Market is doing pretty well at the moment, FYI. Suggest you leave aside your hysterical fears. Anyone who tries to make their investment planning based on a single administration (and thus guided more by irrationality than realism) is most likely going to lose money. |
PP didn’t say they were changing investment strategy. They’re just looking forward to moving past the moron in office. |
DH and I will retire in 4-5 years regardless of who is in office, but we will rest easier knowing America is back on track. We are really hoping health care is not further hollowed out in the intervening time. |
It crashed in 2020 during Trump's covid crash. So yeah, it's was way down, |
Most people here apparently don't know Jack about investing or history. The stock market can post negative returns for over a decade. Yes, this may or may not be technically a "bear market." But you're smoking some good stuff if you think a year or two of bonds is going to give you much protection during really bad times. |
+1 we will retire in 5 years and the first 4 years of spending is not in the market, it's in high yield savings to keep up with inflation. But we are still investing for the long term in stocks. My current 401k contributions all go to stock. |
And our overall allocation is about 60% stock so we're also covered in the bond portion for the risk of a longer-term down market. |
We put everything in funds focusing on preservation of capital in 2019. Turns out it worked well for us. |
Be more explicit, you put everything in bonds for CDs? Why on earth would you do that?? Diversification is important so all in one thing usually isn't the best choice. Market is at all time highs and folks are worried about Trump and his tariffs. Don't you realize he will be gone in 3 years and the tariff talk is all white noise. As a long time stock market observer, you guys just watch too much news and are easily influenced by all the pundits. I know Trump is all on your minds, but follow company earnings , the FED moves, unemployment, and measures of GDP. Just relax, the market will fluctuate, Trump will talk, and the sun will rise the next day. Having 1-2 years of liquid assets not in the market is a great hedge while retired, esp if you anticipate the need to spend this cash. You don't want to have to sell in a bear crisis or hug market drop. |
1-2 years of liquid assets is something. TIPS ladders are a standard strategy that works well. You buy TIPS with staggered maturity dates - for example, bonds maturing in 1, 3, 5, 7, and 10 years. As each bond matures, you either spend it because the market is down and you need it, or you reinvest the proceeds into a new TIPS at the long end of the ladder, maintaining the structure. |
My parents really took a risk and did it right. After a very successful middle class life they built in the US they went back to Colombia and spent ages 55-70 there. They lived quite well off my father’s VERY modest pension. In the meantime their retirement savings remained untouched and nearly tripled. They saved their house here in the US and rented it out and then 1031x it into a new property in a very nice retirement community, which they just moved into.
I’m not sure what the market is, but they seem to have played it well and have lived the 2nd half of their lives very well. |