Stock Market & Retirement Planning

[Reframmellator]

I'm sure there will be competent leadership taking over the fund. What is your potential advisor suggesting?

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They tend to a mix of low-cost funds and individual stocks to provide diversification. I'm waiting for a specific proposal from them, but they indicated they had a Schwab/Laudus fund they preferred in that space. Price has a great record with their funds, but I worry about the successor at PRNHX achieving success in his previous fund by a lot of turnover. That will be hard to do with a fund as large as PRNHX. In any case, I thin I will ask them to retain at least a small holding, so I can buy back in again if I want to for any reason.

 

[Vortex]

It's been a wild ride since I bought NVDIA about 6 months ago but the stock is finally recovering. I hope my red figures turn black soon. Unfortunately, 3M (a rock solid performer and Dow member) dropped 13% yesterday. Ouch!

 

[tahoebum]

It's been a wild ride since I bought NVDIA about 6 months ago but the stock is finally recovering. I hope my red figures turn black soon. Unfortunately, 3M (a rock solid performer and Dow member) dropped 13% yesterday. Ouch!

I had a bunch of 3M after working there for over 2 decades and luckily sold it all in October. Painful drop for such a blue chip stock.

On the flip side, Apple surprised a lot of people with their earnings yesterday. It’s up over 5% pre-market. It looks like they are finally shifting away from just being the iPhone company. 53% of their sales last quarter were from iPhones, down from more than 70% just a couple years ago.

 

[JB]

I had a bunch of 3M after working there for over 2 decades and luckily sold it all in October. Painful drop for such a blue chip stock.

On the flip side, Apple surprised a lot of people with their earnings yesterday. It’s up over 5% pre-market. It looks like they are finally shifting away from just being the iPhone company. 53% of their sales last quarter were from iPhones, down from more than 70% just a couple years ago.

It definitely surprised and as a shareholder I love that. Although it was down 2% yesterday, so the up 5 is not quite the same since the market had been trending up for a stretch. There is quite a bit talked about this morning that 225 is the number and when it hits there we will see a slide.

 

[tahoebum]

It definitely surprised and as a shareholder I love that. Although it was down 2% yesterday, so the up 5 is not quite the same since the market had been trending up for a stretch. There is quite a bit talked about this morning that 225 is the number and when it hits there we will see a slide.

It’s up from $142 on January 3rd which my wife and I are relieved about. As a percentage, we still have too much AAPL in our portfolio, especially at our age and me being retired(largely due to owning a lot of aapl and goog the last 20 years). I actually guessed wrong and sold some yesterday at $201 thinking earnings might disappoint. We will likely liquidate half of our position in the next 6 months. I do believe 24 months out the stock will hit $300 but diversification is the key. We’d also like to be able to sleep at night. :act-up:

 

[Vortex]

Stock Market & Retirement Planning

Stock Market & Retirement Planning

I had a bunch of 3M after working there for over 2 decades and luckily sold it all in October. Painful drop for such a blue chip stock.

On the flip side, Apple surprised a lot of people with their earnings yesterday. It’s up over 5% pre-market. It looks like they are finally shifting away from just being the iPhone company. 53% of their sales last quarter were from iPhones, down from more than 70% just a couple years ago.

What division of 3M did you work in? I was work meetings this week and Steve Case (former AOL CEO) addressed transformation. He mentioned 50% of Fortune 500 companies aren’t on the list 25 years later. There’s a host of reasons and the centerpiece of his talk involved preparing, anticipating, accepting, and promoting disruptive technologies. GOOG & APPL and Sears and Kodak are examples from both ends of the spectrum. Couldn’t help but wonder if 3M is closer to the latter than the former. I sure hope not.

My grandparents started buying 3M in the 1950s and gave stock to all their grandkids for graduations and Christmas. I’ve never sold a share of 3M and it’s my largest single holding. I can handle Nvadia swings but 3M is supposed to be a bedrock asset.

 

[Northerner]

I have scenario I'd like advice about.

Person has:

$40k IRA
$30K cash in checking.
A mortgage on house @$800 a month
They make about $2200-2500 a month after taxes.

Would you advise this person to sell their house (it's been valued anywhere from $170-200k) and they have about $50k in equity in said house.

Person is a single male, late 30s, with no kids.

Would you tell the person to downsize their house, or?

 

[Gyro25]

I have scenario I'd like advice about.

Person has:

$40k IRA
$30K cash in checking.
A mortgage on house @$800 a month
They make about $2200-2500 a month after taxes.

Would you advise this person to sell their house (it's been valued anywhere from $170-200k) and they have about $50k in equity in said house.

Person is a single male, late 30s, with no kids.

Would you tell the person to downsize their house, or?

