Wring your hands over the stock market here.

17 years ago

I don't advocate spending time worrying, but a lot of us are naturally concerned about our nest eggs, 401Ks, and the like, and sometimes it helps to share our concerns with others in the same boat. Or similar boats. Or just floating in the same sea.

I received my November financial statement in the mail today. I was expecting a loss over last month, but not that big. I feel a little sick. And perhaps worse, I discovered that my portfolio isn't as diversified as I thought. In fact, I can't say it's diversified at all. It's almost entirely in stocks. I don't know why my broker chose to do this, and I'm mad at myself for not discovering this fact a lot earlier. Too late to do anything now.

Sigh........

Your turn.

Susan

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Comments (15)

susanjf_gw
17 years ago
last modified: 10 years ago
i dread ours...at least the last session we had (w/advisor), i insisted on bonds and utilities...but the largest chunk is money market...dh is getting so close to retirement age and i don't see it happening, when he wants it...(65)i'm just glad he has a job, and we're less than 50k from having the house paid for.
vannie
17 years ago
last modified: 10 years ago
It's made us sick. The only consolation we have is that we have no debts. If we ever recover from this, or partly recover, I'm going to sell some stuff. DH met w/ our retired stock broker and he thought it was a good thing that we had so many utilities. I wish I had it all hidden in a sock somewhere!!
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jannie
17 years ago
last modified: 10 years ago
I've lost over $30,000 (on paper) from my 401 K in the last three months. I'm crying and scared.
whidbeykathy
17 years ago
last modified: 10 years ago
We just got our statement in todays mail. Wow, I dread telling husband when he gets home. We lost a huge chunk this time.
It really bothers me because we just transfered a lot out to a different money market instead of stock. We would have transferred even more rather than just lose it. I guess the stockbroker thought we were safe?! Dh is going to really be on the warpath about it.Not much to be done now though..
sue_va
17 years ago
last modified: 10 years ago
"When you get to the end of your rope, tie a knot in it and hang on." We don't know what the future will bring, so all we can do is hope for the best. I won't get a statement until the end of the year, so I don't know what my situation is right now, but there isn't anything I can do about it anyway. I am not a worrier.

I will tell you about a situation I ran into yesterday. I had been thinking about getting a Discover card and start paying all my bills on it. I never carry a balance and thought the "pay on time" would give me a few dollars back. I applied on line. Didn't work, so I called the 800#, only to find out that the Invitation Code # had expired, but I could try again in 45 days.. Not only that, I couldn't be approved because I don't have a mortgage payment, or pay rent. (I bought into the Retirement Community where I live.)
I think I sound like a good risk! So there went that idea!

Oh, well.

Sue
okwriter
17 years ago
last modified: 10 years ago
DH is 50 and hopes to retire at 55. I've been wanting to whack him up'side the head this last year for having all of his 401k money in the "safe" fund with guaranteed interest instead of in some of the stock and index funds.

He's looking pretty darn smart right about now.
:-)
grammahony
17 years ago
last modified: 10 years ago
Your right Rita. They say, 5 years from when you want to retire, to make sure all your investments are in a 'fixed' income type investment. No investments where there is a risk.
DH is where he needs to be. Go give him a big kiss.
Leslie
petaloid
17 years ago
last modified: 10 years ago
I got my statement for my TSA yesterday and it was not good news. I don't retire for about three years and don't know if things will have recovered before then. I'm going to have to shift more of my annuity to a fixed account.
bigfoot_liz
17 years ago
last modified: 10 years ago
many certified financial planners including suzy orman (& my dad) say move out of stock based funds 10 yrs ahead of retirement. i'm sure alot are wishing right now they had educated themselves on their holdings & risk. i've got almost 30 yrs till i'll be living off the interest from my investments and am on a buying spree...i have a co-worker who has been just giddy for days over all he can buy in stocks right now. i try to temper that by reminding him that we may be well prepared (i started at 19)to retire early & well off but one way or another we'll end up paying the price for those who are not. ~ liz
itsmesuzq
17 years ago
last modified: 10 years ago
I finally looked online today at my balances. I have a IRA from a rollover 401k, and my 403b with my current job. I have lost roughly $32,000 in 8 days!! And about $62,000 since August 6th. And if I bail out now I'll lose lots more. And my portfolio isn't even all in stocks! It's so sad to see all this hard earned money being lost everyday! My advisor at Fidelity is going crazy because the losses are straight across the board...not just stocks.

I am planning on retiring next July 1st, but I will wait to see how the months play out. I can stay longer if I want I was just hoping to be able to leave when I was 63.

The one thing is the government is finally stepping in and trying to stem the bleeding, but it feels like the levees are broken and we're all up to our necks in trouble. We all know how Katrina turned out.

So many things going on, world wide...it really makes you wonder. I have decided to hold on tight and try to think positive. I just wish I had the faith in "the powers that be" like I used to. But I honestly don't anymore.

I do feel blessed in so many ways though (I do have a job and I'm not retired yet) but I do feel very sad for the older folks who are depending on their IRA's etc. to help them live out their days.

