Saving 15% works!

[rerod]

A bear market is approaching. Stay tuned.

Markets go up, markets go down, That's all anyone knows.
If you DCA 15% through out your accumulation period, you wont even remember the corrections by the time you finally retire.

[Nutria]

A bear market is approaching. Many investors today haven't lived through one of those. It can turn a 401K into a 201K in a matter of weeks, and can take many years to recover. Right now it's all the land of milk and honey because anything and everything is making the markets go up.

This (http://www.kiplinger.com/article/inv...0-and-why.html) article says that the Dow is currently right where it should be for 7% annual growth since 1972. It's 1999 and 2008 that were over-priced, not now.

Of course... he might be wrong.

[corn18]

A bear market is approaching. Many investors today haven't lived through one of those. It can turn a 401K into a 201K in a matter of weeks, and can take many years to recover. Right now it's all the land of milk and honey because anything and everything is making the markets go up.

In a bear market, seemingly anything and everything makes the market go down. It will be interesting to check everyone's pulse around here in the midst of a bear market. Stay tuned.

You seem like the kind of guy that goes on a BMW enthusiast site and tells them how much BMW sucks and that they should buy a Porsche.

[disneysteve]

A bear market is approaching. Many investors today haven't lived through one of those. It can turn a 401K into a 201K in a matter of weeks, and can take many years to recover. Right now it's all the land of milk and honey because anything and everything is making the markets go up.

In a bear market, seemingly anything and everything makes the market go down. It will be interesting to check everyone's pulse around here in the midst of a bear market. Stay tuned.

And of course real estate never loses value and businesses never fail.

[TexasHusker]

And of course real estate never loses value and businesses never fail.

Of course they do. I've lost my shirt on several ventures.

[TexasHusker]

You seem like the kind of guy that goes on a BMW enthusiast site and tells them how much BMW sucks and that they should buy a Porsche.

Actually both are good cars. BMW is way ahead on technology however.

But to your point, let's see how high the confidence level is in the ol' 401K during the next bear market. We will have a whole new generation of "never again" ers.

It's been all sunshine ever since the Fed has manipulated everything through low or no interest rates, buying back bonds, issuing billions in new debt for such things as cash for clunkers, and about anything else they can come up with to keep things afloat. You think we are just going to cruise out of all that manipulation without paying the piper?

You can't keep playing monopoly forever. A season of reckoning will happen.

[LivingAlmostLarge]

Maybe but it all works out in the end

[Nutria]

Maybe but it all works out in the end

You're dead in the end. Whether or not "it" has worked for you in the meantime is not accurately forecastable.

[corn18]

Actually both are good cars. BMW is way ahead on technology however.

But to your point, let's see how high the confidence level is in the ol' 401K during the next bear market. We will have a whole new generation of "never again" ers.

It's been all sunshine ever since the Fed has manipulated everything through low or no interest rates, buying back bonds, issuing billions in new debt for such things as cash for clunkers, and about anything else they can come up with to keep things afloat. You think we are just going to cruise out of all that manipulation without paying the piper?

You can't keep playing monopoly forever. A season of reckoning will happen.

I think I may have been obtuse.

This is a Saving Advice forum. You always bad mouth saving in favor of real estate investing. Go away.

[disneysteve]

Of course they do. I've lost my shirt on several ventures.

Exactly. So to constantly come here telling everyone they're doing it wrong if they are investing in the stock market because the market can go down is meaningless advice. Real estate can lose value (see 2008). Businesses can fail. Collectible markets can crash. Gold is certainly not a dependable investment. Everything on your list has the potential to lose value over time.

And to be clear, I've been investing in the market since the 1980s. There have been 3 bear markets since I started during which the S&P 500 dropped 33.5%, 49.1%, and 56.4%. None of that has scared me away for a moment or made me change my advice to others about saving for retirement.

[rennigade]

A bear market is approaching.

Could you be so kind as to let everyone on savingadvice know when the bear market will start? That way we can all shift our money around before said date happens. Pretty please???

[TexasHusker]

Could you be so kind as to let everyone on savingadvice know when the bear market will start? That way we can all shift our money around before said date happens. Pretty please???

Who only knows. My point is that nothing goes straight up. The stock market has been on a pretty steady incline for years now, due a great deal to unprecenteded Fed tinkering.

[TexasHusker]

I think I may have been obtuse.

This is a Saving Advice forum. You always bad mouth saving in favor of real estate investing. Go away.

Consider it done. Happy New Year!

[disneysteve]

Who only knows. My point is that nothing goes straight up.

Agreed. The market goes up and down. Historically, the long term trend has always been up.

I fail to see why that makes 401k and Roth accounts a bad idea, though. Or why it makes real estate a better idea.

[rennigade]

Agreed. The market goes up and down. Historically, the long term trend has always been up.

I fail to see why that makes 401k and Roth accounts a bad idea, though. Or why it makes real estate a better idea.

There are still those who think having an asset they can touch is better than having numbers floating around in cyber space. Even with things you can touch it didnt help millions of people who lost those items during the 2008 housing crash and it didnt help those who still are in possession of those tangible assets who are still underwater by $100k+.