Im no financial expert, but land/property is an ongoing asset. If I could have done it (by laws and funding prevented it), I would have rented out my old condo and continued to build equity into it. At 800/mo that is minimal, and if that 800 could easily be fetched from renters I would buy a smaller place is that was what I wanted, rent original to a family and continue to build equity, then sell it down the road or move back in there if I were to make a family.

Friend's mom does just that, she basically rents out the 2nd portion (it's a mother daughter I guess) and covers nearly all her mortgage, and now that she is spending half her time out of state with her other kid she could rent out the main house and buy a smaller cheaper 55+ house for next to nothing, have minimal maintenance etc., And continue to have income from the big house from 2 sets of renters

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[Northerner]

Im no financial expert, but land/property is an ongoing asset. If I could have done it (by laws and funding prevented it), I would have rented out my old condo and continued to build equity into it. At 800/mo that is minimal, and if that 800 could easily be fetched from renters I would buy a smaller place is that was what I wanted, rent original to a family and continue to build equity, then sell it down the road or move back in there if I were to make a family.

Friend's mom does just that, she basically rents out the 2nd portion (it's a mother daughter I guess) and covers nearly all her mortgage, and now that she is spending half her time out of state with her other kid she could rent out the main house and buy a smaller cheaper 55+ house for next to nothing, have minimal maintenance etc., And continue to have income from the big house from 2 sets of renters

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Mortgage is actually about $600 - escrow ed 8naurancw and property taxes are about $200/m9nth

 

[Gyro25]

Mortgage is actually about $600 - escrow ed 8naurancw and property taxes are about $200/m9nth

I would count/post mine together also because it's escrowed as well.. still if rent in your area is above 800/mo I would find good tenants and they would get a deal while you get your mortgage covered and make a little extra.

Jealous on the low payments, mine is total 2200/mo thanks to jerseys crappy taxes (6500/yr for me).

If you can afford two mortgages (when rental is not occupied) then go for it. But if no desire to be a landlord why sell when you have good equity in it, will spend money on closing costs and such, etc.

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[Northerner]

I would count/post mine together also because it's escrowed as well.. still if rent in your area is above 800/mo I would find good tenants and they would get a deal while you get your mortgage covered and make a little extra.

Jealous on the low payments, mine is total 2200/mo thanks to jerseys crappy taxes (6500/yr for me).

If you can afford two mortgages (when rental is not occupied) then go for it. But if no desire to be a landlord why sell when you have good equity in it, will spend money on closing costs and such, etc.

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House kittycorner. from this one rents out @about $1600/month.

The house w/$800 mortgage is about 2k Sq feet, with a carpeted basement.

 

[JB]

Stock Market & Retirement Planning

Stock Market & Retirement Planning

Wow did Apple get killed today.
The slide continues...

 

[mikeg_74]

Wow did Apple get killed today.
The slide continues...

That was a pretty big SC ruling against them today

 

[JB]

That was a pretty big SC ruling against them today

Yeah it was. It’s been sliding for a few days, but this was the big one.

 

[Gyro25]

Ughhh my apple stock took a good hit in that.. not enough to make me sell, but maybe I'll keep an eye out for a low point and buy some more as it rebounds

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[MagicSpell]

Was wondering how prevalent my employer 401(k) matching policy is/was in the industry. A few years back my employer changed the matching contributions to our 401(k). As far as I can tell, this change allows them to earn interest on the matching monies at the expense of the employees. Here's the matching policy:
They match up to 5 or 6% of eligible compensation (depending on your date of hire) that the employee defers plus an additional 1,2, or 4% (depending on what pension plan you are under) automatic contribution (whether the employee participates in the plan or not). The rub is they don't make the match until 12/31 each year (no matching dollars are made until the last day of the year). Also, to receive the match or automatic contribution you must be employed on Dec 15th of that year (with a few exceptions most notably retirement).

So, my question is how common is it for employer matches to NOT be made until the end of the year? It seems that in a good market year the employee loses an appreciable amount of interest. Of course, in a down market year the match at the end of the year could help offset some losses.

 

[Girardcorp]

It’s not that unusual in my experience, but a really ****** thing to do to their employees. You are losing out on growth of so much money...

 

[tahoebum]

Ughhh my apple stock took a good hit in that.. not enough to make me sell, but maybe I'll keep an eye out for a low point and buy some more as it rebounds

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I’m in the own it, not trade it camp on Apple. It has doubled in the last 3 years and 10 years ago was at $17 split adjusted so you have to keep things in perspective. IMO, we could easily see it double in the next 3 years but we will absolutely see it lower this year than the $190 price it is at today. You have to have a strong stomach to hold Apple long term but I’m happy we have been in the stock since 2000. I don’t think suddenly everyone will abandon there iPhones and Apple ecosystem and run to Android. If the stock is good enough for Warren Buffet, it’s good enough for me.