Susan
grittymitts
17 years ago
last modified: 10 years ago
When I heard/read about the &%$#!@'s like AIG top dogs I think it's time to give serious thought to holding old fashioned Public Hangings!

To see this story with its related links on the guardian.co.uk site, go to http://www.guardian.co.uk/business/2008/oct/07/creditcrunch.useconomy

Executives at bailed-out AIG stayed at $500 a night Californian resort
A week earlier the Federal Reserve had to extend a huge credit line to AIG to keep the troubled firm from collapsing
Andrew Clark in New York
Tuesday October 7 2008
guardian.co.uk

The world's largest insurance company, AIG, spent $440,000 (?250,000) on a lavish corporate retreat at one of California's top beachside resorts just a week after accepting an $85bn emergency loan from the US government to stave off bankruptcy.

Details of the getaway emerged at a congressional hearing today where lawmakers expressed outrage at AIG executives "wining and dining" at the height of a financial crisis.

An invoice from the St Regis resort in Monarch Beach, south of Los Angeles, shows that AIG spent $139,375 on rooms, $147,301 on "banquets", $23,380 on spa treatments and $6,939 on golf at an eight-day company event which began on September 22.

A week earlier, on September 17, the Federal Reserve had to extend a huge credit line to AIG to keep the troubled firm from collapsing due to vast liabilities on risky financial insurance policies.

"Average Americans are suffering economically," said Henry Waxman, chairman of the House oversight committee. "They are losing their jobs, their homes and their health insurance. Yet less than one week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation."

Set in 172 acres of grounds on a bluff overlooking the Pacific ocean, the St Regis resort describes itself as "Tuscan inspired". Rates for its 325 rooms are typically upwards of $500 a night and the travel guide Fodor's gives the place a rave review, saying: "Exclusivity and indulgence carry the day here; you can even have someone unpack for you."

An AIG spokesman said the event was to entertain independent insurance salesmen of AIG American General - one of the company's main US operations which offers life, health and accident policies.

"It was a recognition event for independent agents of AIG American General who distribute insurance policies," said the spokesman. "It was planned months ago."

In written evidence to Congress, AIG's former chief executive, Robert Willumstad, blamed an "unexpected and unprecedented market-wide crisis of confidence" for the company's financial predicament.

AIG wrote off more than $50bn in unrealised losses on complex mortgage-related instruments such as credit default swaps. But Willumstad, who stood down as a condition of the federal bail-out, blamed mark-to-market accounting rules for accentuating the impact of the company's exposure, prompting downgrades by credit rating agencies.

"Looking back at my time as CEO, I don't believe AIG could have done anything differently," said Willumstad. "The market seizure was an unprecedented global catastrophe."

Copyright Guardian Newspapers Limited 2008
jemdandy
17 years ago
last modified: 10 years ago
If you have a few more years to work, your IRA will recover unless you have a buch of junk funds. I'm retired and by a quirk of fate, I have 2/3 of mine in FDIC insured CDs, and that is what is saving me now. Even at that, the stock/fund portion has lost $138,000 since last November - I'm sick about it. I'm also mad because the FEDs lowered the interest rate over night to 1.5% Now I know this does not directly apply to interest bearing accounts, however, the this overnight rate that banks charge each other is used as an excuse for setting the CD rates. I have one more CD maturing before years end, and I'll be lucky if I can get 3% on renewal.

For years, the pundits have said we are bunch of slackers when it come to saving, but look what it gets us! When the bankers want to get cheap money, they lower the interest rate on your savings. In effect, this reduced interest rate effectively gives the banks almost free use of your savings. Tomorrow, the interest rate for an ordinary CD will barely match inflation which means you are loosing money because you have to pay taxes on the interest and that can lower its return below inflation. I'm hopping mad about the whole money grabbing business.

Although, I understand that the FEDs do have to act boldly and quickly to avoid a complete crash, and that would be no good for anyone. Anyone for discussing 'trickle down' wealth? How about we invert the system and have trickle-up wealth flow.

In my humble opinion, this whole mess was caused by immence greed by a few. Once one large finanical instution fell, the effect rippled through the others like a tsunami especially those who were using similar business practices.
alisande
Original Author
17 years ago
last modified: 10 years ago
And the greed goes on. There is so much wrong with the current system, and I admit I don't understand half of it. Even if I did, I think it would still make my head spin.

Thanks for wringing your hands with me, everyone. It does help.
socks
17 years ago
last modified: 10 years ago
It's making me sick.

Where is Joyful? This is his kind of topic.
bigfoot_liz
17 years ago
last modified: 10 years ago
he's probably out buying up the bargains lol. saw a national news story last night about a mini housing frenzy going on in cape coral/fort meyers. there are thousands of condos, townhouses and homes brand new previously listed at $250-300K from builders going for $50-80K. can you say south fl vacation home lol??!!! i'm seriously thinking of it, heck if all i did was sit on it for yrs and resold in 10 i'd make something. you still can't get a starter home in orlando under $250K, never will cuz pricing in my neighborhood is starting to recover and houses are clearing out again in weeks. ~ liz

Wring your hands over the stock market here.

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