Posted on 09/28/2022 10:53:42 AM PDT by quikstrike98
Well, we just had our weekly team meeting. I work for a very large corporation. We were just told that they will be recalculating retirement lump sum payments due to inflation, and depending how things are calculated, if we retire after Jan 1 of next year, we could lose up to 30% of our savings. You read that right, 30%.
Thanks Commierats!
“if you are close to retirement you’re not supposed to be invested in volatile instruments.”
I just turned 53. At the beginning of the year I pulled my investments in my 401k back to conservative instruments. Bond and income funds. This applies to our corporate pension, and IRS rates. See the email text I posted above.
that’s sound advice in normal times, have you checked the price of bonds recently ?? Since interest rates and bond prices move in the opposite direction people who own bonds have been crushed in the last few months, there is no safe haven in today’s market, everyone is getting crushed.
That’s part of the plan. To render our savings and assets worthless. Watch how the ruling elite becomes super rich at the same time.
I warned a couple of people I was close with to not put all their retirement plans into one basket, I was laughed off, about 4 months after I was laid off, the company sold out to another company who only assumed their debt and screwed the stockholders out of 100% of their stock, meaning all the stock employees had held was now worthless.
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I heard of a somewhat analogous situation where an investor had all their money in Bank of Boston. The broker suggested diversifying, but they insisted on holding everything on BoB. How could they go wrong? Bank of Boston was one of the oldest banks in country. Then the GFC hit and BoB stock headed toward the basement. And this investor rode it all the way down.
Agree. The internal rate of return for the funding of the retirement contribution, especially to cover the unfunded liability could go sky high and cause the employer to default on the plan. PBGC insurance does not pay full amounts.
I used to audit various types of pension plans.
Watch how the ruling elite becomes super rich at the same time by looting the treasury through countries like Ukraine.
10% for the big guy.
screwed the stockholders out of 100% of their stock, meaning all the stock employees had held was now worthless.
That was a problem with ESOPs.
The movie Animal House had a nice line concerning this “You F’d up, you trusted us”. Me, I just retired and moved everything (no debt, no house) to cash.
Quit/retire before Jan 1. Adjust your life accordingly.
I think the moral of the story is, DO NOT TRUST any company to look after your wellbeing, only trust yourself, and plan accordingly.
Establish your own 401K, if a company you work for offers one, contribute the max if they offer matching funds, when/if you leave the company roll over the funds into your personal 401K and keep going.
For 20 years I have been maxing my 401k contributions at 9%. My 401k is now worth a little over $270k.
This is preservation of capital time. T-Bills probably least risky, short term lets one roll them over as rates are rising now.
“depends on the bond and the interest rate.”
Name one and I will detail it.
In the ESOP programs like I witnessed, IMO it was a fraud, you had to take the word of the company about the value of the stock, since they were not public companies, they had no obligation to have open books and audits, it’s situation that is open for corruption and manipulation of employees who they fooled into being loyal until the owners screwed everyone over and walked away with the money.
The Dems have pulled out their knives and are stabbing them repeatedly into the American working class. They wanna talk about political violence? THIS is political violence. This is economic warfare against the American people, waged by our own government.
It's actually all in the allocation ratio. Most people starting retirement will want to still have some growth as the typical retirement length is nearing 20 years. If you go too conservative, you risk running out of money if you live too long.
A simplistic rule of thumb is to subtract your age from 100 and that is your allocation between stocks and safer assets like bonds. So the average 60 year old should have 40% in stocks. With a lot of diversification of course, such as S&P 500 based funds.
Now if you have millions saved up and can comfortably live off the interest on bonds and whatnot, all the power to you. That might be the safest way to go in that situation. But most of us need some growth even during retirement years.
Not everyone. Look, you can’t sit and be passive as changes in the market occur. Financial advisors don’t want to make a lot of changes and always tell you to ride out the lows because the highs always fix them. They don’t want the work in most cases and they certainly don’t want to recommend risky moves since they can be held liable for some losses. The thing is, there are cycles to this entire process. Watch what is going on and make moves. If bonds are shit then you move to commodities. If commodities start to tank then you move to stocks\mutuals. If the stocks\mutuals start diving, well there are different variants of these. Large Cap, Mid Cap, Small Cap, etc. Like I said, its a known cycle, including the inflation aspect.
E D U C A T E yourself on how this works and don’t leave it to others to make these decisions. Its not orbital mechanics or high energy physics where the calculations don’t make sense unless you have a ton of prior education.
What did people do back in the seventies when inflation was rampant and interest rates on mortgages were in the teens? This sort of thing has been going on for decades. Research it.
I’m thankful that I have at least 15 years before I hit that point. I do feel bad for retirement age people now. Dims/pinkos ruin everything.
“A simplistic rule of thumb is to subtract your age from 100 and that is your allocation between stocks and safer assets like bonds. So the average 60 year old should have 40% in stocks.”
I am 76 and all my portfolio is 99% stocks and 1% cash. These are all good companies with increasing dividends.
The grandkids will get the stocks.
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