Brokerage firms have something similar to FDIC insurance, but I’ve forgotten the specifics, and it doesn’t protect from Market losses, just in case of brokerage bankruptcy—sorry I can’t remember more, but I’m sure an internet search could yield more info. I don’t have time to do that right now though.
I have been forced to get a pair of glasses in order to drive, and have delayed going because of CV—it was pretty rampant in the town where I have to go. They are finally closer to normal so I have to strike while the striking is good.
For my own retirement funds, I basically have 2 options. I have a self directed IRA—that’s for picking bank stocks, and cars mainly-the 2 subjects I understand the financials for better than others. I employ the Peter Lynch method as described in his book - beating the street.
Buy low sell high basically. So I search for value stocks in good companies that have been beat down unfairly. They have to have a P/E ratio of 15 or less, good cash flow, limited debt, and value less than book. When the stock has reached the goal per share, or doubled in value, I sell.
When the price doubles, I sell half-that basically returns my principle. Then I let the rest ride, unless there’s a reason to sell. For example, when the market reached unprecedented Highs in 2007, I was searching for stocks to invest in—I found none. The market was very overpriced.
So I sold half of all my holdings and moved into US Treasury/money market. The rest I let ride and it has come back to where it was—but meanwhile I had cash from Money Market if I needed it for emergencies. (Note for today please get some cash to keep on hand in case of Atm or bank holiday etc.).
Any portfolio should have hard assets of around 5-10%—maybe more in current day situation. That’s land(in addition to your home), precious metals usually, but ammo, food etc. & anything at this point that could be subject to inflation down the road that you might need in an emergency could be a good option too.
The other thing I did was to invest in a variable annuity that guaranteed 6% interest. So if the market tanked, the principle + interest was guaranteed if I wanted to annuitize it and it is also guaranteed as a death benefit to my beneficiaries. That is something that was good to do when I was quite a few years from retirement. Not something I would do with money to invest today. Of course that is also dependent on the financial strength of the company.
Retirement funds just have to be monitored, and given your best guess as to what it happening take quick corrective action when needed. With what we are facing with a financial reset—it’s just an uncertain thing, so diversity is important, as is preparing for hard times. Hope this helps. There is not real 100% clear road map right now unfortunately.
Thank you so much, greeneyes.