Stock market question for the long in tooth crowd

[Zach's Grandpa]

With 75 almost in the rear mirror and 80 coming in sight I don't think there is time to recover from a sizeable hit. So what are you older folks looking at as being the mark or sign to convert to bonds or cash? All of ours is in mutual funds type investments and has really done well over the last few years. I know that there will be a crash at some point and I surely don't want to see my portfolio cut in half. I'm kind of thinking when the DOW stays over 35,000 for a month maybe it's time to cut and run. Interested in others thoughts who are in the "too old to make a comeback" group.

 

[woodmoose]

"too old to make a comeback" group.

well,,,I'm not 75 but the "to old to comeback" is relative,,,, and since my Mom passed at 47, and my sperm donor at 64 I figure I only have so many years left since I'm 59,,, or I could live to 80 aggravating folks

the time to convert is when your nerves, stomach, desire, or whatever you want to call it says "this is enough",,,,

ain't no guarantees that if you pull out at 35,000 that it won't rise to 36,000 or higher,,, or it will fall,,, ain't no telling in the short term (5 years)

so ain't no shame it pulling at your chosen point,,, 35k sounds good - now might be good (ain't nothing saying the slide hasn't already started)

 

[JoeH]

 

[30/06]

I’d speak to an advisor and get a professional opinion. There are a lot of tools or ways to insulate out there that may meet your needs. Issue is finding an advisor that you can trust and has your best interest in mind.

 

[BarSinister]

Based on what today looks like I would say yesterday!

 

[Zach's Grandpa]

Based on what today looks like I would say yesterday!

Yeah it don't look good today. Hopefully it will surge back up like it's been doing, if it does I'm bailing out.

 

[jug]

I guess we all gonna take a hit . Just like Obama all over. Damn shame that a large portion of the electorate have the iq of a friggin rabbit.
My wife is gonna make a call tomorrow to our Edward Jones financial advisor. He wasn't worried back in the Spring about Biden.
I bet he is changing his tune now.

 

[MJ74]

I adjust my allocations every year so I gradually shift to bonds.
You could always just put your money in a target date fund that does that for you.

We are due for a big drop and it will suck but hopefully it will return quick.

 

[GSOHunter]

Keep 2-3 years of cash on hand and then you don’t really have to worry about most of the historic pullbacks.

 

[KTMan]

High yield tax exempt municipal bonds?

Im only 50 so might not qualify to answer your question (plus no investment training). But kinda a hobby to read and study investing. Like playing real life monopoly. Also, plan to be retired next year at this time. So looking at best options myself.

But heres my take. Things I’ve learned the last year dealing with everything that could be thrown at one person in a year (Nursing homes, funeral homes, hospitals, rehabs, taxes, you name it).

1, At 75 (if I make it) I plan to broke, at least on paper. Crazy the things that can be denied if you got money.
2. Nursing homes will make you broke if your not already. Service is the same rich or poor. And the longer you live the higher chance you will spent time in one.
3.Give the money children and grand children while you can enjoy watching them enjoy the money. I plan on my kids benefiting my years of hard work not a nursing/assistant living.

My guess is you own everything you have and have minimum bills. So how much do you need? Convert everything into cash thru Tax free gifts to Dan and Zach ($30000 annually).

 

[Zach's Grandpa]

KTMan is so right about nursing homes. Call it what you want but planning ahead to have nothing when that time comes is the smart thing to do. You get the same care whether you pay or Medicaid pays and there are very few people that can afford to pay. $7000.00 and up per month is not affordable and Medicare does not pay for the room.

 

[Zach's Grandpa]

My guess is you own everything you have and have minimum bills. So how much do you need? Convert everything into cash thru Tax free gifts to Dan and Zach ($30000 annually).

Good idea but my two daughters and the other two grandchildren might not think so. LOL

 

[Vannoyboy]

Cash is going to take a hit with inflation. Spread it around so you can worry about more , smaller problems. Live each day like it is your last, if you start running out of money, adjust your appetite.

 

[nckeith]

Well the old saying is , once you’ve won the game stop playing. So I’d say at your age, adjust your asset allocation to a % that makes you sleep well.

