Americans' retirement plans have lost as much as $2 trillion

[Johansen8]

I cannot seriously believe that the dollar has been destroyed for a mere seven years

[maat55]

One of my clients told me today, that she has lost 400k in the market in just the last month, OUCH.

[disgruntable]

While this is a huge hit for people preparing to retire, this is a great opportunity for young people with some extra cash. Hopefully young people will recognize the opportunity, buy some of these investments and drive the prices back up.

[disneysteve]

Originally Posted by disgruntable

While this is a huge hit for people preparing to retire, this is a great opportunity for young people with some extra cash. Hopefully young people will recognize the opportunity, buy some of these investments and drive the prices back up.

Finally, today, I heard a report saying that the market is very oversold. People are just panic-selling and dumping shares that are worth more than their current prices. I'm curious to see what happens in the market the rest of the week. I know I'm putting money in.

[PRICEPLUS]

I will be cautiously put money in as the market falls. It is a great opportunity for those who do not lose their heads!

[Johansen8]

I know some friends who retired 2 years ago, but lost so much money on the stock market , that they have to work again.

[MYOM]

When you invest, you have to have an Exit Strategy. It is a simple as that. The problem is few investors who manage their own money or those with a financial advisor have an exit strategy. Riding a Rolla Coaster market up and down is no way to manage money at all.

You must know when to get in and when to get out. If an exit strategy is not a part of your investment plan then you'll lose.

Dan Clemons

[disgruntable]

Originally Posted by Johansen8

I know some friends who retired 2 years ago, but lost so much money on the stock market , that they have to work again.

My thoughts go out to them. It must be heartbreaking to have your retirement crushed like that.

With that said, do not put money in the stock market that you can not afford to lose. Money you need to live on should be in much more secure investments.

[sweeps]

Originally Posted by disgruntable

With that said, do not put money in the stock market that you can not afford to lose. Money you need to live on should be in much more secure investments.

I agree with you, but notice the advice from financial planners and brokers nowadays is to remain heavily invested in stocks (60% or more), even in your early retirement years. Because you don't want to "outlive your money". Oops.

[jIM_Ohio]

Money I invest for living 7 expenses 7 years from now is not money I need now and can therefore be invested in stocks.

The money I need in 6 years is not in stocks.

Obviously people read a once sentence statement and interpret it 3-4 different ways. Nothing is that simple.

The key issue is when the money is needed. Less than 7 years needs to be out of market and less than 3 years needs to be in cash.

[MYOM]

Originally Posted by sweeps

I agree with you, but notice the advice from financial planners and brokers nowadays is to remain heavily invested in stocks (60% or more), even in your early retirement years. Because you don't want to "outlive your money". Oops.

This retired Certified Financial Planner and Registered Investment Advisor of 30-years believes the asset allocation between stocks and bonds should look like this:

Age 60 50/50
Age 65 40/60
Age 70 30/70
Age 75 20/80
Age 80 10/90
Age 85 100% fixed interest

Dan Clemons