The 2015 Market Crash

[Uncle Ted]

According to this article only 1 in 3 millennials have money in the stock market... I guess they are betting on social security being around by the time they retire.

http://www.businessinsider.com/why-s...-market-2016-7

[byu71]

Wait... Only the rich have 401k's?

It is hard to believe that only 50% of Americans own stock but isn't that about the same percentage that pay income tax?

I am a bit surprised at that number with all the IRA's and 401K's available. I have a few 401k client. I am surprised at the number of those (20-30%) that don't participate and the companies have a matching program.

[Jeff Lebowski]

I am a bit surprised at that number with all the IRA's and 401K's available. I have a few 401k client. I am surprised at the number of those (20-30%) that don't participate and the companies have a matching program.

That stat blows me away too. Take the match and then pull your money out in a few years with a penalty. You are still money ahead! Why would you pass up free money? I don't get it.

[myboynoah]

That stat blows me away too. Take the match and then pull your money out in a few years with a penalty. You are still money ahead! Why would you pass up free money? I don't get it.

You can eat that marshmallow on the table in front of you right now, or if you wait five minutes, you'll get two marshmallows.

[imanihonjin]

You can eat that marshmallow on the table in front of you right now, or if you wait five minutes, you'll get two marshmallows.

And at the end of the day, when you are too old or unable to work, the government will make sure you have marshmallows on your table.

[byu71]

And at the end of the day, when you are too old or unable to work, the government will make sure you have marshmallows on your table.

They will, but not enough marshmallows to be financially independent and go and do what you want.

[Jeff Lebowski]

You can eat that marshmallow on the table in front of you right now, or if you wait five minutes, you'll get two marshmallows.

Haha. Exactly.

[PaloAltoCougar]

I'm definitely a buy and hold guy, but I'm already conditioning myself for a significant drop in the market during the next six months. I think we're seeing an irrational exuberance.

[Clark Addison]

I'm definitely a buy and hold guy, but I'm already conditioning myself for a significant drop in the market during the next six months. I think we're seeing an irrational exuberance.

I agree. I have zero confidence in my ability to time the market, so I will probably not do anything about it, but I am expecting some sort of correction.

[byu71]

I'm definitely a buy and hold guy, but I'm already conditioning myself for a significant drop in the market during the next six months. I think we're seeing an irrational exuberance.

I think there is some counting of the chickens before the egg is hatched. I wouldn't be so sure Trump is going to get all his economic proposals through.

We have to remember he spends a lot of his time and energy trying to make sure the press eventually has to answer to the government and then change the rules so he can serve as President for life.

Just out of curiousity, what kind of drop would you consider significant.

[Moliere]

I'm definitely a buy and hold guy, but I'm already conditioning myself for a significant drop in the market during the next six months. I think we're seeing an irrational exuberance.

At your age (I mean that as a compliment ) if you have significant holdings in the stock market then you deserve to lose a lot if the market turns.

As my dad got close to retirement, he was called to serve as a mission president. Not wanting to be bothered by managing his retirement/savings money during that time he put it all into some fixed income stuff. This was a year or so before the bubble really burst. He lost nothing and in fact bought back in a bit at the low point since he was back home by then. Lucky timing in his part.

I too am perplexed at how many people have no savings. I'm not talking about wage earners, but couples that both have professional jobs. I've got a friend that makes $200k+ and his wife is a partner at a small cpa firm, but works part time so she's making around $125k ish and they complain to me that they don't have enough money to save for retirement. Of course the both drive really nice/new cars, live in a big house close to downtown, and pay for private school and child care for their kids including a nanny that is home 40 hours a week. They work their balls off so they don't have to do cleaning or babysitting. It's weird, but works for them.


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[Jeff Lebowski]

At your age (I mean that as a compliment ) if you have significant holdings in the stock market then you deserve to lose a lot if the market turns.

As my dad got close to retirement, he was called to serve as a mission president. Not wanting to be bothered by managing his retirement/savings money during that time he put it all into some fixed income stuff. This was a year or so before the bubble really burst. He lost nothing and in fact bought back in a bit at the low point since he was back home by then. Lucky timing in his part.

My financial advisor has convinced me that this sort of thinking is foolish. Suppose you retire at age 65. You will not pull your money out immediately but will gradually withdraw it over 20-30 years. That is a long time horizon! You are better off keeping some of your money in stocks and weathering the dips. You will be money ahead in the end, especially if you have multiple assets/streams of income. PAC is doing it the right way.

[New Mexican Disaster]

Many people have no savings because they barely have enough to live on.

[Moliere]

My financial advisor has convinced me that this sort of thinking is foolish. Suppose you retire at age 65. You will not pull your money out immediately but will gradually withdraw it over 20-30 years. That is a long time horizon! You are better off keeping some of your money in stocks and weathering the dips. You will be money ahead in the end, especially if you have multiple assets/streams of income. PAC is doing it the right way.

I used the word "significant" in that it's fine to have money in the stock market, I wouldn't have a significant portion of my savings in there. Plus, there are a lot of better investment vehicles open to people that have a lot of money, but I'm sure PAC knows this.


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[Moliere]

Many people have no savings because they barely have enough to live on.

Yep, like my friends that pull in over $300k per year.


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