How many here are concerned about their retirement accounts?

[Alobar]

This poll is for anyone, either retired, soon to be retired, or those who someday will wish to. It is not about the CV19 virus, in a medical way or justification for the shutdown, but just the economic ramifications of shutting down much of the workforce while we wait this out indefinitely. We ARE in uncharted waters here! If you wish, do explain why you voted as you did.

Some potential causes for concern that some may not have thought much about.
Inflation. Will there be a lot of that in the future, eroding what was for many years a great run in the markets?

Will assets such as your home keep and survive their value?

Will your pension plan be in danger of either becoming insolvent, or be forced to reduce its planned payout due to losses from being heavily invested in the market?

Will your 401K be able to come back. Will the economy come roaring back after this?

This topic may become political, and if so the mods will shut it down in a heartbeat so just stay away from those sorts of comments. Sometimes something posted may not be intended as political, but can be read that way so think before you post! This is just for getting a feel about the economic concerns for those of us (like me and probably everyone else here) who depend on a healthy economy.

And no conspiracy theories, no matter how plausible they are as to a hidden agenda to all this. Just your concern about your future or current retirement plans. Tall order I know, but lets try and give it a shot.

 

[Alobar]

I voted very concerned for several reasons. First, much of our (wife and I) monthly income comes from 3 separate pension plans, and social security. Not concerned about SS for the immediate future, but those pension plans really do depend on investments to survive and continue to pay out. I have frankly avoided even looking at my wife's 401K, as it was kept in relatively "safe" investments. She feels it will come back if we just leave it. I hope she is right as it could be the difference between living well enough and barely surviving. Fortunately our house is paid for so there is that going for us, but taxes in the future could rise as our town gets forced to tax us more as state funds start to dry up. Yes, states can feel the pinch as well!

 

[mkane]

Should I be? My union pension's federally funded . I suppose anything could happen. SS worries me more.

 

[4-2-7]

Inflation. Will there be a lot of that in the future,

That's always a problem, it went up exponentially after the housing crises and the Federal Reserve printed dollars, known as Quantitative Easing. In other words the more money printed dilutes the previously earned money one has, that's inflation. They are today printing trillions of dollars to cover what's going on.

Will assets such as your home keep and survive their value?

That's market demand and ability to buy, if the ability drops for more people there will be less demand, that will reduce the price.

Will your 401K be able to come back.

As far as I can see most 401ks are only 9% off of what they where before the shut down. Sure they dropped something like 25% at first but the markets are back and have been going up. I think the DOW was over the 24,000 point area Friday. Four years ago the DOW was in the area of 16,000 points and it always was that or below for many many years. Everything above that has been good, the Dow broke record highs like over 100 times over the last 4 years. We where reaching record highs of 30,000 points just before the shut down, even at a 25-30% drop your doing better than 4 years ago, but today your only seeing a 9% drop. That's a hell of a lot better than everyone was doing 4 years ago.

Will the economy come roaring back after this?

I think so, I have lots of work waiting, people want things done and chomping at the bit. The biggest hits will be things relating to travel, and big venues and all related to those. I hear right now the motor home sales are going up and spiking. People will vacation closer to home, eat and sleep with more security they can control.

This topic may become political, and if so the mods will shut it down in a heartbeat so just stay away from those sorts of comments. Sometimes something posted may not be intended as political, but can be read that way so think before you post! This is just for getting a feel about the economic concerns for those of us (like me and probably everyone else here) who depend on a healthy economy.

Everyone thinks everything is political if it's anything to do with living and current events.
Economics is controlled politically, and that's the problem, it shouldn't be.

 

[Alobar]

Should I be? My union pension's federally funded . I suppose anything could happen. SS worries me more.

I would say if your pension is from the federal system that should be safe. My wife is retired from NOAA and hers seems to be safe.

My 3 pensions are all through my union, but are not tied through any government agency. They have for the most part been rated quite well, but are tied to the market. They are insured by a gov agency but only a portion, and only for 5 years as I understand it. I think I did the math once on insurance payout would cut my income by about 2/3rds and then for only 5 years, after which I assume we are supposed to be dead already!

 

[onwardjames]

Sadly, I have no retirement plan. None, whatsoever. I bailed on the stock market, just as it made its bullish climb, of course.

Good luck to those riding out this particular rocking of the boat (economy). And like Forrest Gump, "That's all I have to say about thayy-yut."

 

[kirk57]

Very concerned.

The only plan that I have complete confidence will be fully funded for as long as I need is if I drop dead the day after I retire.

 

[4-2-7]

My retirement plan is to die before that happens, as I don't have one.

If you have one, and own a home, think of yourself as in a good position as maybe your around only 20% of the retirement age US population to have it.

 

[rebellovw]

I'm concerned but I'm also a Boglehead - so sticking to my plan and not panicking or changing anything. I know the economy will come back and when it does - it is going to be crazy strong.

 

[dosmalo]

[....] I bailed on the stock market, just as it made its bullish climb, of course.

Several of the wealthiest people I've known never and wouldn't ever put a dime into the Stock Market and on the flip side I've know of several that woke up one day and lost their shirt there.

 

[tubed]

 

[blhagstrom]

“This” “down turn” is nothing but a hype fueled panic” Everything I read is written by children trying to use historical down turns as reference or comparison. Most/all are looking at current numbers and using hyperbolic terminology.

There will be changes but those will fuel demand and adjustments that will create opportunity and wealth.

As soon as I saw the fed reaction, I started moving money from savings to the markets.
I bought the dip and am already well into the black.