 

[Gyro25]

Was wondering how prevalent my employer 401(k) matching policy is/was in the industry. A few years back my employer changed the matching contributions to our 401(k). As far as I can tell, this change allows them to earn interest on the matching monies at the expense of the employees. Here's the matching policy:
They match up to 5 or 6% of eligible compensation (depending on your date of hire) that the employee defers plus an additional 1,2, or 4% (depending on what pension plan you are under) automatic contribution (whether the employee participates in the plan or not). The rub is they don't make the match until 12/31 each year (no matching dollars are made until the last day of the year). Also, to receive the match or automatic contribution you must be employed on Dec 15th of that year (with a few exceptions most notably retirement).

So, my question is how common is it for employer matches to NOT be made until the end of the year? It seems that in a good market year the employee loses an appreciable amount of interest. Of course, in a down market year the match at the end of the year could help offset some losses.

My employer does a one time lump sum in the spring as well, and it's a base 2% , plus a percentage of my contributions I think.. maxing at 4% I believe based on years of employment. It is a large system that people stay 20+ years at, heck my nurse has been there 45 years, so the yearly contribution and the period until being fully vested doesn't rub people the wrong way.. not sure why they do it, just always have had it that way

I’m in the own it, not trade it camp on Apple. It has doubled in the last 3 years and 10 years ago was at $17 split adjusted so you have to keep things in perspective. IMO, we could easily see it double in the next 3 years but we will absolutely see it lower this year than the $190 price it is at today. You have to have a strong stomach to hold Apple long term but I’m happy we have been in the stock since 2000. I don’t think suddenly everyone will abandon there iPhones and Apple ecosystem and run to Android. If the stock is good enough for Warren Buffet, it’s good enough for me.

Oh I wasn't going to sell. I had 7 shares before the last split now 14 so I've more than doubled my investment, just contemplating when to buy more or find other stock.. I should've bought more Sony (SNE) as well as that is up nearly 200% for me

I just never sell when it starts going down and I miss out on that gain.. I had bought stock in some company at $12/share, it went up to $35 or so, and I didn't pay attention and it's down to $3/share now ... Derp .. never really knew how to navigate the market, just kind of winging it lol

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[tahoebum]

My employer does a one time lump sum in the spring as well, and it's a base 2% , plus a percentage of my contributions I think.. maxing at 4% I believe based on years of employment. It is a large system that people stay 20+ years at, heck my nurse has been there 45 years, so the yearly contribution and the period until being fully vested doesn't rub people the wrong way.. not sure why they do it, just always have had it that way Oh I wasn't going to sell. I had 7 shares before the last split now 14 so I've more than doubled my investment, just contemplating when to buy more or find other stock.. I should've bought more Sony (SNE) as well as that is up nearly 200% for me

I just never sell when it starts going down and I miss out on that gain.. I had bought stock in some company at $12/share, it went up to $35 or so, and I didn't pay attention and it's down to $3/share now ... Derp .. never really knew how to navigate the market, just kind of winging it lol

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One of the smartest things I ever did for my 401k was move everything to the S&P500 index fund. It gives you diversification and you don’t get killed with fees. For my company it was only .04% per year for that fund while many of the other funds charge .4-1%. Those fees can wipe out a large chunk of your nest egg over 30+ years. IMO, an S&P 500 fund mixed with some indexed bond funds will in the long term beat 90% of the “experts” who make a living as financial planners. We are more conservative now at age 54 but the principles laid out by Graham, Bogle, and Buffet are as true today as they ever were.

 

[Northerner]

I'm wondering what some of your opinions are.*

I have an IRA worth tens of thousands. I also have tens of thousands in my bank account.


If society broke down and TSHTF, those things will be worthlesd.


What would you do with it? An invested told me even fiat money will be worthless if society breaks down.


So....should I take all of it put and invest it in ammo? In land? In weaponry?


What would some of you do with it? My gut tells me land an hour away from the Cities would be ideal in case of societal collapse..


If society broke WHAT WOULD BE WORTH THE MOST?

Opinions?

 

[Northerner]

Would you get out of the IRA altogether?*Obviously I'm coming at this from a different perspective than most here. Presidential candidate Kamala with her crazy talk has got me thinking another collapse is shortly down the road.

What about the bank account that produces no interest. Would you take most of, let's say $50,000, out? Stash the fiat money somewhere, or completely invest in precious metals?

 

[Girardcorp]

I would buy some land a couple hours northwest of here with a good water supply and build a cabin with one of those Tesla solar roofs to be completely off the grid.


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[Northerner]

Definitely leaning towards land.

 

[Greg Kulbick]

I would buy some land a couple hours northwest of here with a good water supply and build a cabin with one of those Tesla solar roofs to be completely off the grid.


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The government will never let you completely off the grid.