more than 100K. It all depends what the market does in the years after you retire. The more the better but as mentioned by several on here you don't need 100k to live off of. And we havent taken our wives retirement funds into account.

 

[S.T.Fanatic]

And, there are a lot of people that get board and get a run of the mill part time job. A ton of "retired" people never actually fully retire whether they need the money or not.

 

[b116757]

And, there are a lot of people that get board and get a run of the mill part time job. A ton of "retired" people never actually fully retire whether they need the money or not.

I could see this being true. I’ve got the farm to putter around with and maybe do a little contracting on the side if I get really board. I could pretty easily go to work for one of our vendors as tech support just answering technical questions whenever the cell phone ring’s. I could do this from anywhere even the farm. I know a couple other retired gentleman in my field that have done this for something to do.

 

[Angus 1895]

If u don’t spend it


U don’t need 2 make it

Words from a very wealthy dairyman

 

[rocksnstumps]

If you guys aren't averaging 10+% you need to fire your broker (if you have one) I do not. Managing retirement funds is easy and i sure as hell aren't going to pay someone to take my money. 10% of 1 mill is 100K. That is not unreasonable to expect by any means. Now if you have a broker and they are taking 4% then you are going to have to make a higher %. Our 30 year average is well over 10%. It may not be that every year but... If it is less for a few years you will dip into it a bit more. when it returns or goes higher you will make more than 100K. It all depends what the market does in the years after you retire. The more the better but as mentioned by several on here you don't need 100k to live off of. And we havent taken our wives retirement funds into account.

Averages dont mean jack. Look up "sequence of return risks" and get back to me on your 10% average. In a nutshell, if returns are really bad early but later are really great and say over 10 yrs average 10% that is meaningless if you go broke before the great years finally show up. Especially true if you are trying to live off your investments and draw down funds every year.

For some with other income, you can weather the bad yrs. As always YMMV

 

[Bill]

If u don’t spend it


U don’t need 2 make it

Words from a very wealthy dairyman

I've been beating this and the principal of compound interest into my sons head for years. He was very lucky and his Grandfathers best friend left him a nice chunk. That was 4 years ago, in 3 more years I hope to prove to him that money will indeed double every 7 if you don't touch it. It is currently on tract to double at the 7 mark.

 

[S.T.Fanatic]

Averages dont mean jack. Look up "sequence of return risks" and get back to me on your 10% average. In a nutshell, if returns are really bad early but later are really great and say over 10 yrs average 10% that is meaningless if you go broke before the great years finally show up. Especially true if you are trying to live off your investments and draw down funds every year.

For some with other income, you can weather the bad yrs. As always YMMV

If is just that. And yes individual results will vary greatly.


Sent from my iPhone using Tapatalk

 

[yoderjac]

Averages dont mean jack. Look up "sequence of return risks" and get back to me on your 10% average. In a nutshell, if returns are really bad early but later are really great and say over 10 yrs average 10% that is meaningless if you go broke before the great years finally show up. Especially true if you are trying to live off your investments and draw down funds every year.

For some with other income, you can weather the bad yrs. As always YMMV

Averages are very important part of planning, but not sufficient in my opinion. That is one reason I tell young folks that starting early and dollar cost averaging into the broad market is a great long-term strategy. If you dollar cost average over many years on the way in and dollar cost average on the way out, you smooth the spikes. There are also other ways to smooth things out. I described my strategy for withdraw on a previous post. Not everyone is in a position to do this, but if you can keep 4 years in cash and still have enough in the market to produce the long-term returns you need, you have a high chance of weathering an early down turn. Historically, the market rebounds in to positive returns in 3-4 years. By eating from the cash bucket for those first few years if the market drops and from the market if it goes up, you can mitigate, to a large degree, the risk of the market going south immediately after retirement.

It is certainly not a s simple as some assert. There are all kinds of factors that come into play and I don't find any of it straight forward. The further we project into the future, the less accurate we are.

 

[yoderjac]

I've been beating this and the principal of compound interest into my sons head for years. He was very lucky and his Grandfathers best friend left him a nice chunk. That was 4 years ago, in 3 more years I hope to prove to him that money will indeed double every 7 if you don't touch it. It is currently on tract to double at the 7 mark.

I think the kids of today are really struggling with this. They all post their best faces on social media. They all think they should have what they see other posting. Delayed gratification is a completely foreign concept to most.

 

[ghilliehunter]

I wanna make a trucker themed response to this, but I can't come up with a way to say it without running head first into the ass, gas, or grass joke.

Nobody rides for free!

 

[jsasker007]

Have not heard much about anyone here buying stocks for the dividends. Some lure you to buy because they pay a good dividend but the stock doesn't do to well so you slowly go backwards. Some are a solid stock that also pays dividends. I'm looking hard at IBM and AT&T. Right now I have both and will probably increase shares in both. INTC(intel) is the other sleeping giant that has my attention.

 

[Angus 1895]

i Ike dividend stocks!

ZIM,ET,RGR,MCD,RDSA , RQI,PBCT are some I have

 

[Apple Junkie]

Have not heard much about anyone here buying stocks for the dividends. Some lure you to buy because they pay a good dividend but the stock doesn't do to well so you slowly go backwards. Some are a solid stock that also pays dividends. I'm looking hard at IBM and AT&T. Right now I have both and will probably increase shares in both. INTC(intel) is the other sleeping giant that has my attention.

Something to think about is the buying a fund that has a basket of dividend paying stocks. One such fund is the Vanguard Dividend Growth Fund (VDIGX). This is an actively managed fund, as opposed to an index fund, so the managers are more selective in what they invest in. If you go to the Vanguard site and drill down, you can see what stocks the fund is invested in, and what in what percentages. There are a lot of ways to skin a cat, this is just one.

 

[SD51555]

Have not heard much about anyone here buying stocks for the dividends. Some lure you to buy because they pay a good dividend but the stock doesn't do to well so you slowly go backwards. Some are a solid stock that also pays dividends. I'm looking hard at IBM and AT&T. Right now I have both and will probably increase shares in both. INTC(intel) is the other sleeping giant that has my attention.

Generally, the higher a dividend payout is, the worse the stock is going to perform. There are very few that beat that rule. Right now, energy comes to mind, but energy has been chronically undervalued since the great reset began, and is only now getting to where it should have been all along.

Don't use dividends to make money, use them as performance indicators. You'll be hard pressed to find a loser among companies that raise their dividends by at least the inflation rate every single year.

If you wanna find the juggernauts, look for the growth and income stocks that yield under 2.5% and have a history of raising their dividend every single year. Quite possibly the best ever on this front is Home Depot, but there are others that also swim among the champions. The Tractor Supply Company just reported today, and they came through with a blowout quarter. Beat on sales, beat on profit, raised full year guidance, and massively hiked the dividend, again.



They hike every year, and every year, the hike outruns inflation by a good margin. They ought to really take off once the spring stimulus check is announced. I've got my fingers crossed for $3,000/person.