The stupidity of the panic selloff was only out done by the panic buying of toilet paper.

The Rothschild fortune was started in a panic.
“The time to buy, is when there is blood in the streets, even if it’s your own”.

I’ve been through “hard times”. I built a fort against it. This is nothing.

 

[Alobar]

My retirement plan is to die before that happens, as I don't have one.

If you have one, and own a home, think of yourself as in a good position as maybe your around only 20% of the retirement age US population to have it.

Those of you who have carved a niche out and being self employed likely will be fine without too much of a plan. Depending of course on how much demand there is for whatever you sell or service you provide. If its re-roofing houses, well there could be a expiration date involved.

Those who do lose much of their retirements might discover that "60 is the new 50" doesn't extend over to employers looking for youth and no grey hair.. That is being discovered by quite a few who haven't retired as well!

Me, I retired early, but when I was working, I was doing a LOT of 6-7 day weeks and 10 hours+ a day as a union electrician. I tended to seek out those jobs because of the overtime, but at some point I became tired of it, mostly working away from home for weeks at a time. So when I retired, I moved 600 miles away and started clearing 100 foot spruce trees! I built my own damn house, with 99% of the labor provided by myself and my wife. Only excavation work was hired out. So we are finishing the house, and now in a wait and see mode as to how it all shakes out. Not worried about resale of the house, my wife and I both decided this is it, no nursing home for us etc. I try not to think about that too much!

 

[usedto]

My "retirement" is all tied to real estate except for some stocks inherited from my parents (including a nice chunk of Apple).

Two rentals with virus-proof tenants, three first deed of trust notes (all rock solid), a small warehouse in a commercial condo for my ebay sales, our new home, and 60 acres of almonds.

If they all go bad, I always have my 900 or so bottles of wine.

 

[Djcoolray]

I’m a military disabled retiree and have nothing to worry about financially, that is until inflation and or a lack of supplied necessities drive prices up drastically. In a crisis, there are too many variables that you can not control. The only thing that you can control is what you can do for yourself as in repairing your own car via instructional videos online, growing a vegetable garden and raising your own chickens. In a crisis, people have to become inventive in taking care of themselves instead of paying a retail entity. Due to the crisis, the internet can help a person to learn to become healthier and find smarter ways to live a better life instead of just going back to the same ‘ol same. So it all depends on how you want to focus on the situation. I’ve gone to buying more bulk organic food items online to compensate for the rise in prices. I can remember a time when people did not buy anything in a box or bag and didn’t throw anything away. So I guess we all are going to have to learn to do things smarter and not harder. Then I think that the lure of what a person can get by spending money will not have the same importance anymore.

 

[trinhsman]

We’ve been lucky. The bulk of my retirement money is in a private stock that has actually gone up over 10% since the Covid-19 started. When I add my 401K to that I am still where I was before all this started. Also, we are going to be able to have our house paid off this month. We have no car payments or other debt, so we will be good. A lot of hard work and missing birthdays and anniversaries have made it so we can now be at this point. All done with just a high school diploma. Anyone can do it if they truly want it.

 

[jhtstone]

To have a retirement account is to always have proper concern for it. To have a retirement account is also to not have improper concern for it. They work hand-in-hand.

 

[Alobar]

41% have no concern at all! I am a little surprised at this finding.. To me, this is entirely unprecedented with the shutdown, so to be that sure that "what could go wrong" isn't just a way to put it out of their mind. Or maybe not!

To me, the economic situation sort of reminds me, if taken to the airliner analogy of something like this true story. A KLM 747 airliner flying at 30k+ feet over the Alaska Peninsula or "AK Pen" after its refueling stop in Anchorage flew through a plume of volcanic ash from the recent eruption of a mountain. All 4 engines failed, and on the plunge of 14'000 feet, the crew tried multiple times to restart the engines, before finally succeeding. Will this be how it goes with the economy? I know the Dow is up, defying all logic, but the real test, of getting small businesses started back up, as well as returning the 14% unemployment rate back to where it should be has yet to be done.. Also things like oil prices, hospitals on the verge of insolvency, even doctors.. There are lots of other concerns where taken individually are not very noteworthy, but all together could cause us to be going south in ways we can't really see just yet. Will the governments of the world get 'all four engines' started in time?

 

[dr*audio]

“This” “down turn” is nothing but a hype fueled panic” Everything I read is written by children trying to use historical down turns as reference or comparison. Most/all are looking at current numbers and using hyperbolic terminology.

There will be changes but those will fuel demand and adjustments that will create opportunity and wealth.

As soon as I saw the fed reaction, I started moving money from savings to the markets.
I bought the dip and am already well into the black.

The stupidity of the panic selloff was only out done by the panic buying of toilet paper.

The Rothschild fortune was started in a panic.
“The time to buy, is when there is blood in the streets, even if it’s your own”.

I’ve been through “hard times”. I built a fort against it. This is nothing.

Exactly! If your investments are diverse you will be fine. If you invest mostly in mutual funds, those funds have managers who buy stock when the prices go down and sell when the prices recover. You will make money. Even if your money is mostly directly invested in stocks, all you have to do is wait for the prices to come back up. You don't lose money unless you sell the stock when the price is down, or if the company goes bust. (There's the risk.)

 

[tubed]

The bull market in all assets, including retirement funds, began forty years ago with a systematic lowering of interest rates(cheaper money).
The process has continued with the raising of rates, each time smaller interest rate moves caused market disruption(recession).
We are now at zero with nowhere to go but negative interest rates.
That, and years of trillion dollar infusions, that will have to continue indefinitely until there is a real economic reset.