Submitted by AgathaMarple t3_11ckoei in newhampshire
I'm retired and part of my income comes from investments. I'm trying to decide if I should 'stay the course' or transfer a significant amount to cash. Leaning toward staying the course... because I'm hoping it will be another 'near miss'. Any thoughts out there?
Agreed. This is a question for your investment advisor, not a bunch of random strangers on the internet.
I hear you. I'm more interested in people's thoughts about this. There isn't really too much you can actually do. It appears cash will be hit the least at about 10%, investments at about 30%, and treasuries even more.
Try r/personalfinance
Thanks.
Here's an excellent recent podcast on the debt ceiling. You may find it reassuring.
Jerome confirmed last week in an interview at the Economic Club of Washington DC that there will be no trillion dollar coin. So it's up to Congress to decide what to do with spending and debt.
Thanks much.
If America goes into default, a bunch of things are going to happen that are both bad and unprecedented.
Fortunately, nobody's been quite stupid enough to nuke their own money so far.
> nuke their own money
Right. This is an imaginary issue that will be used as political theater, but has ZERO chance of happening, no matter how much McCarthy huffs and puffs.
To do so would be unprecedentedly stupid. It’d get rid of a few billionaires the hard way and the “trickle down” would wipe out a couple sectors of the economy, forcing a full-scale worldwide depression.
If the US defaults, the world has bigger things to worry about.
I'm counting on that.
Time in the markets beats timing the markets
what are cyclicals
Industries & companies that cycle up and down. They cycle with a high enough frequency that saving over a 40 year career minimizes their relevance on portfolio performance.
For anyone who will be dealing with this for any length of time the bigger question is " How worried should we be if the feds don't get spending and inflation under control?"
Cash is paying good rates
CDs are paying some really good rates. Got one for 4.9% locked in for 2 yrs.
care to share. I got 4.15 but would love 4.9
Higher rate for higher deposit. Capital One.
time in the market is better than timing the market. stay the course.
I hear you.
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Yup. No more 'set it and forget it'.
With CDs at 4.8% that’s a lot safer than stocks right now. Stocks might end up more than 4.8% from here, at the end of 2023, but it is not likely.
I hear you. It's an option I'm considering at least in part. I've been with Vanguard for decades and loved them, but since Bogle died, it's not the same.
where is this 4.8 you speak of
Fidelity has a 12 month ladder cd paying 4.88
thx
and what is there fee
popular direct has savings rate at 4.40% for cash - I have an old capital one account I was about to close but they are doing an 11 month CD for 5% which is appealing. I've held off as I think rates will continue to go higher.
mind you we're all still just losing money vs. inflation but at least it's slightly less loss
Worry about the upcoming war with China in a few years, but for now your good.
we can avoid it if we stand up to our government
No I think China is dead set on taking over the world.
i have never heard a chinese say they want to take over any country
You need to watch the news, not WMUR which is busy with a trailer. They want the whole south China sea. Philippines and Vietnam have claims. They shoot the fishing boats of these nations. They want to take Taiwan by force instead of wealth. Taiwan supplies 80% of the worlds electronics.
i dont watch the news because its toxic nonsense and propaganda. and nobody will make me believe that any citizens between usa and china have something to fight over. i think more people should turn off the news
War is coming, it's the path chosen by the governments, and its government not people who execute Wars. In any case, the world is much better off if the Chinese are defeated
thats why i said the only way to avoid war with china is by standing up to our government. and i hope the chinese stand up to theirs.
The govt will prevent their kids from going to better schools, or give them a smaller apartment, or take something away if they speak out. Nobody needs that kind of tyranny. They are under 100%surveillance.
they=we
no. No one is gonna send ur kids to a shitty school or make you live in a meth infested neighborhood if you call Joe Biden a Dick.
In general, I would advise anyone to work as late as they possibly can, especially if you have a a reasonable career/job and are able. I see so many retirees having to get low wage jobs to make ends meet and they could easily have worked to 70+
That’s horrible advice! Plan, save, and retire as early as you can. You can always make more money, you can’t make more time.
I retired 4 years ago at age 52. Highly recommended!
Sure, but most people can't do that, or are approaching retirement age and have not saved. You advice is a lecture, not advice.
But which is better? Work until you can’t or retire and get a job 5/10/20 years later because you’re running out of money? If you work until you can’t, what good is retirement?
And I agree that many people can’t plan and save because life is expensive. Plus most people adjust their quality of life upwards as they make more money making saving harder.
It's always better to have more money. Younger people always ask me how I made my money and it was that I got lucky and I worked hard, and I had a good support of wife who also worked hard. Although I grew up poor I had supportive parents who valued education and had high expectations. Not everybody had the same advantages as me, including being intelligent, and white and male, but mostly it was my parents who taught me hard work pays off.. I do agree that people spend the money they make instead of saving however. It's brutally hard for people once you get caught in the trap of debt. This is what I hate about the social media and the influencer culture, people need to stop buying more than they can afford
Yes, not a good situation.
Also retired and am staying the course. Trying to time the market is not an easy thing to do. Set it and forget it!
Retirees will be put into nursing homes and stripped of assets one way or another. That's a natural course of every society that has workers and non-working dependents.
I would agree with you but there has to be enough money to go to a nursing home. They are almost all for profit and are outrageously expensive.
Lots are outrageously expensive because they have to carry Medicaid patients. My moms bill is about 15k a month but she will end up on Medicaid when the money runs out. She is going to be in the same room, same food, same care when the govt picks up the tab. But they are not paying 15K a month.
CDogNH t1_ja3juyh wrote
Um, this is not where I would seek investment advice. In general, it's likely to get worse before it gets better though.