50% of the stock market is retirement money

[corn18]

Half of the US stock market is held by retirement funds (401k, IRA, 403b and pensions).

What do you think of that?

[disneysteve]

That doesn't surprise me at all since that's how most people and institutions invest.

[AggieLife]

That doesn't surprise me at all since that's how most people and institutions invest.

Very true, I feel that when people think of investing the first idea is investing through retirement funds.

After maxing 401K and ROTH IRA's, is there any common "plan" so to speak, where people invest their money? Or is it just your normal brokerage or bank and you invest in stocks/funds through them?

[disneysteve]

Very true, I feel that when people think of investing the first idea is investing through retirement funds.

After maxing 401K and ROTH IRA's, is there any common "plan" so to speak, where people invest their money? Or is it just your normal brokerage or bank and you invest in stocks/funds through them?

I don't have a 401k (never have had one). So I max my Roth, which isn't nearly enough due to the low limit. The rest of my "retirement" money goes into taxable mutual fund and brokerage accounts.

[KTP]

I don't have a 401k (never have had one). So I max my Roth, which isn't nearly enough due to the low limit. The rest of my "retirement" money goes into taxable mutual fund and brokerage accounts.

You don't have some sort of profit sharing plan being a doctor? SEP IRA or something?

[disneysteve]

You don't have some sort of profit sharing plan being a doctor? SEP IRA or something?

Nope. No employer-sponsored plan. I work for one guy who isn't great with his own money and has never set up anything for himself, me, or the staff. It sucks but I like the job otherwise. Been there 14 years now.

I do have a SEP-IRA from my survey earnings and ebay/half.com sales and my wife and I each have Roths. She also has a 401k and a 403b from previous jobs. We also both have rollover IRAs from previous jobs.

[KTP]

Nope. No employer-sponsored plan. I work for one guy who isn't great with his own money and has never set up anything for himself, me, or the staff. It sucks but I like the job otherwise. Been there 14 years now.

I do have a SEP-IRA from my survey earnings and ebay/half.com sales and my wife and I each have Roths. She also has a 401k and a 403b from previous jobs. We also both have rollover IRAs from previous jobs.

Hmmm, I would put on a little more pressure. All the docs on Bogleheads sock away a few million a year into some sort of retirement plan (ok not really that much but it seems like it sometimes when you see their balances).

[feh]

Hmmm, I would put on a little more pressure. All the docs on Bogleheads sock away a few million a year into some sort of retirement plan (ok not really that much but it seems like it sometimes when you see their balances).

Of course, salaries of MDs vary greatly. The difference between a General Practitioner and, say, an anaesthesiologist, is stark.

[ua_guy]

Half of the US stock market is held by retirement funds (401k, IRA, 403b and pensions).

What do you think of that?

It makes me nervous.

For example, I'm invested in a 403b with a bunch of money in a vanguard target date retirement fund (2045?) which should still have a heavier share of risk. I also have an IRA that is spread across different index funds, with some good risk in there as well.

The returns, just looking at the 403b, are pretty deplorable. Most growth models assume a 5-6%annual return rate and I've been simmering along somewhere north of 2%.

When you also consider that employee-funded retirement plans virtually didn't exist 30 years ago, it makes me a bit ill to see how things have swung entirely in the corporate world's favor.

[disneysteve]

I'm invested in a 403b with a bunch of money in a vanguard target date retirement fund (2045?)

The returns, just looking at the 403b, are pretty deplorable. Most growth models assume a 5-6%annual return rate and I've been simmering along somewhere north of 2%.

That doesn't make any sense.

Vanguard's 2045 fund has a 1-year return of 15.58%, a 5-year of 16.35%, and a 10-year of 7.55%. If you are only getting 2%, something is wrong or you aren't actually in Vanguard's 2045 fund.

[bigdaddybus]

Half of the US stock market is held by retirement funds (401k, IRA, 403b and pensions).

What do you think of that?

I personally dont think I believe that number.

When I hear stats/statements like "The top 1% control 42% of the wealth in the US"

http://www.mybudget360.com/top-1-percent-control-42-percent-of-financial-wealth-in-the-us-how-average-americans-are-lured-into-debt-servitude-by-promises-of-mega-wealth/

"one of three Americans have zero retirement savings"

http://www.mybudget360.com/retirement-account-fantasy-middle-class-erosion-retirement-account-top-1-percent-earnings-stocks/

Its hard to believe statements like yours

[disneysteve]

I personally dont think I believe that number.

Its hard to believe statements like yours

Why do you find that hard to believe? Many people invest through their employer - 401k and 403b. Many more invest on their own with traditional, Roth, or SEP IRAs.
Still others have pension plans and the plans themselves invest the assets in the market.

It doesn't sound unreasonable to me at all that all of that would account for 50% of stock investments.

[bigdaddybus]

Why do you find that hard to believe? Many people invest through their employer - 401k and 403b. Many more invest on their own with traditional, Roth, or SEP IRAs.
Still others have pension plans and the plans themselves invest the assets in the market.

It doesn't sound unreasonable to me at all that all of that would account for 50% of stock investments.

did you even consider what I posted? doesnt sound like it

[Petunia 100]

I personally dont think I believe that number.

When I hear stats/statements like "The top 1% control 42% of the wealth in the US"

http://www.mybudget360.com/top-1-percent-control-42-percent-of-financial-wealth-in-the-us-how-average-americans-are-lured-into-debt-servitude-by-promises-of-mega-wealth/

"one of three Americans have zero retirement savings"

http://www.mybudget360.com/retirement-account-fantasy-middle-class-erosion-retirement-account-top-1-percent-earnings-stocks/

Its hard to believe statements like yours

I see your point, but what about pension plans?

[Petunia 100]

Half of the US stock market is held by retirement funds (401k, IRA, 403b and pensions).

What do you think of that?

I think it is great. It suggests to me that money will be "uninvested" slowly.