Stock Market Loses and Rertirement Benefits

July 8, 2022 | Wuli

[Wuli]

Stock market values have collapsed 20% this year compared to last.

Many 401K and defined contribution pension plans have retirement benefits, or some portion, pegged to stock values.

When those plans start registering their stock losses, there will be some decline in pension benefits for some segment of retireees.

As that takes place that demographic will make adjustments including reduced spending in some areas.

While that will be somewhat deflationary, it will also support an advancing recession.

Together that could complicate some expected additional Fed Reserve rate increase(s).

Its all a hot mess.

In 2009, my Pension benefit lost $400+ a month coming out of the 2008 financial crisis.

[wastedyears]

Buy, DRS and hold Gamestop.

[Bayard]

Everyone hold on to your butts...

[Bayard]

Hold GME but watch for sell off after the split. Maybe write cc’s if there is a surge.

[Disestablishmentarian]

I’m buying small-cap techs. They’ve been in an unmitigated bear market since the start of the Braindead administration.

Appears to me they might be finally bottoming out.

Time to buy stocks is when they are cheap.

[Bobalu]

My account has lost an amount that not so long ago would have seemed like a fortune to me..

I dread checking the current status of that account..

Thanks a lot SloJoe

[humblegunner]

Stock Market Loses

Did you mean "losses"?

[qwerty1234]

Sold almost everything (80% cash now) when SlowJoe took office - this was very predictable.

[z3n]

buy buttcoin



I can't figure the market.
If you asked me 3 months ago I would have said buy crypto and hold it until the stocks crash, then sell them and buy the stocks low. But it turns out they both started slumping. It's not a crash. Just a slow motion train wreck

All the 401ks are acting like a buffer I think. The market wont crash like 1929 because of them. It will just slide. All the day traders and fund managers moved their own money into safer investments, but the 401k money of all the sad saps are still sitting in all the same old funds.

If you're retiring in the next few years, probably still time to make a move. If you are in it for a decade or more, no way you should take any loss.

[BipolarBob]

PXD, MU or DVN. Devon pays over 6% interest and will snap back. maybe XOM.

[Bayard]

There’s going to be a lot of collateral dammage in the market in a recession, especially if it is big.

I would be clear on the fundamsntals of any tech business and its market history at this point.

We’re no where near a growth market right now.

[cherry]

I am like most Americans just a worker bee now retired...no govt pension just what I saved and my company contributed too, which isn't much....

I recently moved my "portfolio" to an Ed Jones account from Fidelity....

but honestly, I don't have really down home advice...

are most freepers still in the market?

[Wuli]

My pension fund went to a 60% “cash”, 20% global market index funds, 20% high grade corporate & utility bonds, and lately have bought back just few solid (receesion resistant) things they think have bottomed. I should be getting notice of the next market based update/change soon.

[Wuli]

yes - losses

[BipolarBob]

Biden should pay for grief counselors at the gas pumps and brokerages.

[SamAdams76]

A couple years ago, many of my co-workers (including myself) were bragging on their 401ks and able to retire anytime they wanted.

Then the election got stolen and so most of us are going to have to work a few years longer. Maybe a lot of years longer.

Stolen elections have consequences. The puppet Biden is driving the economy into the ditch.

[Drago]

All to be expected with the massive government spending, Fed Reserve “QE” and “stimmy checks” since 2008. All those $$$ had to go somewhere and they certainly didn’t go into CD’s/MM accounts at 0.05%! Stock market is still way overvalued...needs another 25% haircut.

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

https://tradingeconomics.com/united-states/money-supply-m2

[Bayard]

Watch for recession behavior, its an options writer market right now.

[HKMk23]

“...grief counselors at the gas pumps and brokerages.”

^^^ THIS ^^^

I’ll take blonde, about 5’-4”, 38-24-36; preferably country-raised with just a little bit of a southern twang...

[Republican in occupied CA]

If you don’t know how to balance a portfolio relative to your risk tolerance and needs, pay someone who does (flat fee is nearly always better).

Being 60 and two years from retirement, inflation is a much greater worry to me than recession; for someone 20 years younger with a job that may well have wages that go up inflation might be much less worrisome than recession.

Know your tolerance for not only risk, but the timeline involved; I don’t need my 401K for another 10 years, I expect the market to be well above where it is now, but in about 7-8 years I’ll start pulling out of it and into cash-type instruments.