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| Economy |
| U.S. retirees try to keep cool as stocks tumble |
| 2018-12-29 |
| BOSTON (Reuters) - Nancy Farrington, a retiree who turns 75 next month, admits to being in a constant state of anxiety over the biggest December stock market rout since Herbert Hoover was president. "I have not looked at my numbers. I’m afraid to do it," said Farrington, who recently moved to Charleston, South Carolina, from Boston. "We’ve been conditioned to stand pat and not panic. I sure hope my advisers are doing the same." Retirees are worrying about their nest eggs as this month’s sell-off rounds out the worst year for stocks in a decade, and some fear they are headed for a day of reckoning like the 2008 market meltdown or dot-com crash of the early 2000s. Retirees have less time to recover from bad investment moves than younger workers. If they or their advisers panic and sell during a brief downturn, they may lock in a more meager retirement. But their portfolio could be even more at risk if they hold on too long in a prolonged decline. "I have no way of riding it out if that happens," said Farrington. "I can feel the anxiety in my stomach all the time." Related: Hot Air - A Stunner, National Debt Interest Will Soon Exceed National Defense Spending |
| Posted by:Besoeker |
| #4 Stocks are up VASTLY over the last 2 years though, because the economy is looking to grow, hence interest rates returning to less bank subsidy levels. |
| Posted by: Bright Pebbles 2018-12-29 12:20 |
| #3 Retirees investing in stocks are like sheep lining up to be sheared. And then to be slaughtered. |
| Posted by: Anguper Hupomosing9418 2018-12-29 09:21 |
| #2 ....turns 75 next month... Any advisor worth their salt would have her in very low risk/low yield positions. Sounds like she either chose poorly, didn't listen, or never read a book on the basics of money management. 2 for 1 on Alpo down at Kroegers. Get you some Nancy. |
| Posted by: Bangkok Billy 2018-12-29 03:28 |
| #1 Fifty years ago no one would have thought of putting all of one's saving into the stock market. The death of bank savings accounts (virtual zero interest) has help create this dilemma. Banks no longer need your savings dollars, Uncle Sam provides them with all the liquidity they need, at virtually no cost. The 'Forgotten Man' cannot compete with the big gov't banking customer. As long as the interest due does not exceed the rate of inflation, the gov't can sell bonds forever. Computerized stock trading has also left a great many small-time investors sitting beside the road, wondering what happened. Counting on the stock market alone for a safe retirement program comes with risk. |
| Posted by: Besoeker 2018-12-29 02:58 |