How much are you worth?

[No cats]

The key is diversification. We have money in developed markets that had been lagging. This is in the accounts that our broker manages (IRAs). I manage other accounts (after tax). Our broker insisted we diversify into non USA, I was unhappy but gave him rope. As it turns out, this year we are still in the positive despite the USA correction. The accounts that I'm managing are in the red, but it's money we don't need to touch.

 

[rvlifer]

The key is diversification.

Diversification is critical.

I used to use multiple financial advisors and split my money between them. They all preached diversification up to the point where they were being diversified lol

 

[Professor David]

Thanks but luck played a part. Could easily have gone the other way but there was less downside than upside risk in doing it. My financial guy was against it, but this isnt the first time i was right and he was wrong.

Since 1940 the avg length of time for the markets to move through a correction was something like 133 days so i probably have plenty more time to jump back in

These are not average times and totally unnecessary...but very predictable. The market does not like instability and chaos.

 

[rvlifer]

These are not average times and totally unnecessary...but very predictable. The market does not instability and chaos.

Agree completely. I dont consider anticipating this as in the top 10 of my investment "achievements"

 

[Professor David]

Agree completely. I dont consider anticipating this as in the top 10 of my investment "achievements"

You should still pat yourself on the back. My point is this down turn is most likely going to be much longer than the average of 133 days...more like 2008 unless smart choices are made soon which just isn't going to happen.

 

[8Muddypaws]

A plug nickel.

I have no idea what a plug nickel is.

Things must be working OK for me. Every year when I take my RMD it grows back and then some by the time I have to do it again. Even through the last four years.

 

[Professor David]

the last four years

We should be so lucky.

 

[No cats]

Were invested 60/40. Last 5 years IRAs returns are;

2019 = +19.3%
2020 = +9.2%
2021 = +10.9%
2022 = -15.6%
2023 = +16%
2024 = +10.1%

 

[rvlifer]

My point is this down turn is most likely going to be much longer than the average of 133 days...more like 2008 unless smart choices are made soon which just isn't going to happen.

Recession avg is 18 months in the same time period. Things arent normal right now so no telling what will happen this time

 

[Wasillaguy]

I am mostly ignorant to investing strategies. Sure, we have IRAs, and they're diversified.
We've always focused on spending far less than we bring in, and that's all it takes. It's math.

 

[Oldgator73]

Every year when I take my RMD it grows back

Same here. We don’t use investments for retirement purposes so it’s just sitting around making money.

 

[Professor David]

Recession avg is 18 months in the same time period. Things arent normal right now so no telling what will happen this time

Time to hunker down for the next few years. As usual, the pain will be on families living paycheck to paycheck

 

[rvlifer]

I wanted to retire early so i had to figure out how to grow my investments faster. Almost to social security then i can put them on autopilot

 

[Oldgator73]

I wanted to retire early so i had to figure out how to grow my investments faster. Almost to social security then i can put them on autopilot

I’ve been on autopilot for 10 years now.

 

[JudyJB]

I was not able to save until my kids were grown and out of college with real jobs. And I did not make anything when I sold my cond,o and I had no pension, but I did work two jobs (one was half-time college teaching, for quite a few years, so was able to save money in my 401 K. I did not quit my regular job and start collecting SS until I was 69. I continued teaching for the first 9 years on the road, so that paid off my rig and kept me in the black. Repairs always took up my RMD, but I never really had to dig into that 401K. In fact, I still have not had to take much out since I quit teaching online--and the fund still catches up every year. (Fingers crossed.)

Working two jobs for 22 years, and then for 9 years of traveling was a pain, as was working until I was 69, but it really helped me financially. I have known a few people who started out full-timing with unrealistic expectations on how cheaply they could live, and not taking into consideration medical insurance costs when they were not old enough to get Medicare. Most of them quit traveling.

And, in fact, I think teaching half-time until I was 78 really kept my brain alive. (At least I think it is still alive, but if it weren't, I probably would not notice anyway!) Ditto for handling my motorhome and continuing to travel keeping my body in better shape than if I had spent those years sitting in front of the TV in my recliner in my old condo!! On the other hand, I am getting a bit old, so I am thinking of buying a condo and retiring from full-timing in about a year--sooner if interest rates and prices get a little better. Being in good health is what really makes us wealthy.

 

[Ernie n Tara]

I've been fortunate in staying reasonably healthy and having the ability to accomplish most things I attempted. I grew up in a turbulent family so I had no illusions. Dropping out was not very bright, but I studied and put in a lot of midnight hours working until I was 71 (Tara is younger and so needed Insurance.)
Today we have nearly 65K in Social Security income (working past 65 is a great investment) plus a reasonable nest egg. Unfortunately, we now have the habit of living frugally so the egg keeps growing. We may have to endow a home for unwed cats to avoid enriching the already well off kids!
Ernie

 

[DonTom]

I wanted to retire early so i had to figure out how to grow my investments faster. Almost to social security then i can put them on autopilot

I didn't want to retire at all, I enjoyed my job. But I was maxed out on my benefits, and I was working for less than free! IOW, my income increased when I retired.

On the downside, my deferred comp. I would have been much better off if I paid full tax on it while I was working.

But I didn't go broke over it.

-Don- Reno, NV

 

[Ernie n Tara]

Update
I just started on my taxes for the year and noted that the SS income has now exceeded $80 k! one **** of a good investment for us.
Ernie

 

[Boat Bum]

I wouldn't call SS an investment.

 

[DonTom]

Update
I just started on my taxes for the year and noted that the SS income has now exceeded $80 k! one **** of a good investment for us.
Ernie

You need to explain that one, because:

The very max payout from SS is $61,296.00 per year in year 2025. $5,108 per month times 12=$61,296.00.

See here.
"The average Social Security benefit was just $1,979 per month for retired workers in January 2025. But Social Security's wealthiest beneficiaries get a lot more. The max monthly benefit in 2025 is $5,108 per month. That adds up to more than $61,000 per year."


-Don- Auburn, CA