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!
the market will recover if Republicans take over in November.
I'm 15 years away from retirement, and I'm loving the stocks my 401K buys every month at low prices.
If you plan to retire in the next 5 years, then yeah, there's plenty of reason to be worried.
Inflation directly affects cash.
Not like it does 401ks…but you know that.
Depends on where your cash is.
But, you know that, too.
Not!
Lol…dug way deep.
From the email:
“Every year, we are required to update pension interest rates set by the IRS, which has an impact on your pension payment. This year’s circumstances are different than the past several years. We’re experiencing rising interest rates, economic uncertainty, and outstanding questions about inflation, and other indications that more change is ahead, all of which affect our business and could impact our workforce. In particular, rising interest rates could impact your pension payment calculations.”
if you are close to retirement you’re not supposed to be invested in volatile instruments. you are supposed to be invested in things like bonds that don’t change all that much. The idea is that you buy bonds that have a guaranteed return in a timeframe. Then your money(value) very slowing increases over that timeframe without the risk of loss. Higher risk investment vehicles are used early in your career so that their volatility can work in your favor and any\or losses you incur can be made up before you need that money to survive. If you or your financial advisor have not steered your retirement funds in this direction then the fault lies with you or the advisor, not the retards we have running the government.
“Depends on where your cash is.”
In the fridge or under the mattress. Same.
If your retirement is based on investments, as so many are, the dollar value of your retirement is going down, while the amount each dollar will buy is also going down. The two curves are added to each other.
If I lost 20% of my retirement investments, and prices go up 10%, my real retirement income has gone down by 73%. And that is what I am going to lose this year.
String three or four of those years together, and my retirement plan that had me eating steak will suddenly have me eating cat food.
Some old defined benefit plans allow a ‘lump sum’ option. If interest rates go down, the lump sum benefit goes up, and vice versa.
I was sub-contracted to Northrop Grumman in the early 2000’s. Interest rates dived, and NG employees (not planning to retire), did so, because the lump sum benefit went ‘to the moon’. It was too good for them to pass up.
It will be due to both. Your IRA will shrink, and those remaining dollars will buy less.
I believe it.
A lot of assumptions were based on markets always trending up.
Retirement is based on it. So is healthcare and education.
Our system is not capable of a long term down turn.
Yet Fetterman is leading Oz in PA.
I plan to reinvest at the market lows and ride the recovery back to the top.
-PJ
If it’s any consolation, I worked for Burrough Computer Corporation in the early 80s, I watch 25–30-year career employees get screwed out of thousands of dollars, they had an employee stock purchase plan that allowed employees to purchase stock at a 15% discount, but you had to hold the stock for 1 year, before you could sell it, long time employees ended up with 1000s of shares, that at one time were worth $70-80 share and ended up being penny stocks, who ended up getting canned when the inevitable layoffs happened, it was gut wrenching watching old men crying like babies when leaving the company they had trusted and worked their entire life for holding worthless stock.
In one of my last jobs, I worked for a private company that touted itself as an employee-owned company that issued stock to employees based on their longevity, after 6 years you would be fully vested in the plan, 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.
I don’t know how this stuff works. But there’s an official mail from the company warning us about this. “Up to 30% loss”
—
Company pensions are themselves usually tied to stock market investments. So they may simply be talking about the market climate.
Depending on the size of your company, if you have questions about what this all means to you financially, your best bet is probably to talk to someone one-on-one in the HR department who can explain the retirement options for your specific case.
“if you are close to retirement you’re not supposed to be invested in volatile instruments.”
Invest in bonds and due to inflation you will be broke in 20 years.
the market will recover STABILIZE if Republicans take over in November.
QE has been propping up the market for a decade - it’s gonna take 5-10 years to recover
depends on the bond and the interest rate. Government bonds are not the only ones out there.
Enjoy!
https://www.youtube.com/watch?v=B57H8AxkszY
Wife and I are already down 40%.
We are seeing across the board asset value destruction due to the profoundly destructive polices of the Biden Admin
There is no safe place to hide and valuations still have a way to go before leveling out
We are seeing the engineered destruction of the American economy.
It’s almost as if they had a timeline starting in the Obama years and Trump put their schedule back and Biden is working overtime to catch up on the take down of America
I will be happy if I walk away with a mere 50% hit when the dust finally settles. There are really no safe havens because it seems the intended goal is to destroy the American middle class and they are covering all their bases
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