 

[Mr.Gadget]

KTMan is so right about nursing homes. Call it what you want but planning ahead to have nothing when that time comes is the smart thing to do. You get the same care whether you pay or Medicaid pays and there are very few people that can afford to pay. $7000.00 and up per month is not affordable and Medicare does not pay for the room.

If it gets to that point of paying 7000 plus to sit in a nursing home I will pull the plug on that.
What quality of life is that?

God will just need to understand. I ain't sticking around for that show.

 

[Zach's Grandpa]

If it gets to that point of paying 7000 plus to sit in a nursing home I will pull the plug on that.
What quality of life is that?

God will just need to understand. I ain't sticking around for that show.

That's the cost now days for an average type nursing home. My Mom was in a slightly above average facility and it was $7750.00 per month.

 

[Mr.Gadget]

That's the cost now days for an average type nursing home. My Mom was in a slightly above average facility and it was $7750.00 per month.

Point still stands....
I will not be one of them paying that or letting my family do that.

 

[ncscrubmaster]

I'm not paying that its just not how I'm going to live. I told my family when they get to the boat ramp at the beach and I didnt bother to pull the trailer out or park the truck they will know whats going on.

 

[Rubline]

That's the cost now days for an average type nursing home. My Mom was in a slightly above average facility and it was $7750.00 per month.

We put our Father in one back in May and due to his condition he requires specialized care and it's $9900.00 per month.

 

[Nana]

I am 56 but cautious by nature. I converted my 401k from 80/20 stocks and bonds to 60/40 bonds/stocks last year. I manage that myself. I have my pension cashout (which is where the bulk of my retirement savings are) split up with 15% in cash and the rest in a professionally managed IRA. So far it is on track to make me about 11% for 2021 (after fees). Target is 6%. This management company's strategy is to get out of the market early and get back in early. We might miss some upside but it is worth it for peace of mind. And his idea is you may miss out on the top side gains but you get it back by jumping back in early.

 

[woodmoose]

I am 56 but cautious by nature. I converted my 401k from 80/20 stocks and bonds to 60/40 bonds/stocks last year. I manage that myself. I have my pension cashout (which is where the bulk of my retirement savings are) split up with 15% in cash and the rest in a professionally managed IRA. So far it is on track to make me about 11% for 2021 (after fees). Target is 6%. This management company's strategy is to get out of the market early and get back in early. We might miss some upside but it is worth it for peace of mind. And his idea is you may miss out on the top side gains but you get it back by jumping back in early.

not me,,,, I'm in for the roller coaster ride,,,, told myself when I put money into these that "it was gone",,, so whatever is there is all good

it's made me a tidy sum,,, and will make more over the next 20 years,,, if it drops some I let it sit,,, it will come back, always has,,,

and when one day when the market truly dies, well then I expect I'll have bigger fish to handle that what is in an account somewhere,,,,

and if any is left, some kid at St Judes will get a surgery they need,,, or my Wife's new boy-toy will live large!!

 

[BarSinister]

not me,,,, I'm in for the roller coaster ride,,,, told myself when I put money into these that "it was gone",,, so whatever is there is all good

it's made me a tidy sum,,, and will make more over the next 20 years,,, if it drops some I let it sit,,, it will come back, always has,,,

and when one day when the market truly dies, well then I expect I'll have bigger fish to handle that what is in an account somewhere,,,,

and if any is left, some kid at St Judes will get a surgery they need,,, or my Wife's new boy-toy will live large!!

Me too.

When RONA hit I thought about moving it early on but decided to ride the wave. I went a LOOONG time without looking at it. By the time I did it wasn't too bad. It has since recovered nicely.

 

[turkeyfoot]

Point still stands....
I will not be one of them paying that or letting my family do that.

That's what lot people think until a stroke puts them helpless to make that choice and bam your in a nursing home and nothing you can do about it. Honestly its best to think it through and have better plan because life is often a crap shoot

 

[KTMan]

If it gets to that point of paying 7000 plus to sit in a nursing home I will pull the plug on that.
What quality of life is that?

