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View Diary: New IRS report confirms upcoming retirement crisis (95 comments)

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  •  are you invested all in cash? (1+ / 0-)
    Recommended by:
    Aunt Pat
    •  Don't need to be... (3+ / 0-)
      Recommended by:
      lgmcp, Aunt Pat, gjohnsit

      ...depending on which fund(s) you're invested in.  enough are such dogs that in the aggregate you can achieve barely-positive returns in stocks or bonds.

      The road to Hell is paved with pragmatism.

      by TheOrchid on Fri Sep 06, 2013 at 02:24:45 PM PDT

      [ Parent ]

      •  the market is up double digits this year. (5+ / 0-)
        Recommended by:
        WillR, kck, Joe Bob, Aunt Pat, akeitz

        yous have to be in bonds or cash to have a return like that.

        •  You need to ask Dr. Colossus... (6+ / 0-)

          ...what time frame he's referring to.  The last nine months is an eye blink in terms of saving for retirement.  He could be including the 2008 crash (I have a couple of funds that STILL haven't recovered from that).  And you're assuming that all stock funds will catch the market, which isn't the case.

          The road to Hell is paved with pragmatism.

          by TheOrchid on Fri Sep 06, 2013 at 02:32:20 PM PDT

          [ Parent ]

          •  the market as a whole has more than (3+ / 0-)
            Recommended by:
            WillR, White Buffalo, Joe Bob

            recovered from 2008.  unless you're stock picking and having bad luck, you're up.

            •  To repeat myself: (3+ / 0-)
              Recommended by:
              Aunt Pat, gjohnsit, RainyDay

              "I have a couple of funds that still haven't recovered from [the 2008 crash]."  And don't forget the timeframe aspect I mentioned; the 2008 crash was just an example.  And some funds are mixed stock and bond funds.  And some funds invest heavily in foreign stocks, or depend upon currency exchange values, and those funds have by and large taken a beating this year.  And don't forget many 401(k), 457 and 403(b) management companies skim a healthy percentage off the top for "management fees," no matter how the funds they manage ar actually doing.

              Looking at the Dow or S&P500 is only one small indicator of how a 401(k) fund or set of funds might be doing.

              The road to Hell is paved with pragmatism.

              by TheOrchid on Fri Sep 06, 2013 at 02:54:05 PM PDT

              [ Parent ]

              •  right, but if you have a reasonably (3+ / 0-)
                Recommended by:
                Joe Bob, White Buffalo, kck

                allocated portfolio - to repeat myself - you've caught up and then some.

                •  Then nobody I know is reasonably allocated (5+ / 0-)

                  because just about every body agrees that their totals have barely budged in years.  

                  Yeah, we're lazy and ignorant:  we let some fund management company make most of our picks and then we ignore them for decades  But welcome to the world -- if everybody could be a great stock market investor, we wouldn't NEED social security.

                  "The extinction of the human race will come from its inability to EMOTIONALLY comprehend the exponential function." -- Edward Teller

                  by lgmcp on Fri Sep 06, 2013 at 03:11:06 PM PDT

                  [ Parent ]

                  •  Have to agree with jw on this one (2+ / 0-)
                    Recommended by:
                    akeitz, lgmcp

                    If someone’s 401(k) has grown at 0.5% over the past five years they are doing something wrong. The annual rate of return on my very boring set of mutual funds is 7% over the past 5 years and 24% over the past 12 months. Most of that money is in a dumb old index fund.  

                    I’m not a great investor either – I’m a saver and I’m not really interested in following the stock market. That’s why I put money into a boring index fund and don’t mess with it. Sure, I would rather have a pension to rely on but a 401(k) is the hand most of us have been dealt. If people are willing to put as much effort into it as they do researching a new car or the specs on a new laptop they can make the best of it.

                    Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. - Groucho Marx

                    by Joe Bob on Fri Sep 06, 2013 at 04:07:17 PM PDT

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                  •  That's very weird. (0+ / 0-)

                    It seems like a statistical anomaly if "every body" (which I assume is at least several people) had virtually flat balances over the past few years unless they all were in, effectively, cash (MM, CDs, short term bond funds, et al).

                    If they all picked virtually the same investments by coincidence and they happened to pick ones that didn't do well in the recovery it would not be as surprising, but I'm assuming that they made independent decisions which would make this explanation a statistical anomaly.

                    But, it would be difficult to pick investments that were "flat" for the past few years if one included even a modicum of domestic stock with diversification.

                    Sounds like a "black swan" event that all these people managed to outguess the market and figured out how to maintain an investment mix that didn't go up or down appreciably in the past few years.

                •  You definitely belong in banking. -eom- (0+ / 0-)

                  The road to Hell is paved with pragmatism.

                  by TheOrchid on Fri Sep 06, 2013 at 03:13:26 PM PDT

                  [ Parent ]

                •  You definitely belong in investment banking. -eom- (0+ / 0-)

                  The road to Hell is paved with pragmatism.

                  by TheOrchid on Fri Sep 06, 2013 at 03:14:15 PM PDT

                  [ Parent ]

        •  Generally when the stock market is at record highs (0+ / 0-)

          and has been going parabolic for months, that is a very bad time/b> to invest in stocks.

          None are so hopelessly enslaved, as those who falsely believe they are free. The truth has been kept from the depth of their minds by masters who rule them with lies. -Johann von Goethe

          by gjohnsit on Fri Sep 06, 2013 at 04:39:03 PM PDT

          [ Parent ]

    •  I'm young (2+ / 0-)
      Recommended by:
      PsychoSavannah, gjohnsit

      so all aggressive funds, little in the way of cash.  Just like im supposed to do right.  If it were not for deferment of taxes it would almost make sense to just take the cash and put it into savings.

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