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Market Turmoil

JoonBee2002JoonBee2002 35 replies1 threads Junior Member
How's everyone feeling with the markets tanking? Does it change your decision, especially for "donut hole" families that don't receive need? If we have a U-shaped recovery, I'm seriously concerned for my retirement savings and college for my other kids.
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Replies to: Market Turmoil

  • jym626jym626 57689 replies3023 threads Senior Member
    THe market volatility is very unsettling. ITs being discussed in the "retirement" thread.
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  • JoonBee2002JoonBee2002 35 replies1 threads Junior Member
    Thanks- i'll go there.
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  • BunsenBurnerBunsenBurner 41286 replies479 threads Senior Member
    As someone who was in your shoes with tuition bills due in 2009, I feel your pain.
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  • JoonBee2002JoonBee2002 35 replies1 threads Junior Member
    @BunsenBurner - did you have to decide to go to a more expensive oos/private vs. going to the public?

    I work in the markets- I have seen our AUM significantly decline and our management fees/cash flow will obviously decline. I lived through this with the 2009 crisis because I worked at a startup. It was personally, financially painful.
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  • DadTwoGirlsDadTwoGirls 6537 replies1 threads Senior Member
    "Its being discussed in the "retirement" thread. "

    What is the retirement thread?
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  • 1214mom1214mom 5280 replies195 threads Senior Member
    I’m really worried about the market, and in my opinion it’s not likely to get back to where it was anytime soon. (I hope I’m wrong).
    My husband insisted we pull all of our money out of stocks in our 529s after the fall in 2008, so of course we never recovered those funds, and had to pay a lot more out of other earnings when our kids started college (2010, 12 and 14).
    I left my retirement money where it was back then, and it recovered within a couple of years. Our kids are all done with school, but this downturn is now at the point my retirement date will be impacted. (But I am glad it happened before I retire, so I can continue to work an extra year or so to rebuild a cushion).
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  • SybyllaSybylla 4918 replies59 threads Senior Member
    edited March 9
    The market was always going to correct, if it wasn't this, then it would have been something else. The personal debt level is higher than pre 2008 and many of the same issues have been replicated, maybe more car loans than home loans, but the home loan market is still over leveraged. Once again once home prices correct again people are left owing more than they can afford. The markets have been insane. What this might do is go past a correction if this situation is protracted.
    edited March 9
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  • SybyllaSybylla 4918 replies59 threads Senior Member
    The issue is going to be whether there IS work time left to top up. This assumption is what could be challenged if the post dip shrink in industries is beyond the time range of the retirees. Ask Japan how quickly things bounced back after their big recession, because really, they never did.
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  • mikemacmikemac 10582 replies154 threads Senior Member
    edited March 10
    1214mom wrote: »
    Our kids are all done with school, but this downturn is now at the point my retirement date will be impacted. (But I am glad it happened before I retire, so I can continue to work an extra year or so to rebuild a cushion).
    The risk is termed "sequence of returns". Much more detail online but the gist is if you sell stocks at lower prices due to a market fall early in retirement then you have to sell relatively more shares to fund those early years, which diminishes your lifetime retirement income. You are fortunate you can continue to work if you wish; for some people their employer may let them go or a health surprise may prevent it.

    One thing people can do, although it likely is too late for this market cycle, is to shift their holdings to a more conservative allocation (more bonds) in the few years prior to retirement while in an up market. We went to 70% bonds over the past 2 years; probably left some gains from the S&P500 on the table but now I expect the portfolio won't crash either.

    edited March 10
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  • CreeklandCreekland 6871 replies93 threads Senior Member
    Are we allowed to share specific stocks? I know I'd be interested in hearing more about companies actively working to combat Covid-19. We invested in Gilead Sciences when I found out they have a drug to help those with it in trial and it's one of the very few currently "up" in our portfolio. Of course, this is as I type and no guarantee about 5 minutes from now!

    I'd love to know about other companies trying to combat it. I don't care if they're up or down right now (we actually tend to buy when companies are down). I just want to know that they are trying to make a difference.
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  • ucbalumnusucbalumnus 83412 replies741 threads Senior Member
    mikemac wrote: »
    You are fortunate you can continue to work if you wish; for some people their employer may let them go or a health surprise may prevent it.

    Or their employer may go out of business during an economic downturn that causes losses in their retirement savings.
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  • BunsenBurnerBunsenBurner 41286 replies479 threads Senior Member
    This topic probably deserves a separate thread.

    @JoonBee2002 We survived the 2008-2010 periods financially because as soon as said kid got accepted into her LAC, I sold the stocks in her UTMA. Both Mr. and I had jobs, and we supplemented the tuition payments out of our salaries and a HELOC (which we paid off as soon as we could).
    Creekland wrote: »
    Are we allowed to share specific stocks? I know I'd be interested in hearing more about companies actively working to combat Covid-19. We invested in Gilead Sciences when I found out they have a drug to help those with it in trial and it's one of the very few currently "up" in our portfolio. Of course, this is as I type and no guarantee about 5 minutes from now!

    I'd love to know about other companies trying to combat it. I don't care if they're up or down right now (we actually tend to buy when companies are down). I just want to know that they are trying to make a difference.

    I don't think it would be prudent to discuss individual stocks and companies. There are other message boards for that kind of chat. :)
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  • doschicosdoschicos 26667 replies268 threads Senior Member
    It's nice to see some corporations stepping up and doing the right thing.


    Starbucks to offer catastrophe pay and mental health support to employees exposed to coronavirus
    From CNN

    Starbucks announced today that it will offer any employee diagnosed or exposed to COVID-19 up to 14 days of catastrophe pay.

    "I want you to know that here at Starbucks, you should never have to choose between work and taking care of yourself," Rossann Williams, president of Starbucks US, wrote in a message to employees.

    The catastrophe pay is an additional measure on top of sick pay and time off. If Starbucks employees are still unable to work after two weeks, they can access additional pay up to 26 weeks.

    Starbucks is also offering employees mental health resources, such as access to free counseling and a meditation app.


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  • emilybeeemilybee 14770 replies41 threads Senior Member
    Not selling anything at this time and funds are in the balanced kind for age. H still has set amount taken out going into his 403B.

    Tbs, I’m sitting on boodles of cash I’ve been “stockpiling” since 2017. I decided back then not to invest anymore in my accounts until after 2020 election.
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  • NJresNJres 6110 replies189 threads Senior Member
    The recent volatility has been crazy, and unsettling. How did people deal with the correction in late 2018? Granted, it occurred over 3 months, but from the market high in September 2018 to the low in December the S&P 500 dropped 21% from the high. (Check my numbers! I have a high intraday print 9/21/18 of 2942 and a low print on 12/26/18 of 2315.6.) The current pullback from a high print of 3398.2 on Feb 2/20/2020 will have to go to 2675 to match the 21% decline of 2018. The close today was 2741.8 so we are getting there, but not there yet. I am not real optimistic and missed getting out, so I am just going to ride it out.
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  • BunsenBurnerBunsenBurner 41286 replies479 threads Senior Member
    I did nothing. Just kept adding to my 401(k) as usual. If this goes bananas even further, I am thinking about front-loading my contributions.
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  • 1214mom1214mom 5280 replies195 threads Senior Member
    I did nothing in 2018, and I’m doing nothing now. Prior to the decline I’d been thinking about adjusting my asset allocation because of being close to retirement, but I am fairly conservative, and in my opinion you need to take some risk to keep up with inflation.
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  • eb23282eb23282 841 replies24 threads Member
    Golden buying opportunity, if you have the cash, which thankfully I do.
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