Posted on 09/28/2022 10:53:42 AM PDT by quikstrike98
Biden has cost the markets to lose 9 trillion dollars 8 to 80 year olds everyone takes the hit retirement is just a dream of the past.
No pity from me. We’re all men.
“No pity from me. We’re all men.”
And some of us are @ssholes, too!
I wasn’t looking for pity, @sshole.
Many people were suggesting a fair-market P/E ratio of about 14x, which would put the S&P 500 at around the 3200-3400 range. It's at 3719 now, and was 3614 yesterday.
I think we're still going to see some more bear market rallies before the market hits it's low. I might wait until 3,200, or perhaps get in at around 3,400.
I think after the election is a good time to consider getting back in.
-PJ
In even more good news, there’s a run on pensions in the UK.
“In particular, rising interest rates could impact your pension payment calculations.”
So the in particular part is not about inflation directly, but particularly about rising interest rates, which are, yes, in part being impacted by the Federal Reserve’s raising their interest rates (due to inflation), but also due to higher interest rates on bonds, like on Treasury notes, which moves some investment money out of stocks (can help move and into the newly higher yielding bonds (can help move stocks lower).
But it seems to me that not all the possible effects from higher interest rates MUST effect their pension payment calculations negatively. If more of the pension reserves are moved now from equities to the now higher yielding bonds, more of the capital will be secured, for the duration of the bonda and it will earn the interest/dividends of the bonds. If moves like that are made while the equities are lower and maybe moving even lower, more capital will be preserved during that period and the fund managers can “buy low” when equities are moving back up.
I don’t know your retirement fund’s retirement benefit calculation method, and I am not sure how and why higher interest rates will negatively impact those calculations. But I do not think any negative impacts are unavoidable, as if there is nothing they can now (or could have done sooner) to “soften the blow”.
My own pension plan literrally blew it on inflation and higher interest rates.
They had for many years moved the largest portion of the pension plan money into index funds run by outside investment outfits. Index funds don’t make specific stock picks, they just try to mimic, proporaitonately, stock index, like the Dow Industrtials or the S&P 500. And index fund just moves in whichever direction the actual index moves - up or down.
Begining more than two years ago I and others warned them that the Fed’s near zero interest rates were creating asset bubbles and those asset bubbles were inlfationary to the economy - inflated assets being sold pumps inflation into the economy. The stock market was one of those bubbles even before Trump. Biden’s spednding just added gasoline on an already inflationary fire. Now the day of reckoning is coming.
We suggested they move siseable portions of the pension money out of the index funds, keeping some for risk taking, and increasing the buying of more stable assets like long term bonds and high yield short term bonds - preserve more of the capital asset value of the funds, before and as equities (stocks) decline.
They did not heed advice that I and more important voices gave them.
My montly pension benefit goes down $500 a month beginning 10/1/22.
As a pension holder I told them three years I would rather they not give us (me) pension benefit increases (which while ignoring us they did in 2020 and 2021), and instead hold onto more assests outside of the index funds, so we may hang onto more of the existing monthly payment value in 2022 and beyond (until we get out of the swoon in the stock markets).
Sorry to read this. It is awful what they’ve done.
-PJ
“cash could’ve been worthless or still can be. there is no way to know.”
My Grandma burned stacks of Reichsmarks for home heating in 1920’s Germany...
Wow
I’ve read about this
Democrats destroy!
For more chaos, crime, carnage corruption, disruption, inflation, riots, woke insanity, “Green New Deal” insanity, etc., etc., vote Democrat!
Why ANY sentient American could vote Democrat has greatly puzzled me for my entire adult (I am 81) life!
Only answer that makes sense to me is that they are being paid, in some manner I don’t understand, to vote Democrat.
If the anti-American, insane, outrageous antics of Sloe Joe, The Hoe, and their criminal conspiracy administration do not result in MASSIVE, LANDSLIDE Democrat rejection in November 2022 and 2024, America is truly lost!
Make America Great Again by voting Republican in 2022 and 2024!
“Inflation Could Cause Me To Lose Up to 30% of my Retirement”
_____________________________________________________________
So the 401k is now a 280k. Subtract “8.6% inflation” and it is down to a 246k. At age 66 going on 67, I understand your situation except my 401k got pulled out with penalties/taxes and put into tangible assets.
This article is informative as to where we are and why.
https://market-ticker.org/cgi-ticker/akcs-www?post=247061
The cms vax mandate costed me 50% of my entire income, working class.
made mistake of visiting the expensive grocery
asked how much a pound of beef bologna would be,
lady said “$16.99”
which was super-expensive, but since I was in there I said, OK for one pound.
she sliced and wrapped it, stuck the computer-generated price tag on it, and ran away super fast —
that caused me to wonder. I took a glance at the price tag.
$38.66
($36.99 a pound and she had gone a tad over at the slicing machine)
there was another employee within hailing range so I called him over. he did a long embarrassing dance about how I would have to pay the computer-tag price instead of the quoted price (my companion witness was howling at him.. to no avail)
result, he got handed back his sliced diamonds
and we left the store
however,
even the quoted $16.99 is up from $9.99 at the regular grocery just a few weeks ago
I’m returning to the regular grocery but food prices there have shot up 30 percent or so in the last couple months.
on almost all kinds of things.
a 16 oz bottle of pickles was $7.99
and they had eggs from around $4 ... all sold out... to about $12 (!)
potato salad at $11.99 a pound
99 cent wheat bread for the birds up to $1.79 or $2.29 (depending on which store)
tiny little TV dinners, the cheapo brand that has always been 99 cents, now $2.25
Biden will lose except for the D party ELection Theft Machine
he would not get 30 percent of the vote without it
gasolind $6.69
-PJ
and you thought you were special
It’s getting that bad, yep.
Investing tip bookmark.
“and you thought you were special”
Really? I didn’t feel special when I was cleaning shitters on Parris Island.
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