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

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  •  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

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      •  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

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    •  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 ]

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