God will just need to understand. I ain't sticking around for that show.

That all sounds good until your there. Just pulling the plug does not mean you die. My mom was in a rehab/assistant living facility. Cost was over $11,000 month.

My parents worked hard, invested wisely and were very frugal with their money. My father always said that when they retired they would not have to ever worry about money. But they did.

Hindsight he learned he should have went on all those trips mom wanted to go on. He learned he would been in much better position not having money. Luckily he at least protected his home and farm. But did nothing to protect his investments.

 

[Nana]

not me,,,, I'm in for the roller coaster ride,,,, told myself when I put money into these that "it was gone",,, so whatever is there is all good

it's made me a tidy sum,,, and will make more over the next 20 years,,, if it drops some I let it sit,,, it will come back, always has,,,

and when one day when the market truly dies, well then I expect I'll have bigger fish to handle that what is in an account somewhere,,,,

and if any is left, some kid at St Judes will get a surgery they need,,, or my Wife's new boy-toy will live large!!

I did that starting when I got my first job. I put it in an S&P index and never even looked at the statements when they came. And made enough money to split it with Papa and still bounce back just fine. Only got cautious in the last few years when I knew I could not keep going at Farm Credit and was not sure I could get a job with comparable pay. Now I that I have I am just a chicken! Never been a risk taker. LOL about the boy toy. Mine will likely go to my special needs bro or his family when I go. T won't need it.

That being said, I may play around a bit with my 401k as the rest is well-managed.

I agree that it will always come back, and if not, there will be bigger problems........

 

[Nana]

That's what lot people think until a stroke puts them helpless to make that choice and bam your in a nursing home and nothing you can do about it. Honestly its best to think it through and have better plan because life is often a crap shoot

That is pretty much what happened to my Dad. No nursing home, but lost everything (and he had a lot) due to health issues. Thankfully he went from a healthy wealthy stressed out contractor to a pretty happy broke old dude with heart/stroke issues in a trailer in the country pretty easily. Lived out his days (12 years after his heart attack/stroke at 55) on a catfish pond eating breakfast and supper at the same diner every day with no worries. Drove his own Cadillac to Duke for bypass surgery that he did not survive and went out on his own terms. I drove it home smelling his cigars and Old Spice and cried all the way.

 

[Mr.Gadget]

That all sounds good until your there. Just pulling the plug does not mean you die. My mom was in a rehab/assistant living facility. Cost was over $11,000 month.

My parents worked hard, invested wisely and were very frugal with their money. My father always said that when they retired they would not have to ever worry about money. But they did.

Hindsight he learned he should have went on all those trips mom wanted to go on. He learned he would been in much better position not having money. Luckily he at least protected his home and farm. But did nothing to protect his investments.

My vet hooked me up with the good stuff. Really has nothing to do with an electric plug.

 

[Mr.Gadget]

That's what lot people think until a stroke puts them helpless to make that choice and bam your in a nursing home and nothing you can do about it. Honestly its best to think it through and have better plan because life is often a crap shoot

Allready have a plan for that also.

 

[Greg]

not me,,,, I'm in for the roller coaster ride,,,, told myself when I put money into these that "it was gone",,, so whatever is there is all good

it's made me a tidy sum,,, and will make more over the next 20 years,,, if it drops some I let it sit,,, it will come back, always has,,,

and when one day when the market truly dies, well then I expect I'll have bigger fish to handle that what is in an account somewhere,,,,

and if any is left, some kid at St Judes will get a surgery they need,,, or my Wife's new boy-toy will live large!!

^ Exactly.

 

[KTMan]

Allready have a plan for that also.

Wish you the best on your plans. My parents plans were very well thought out as well. But when you wake up in the floor at 3:00 am with massive bleeding on the brain and never recovery makes it kind of hard for you to follow your plan. Then it falls on your love ones to make the decisions. n my case in all fell on me. The only decision I made was money would not be an issue for the best care for my mom.

But my parents could've done a better job protecting their investments and cash. As to the OP question I like "gifting" as a way to make sure my hard work goes to my family.