Retirement account allocations and the election

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I met with my financial advisor a year ago, and re-allocated from 75% to 40% in equities. Seems like I stumbled on to good timing for that, through absolute luck. I'm net positive at this point, even accounting for my own and employer contributions.

I have a notion as to what I'll do with those investments between now and 11/3, when I'll be 61, hoping for a really good present. What are you all doing?
 

Asaltweapon

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Moved my wife's 401 into 75% Bonds and 25% Large Cap Growth. Gave some thought on pulling it all and paying the penalty.
I have a pension so nothing I can do there.

If Biden gets in then we will revisit removing it all. He'll just give it to the f***ing no speaks.
 

Broccoli Iglesias

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I dont think the market will crash on November 3.

If Biden wins, we know there will be trillions in money flowing to States and businesses. Stimulus money for everyone.

If Trump wins, either the gridlock continues or he stops caring so much and agrees to some package that contains a bunch of sh*t.

If you are looking at re-distributing look further out than 12 days from today.

What does your advisor think?
 

timbo

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My wife and I have a fair chunk of change from selling our house and wondering what to do with it (neither of us are financial gurus). Right now it's in our savings account but we need to find what our best recourse is. I have an uncle that up until 10 years ago was a financial advisor and lives about an hour away so we are going to have a chat with him after thanksgiving. We need to keep it liquid because we plan to use it to buy or build a place when we move to the mid west next fall. At this point, we are about 98% debt free.
 

snax

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Keep in mind if Biden wins has jacking up capital gains cobsiderably. He has said this.
Guaranteed if he does it sometime in 2021 it will be retro back to Jan 1st.
If u have any gains to realize that may be impacted... consult your tax and financial professional...u may want to look at realizing those by end of Dec
 
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I don't know what you all are doing wrong but I'm up over 50% this year. The market crash could be seen from a mile away... went in hard and fast when trouble started brewing.

Market gains far outpaced my salary this year.

Unless you are within 10 years of retiring- I'd suggest 100% index funds with a heavy tech tilt.

Within 10 years- own a primary residence outright, make sure your SS/pension/annuities cover your minor living expenses so you don't have to eat cat food, and throw the rest in a 70-30 index fund/bond split.
 
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appraiser

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my wife pulled huge amounts of monies out of equities recently, it is easier to give up a couple of months of returns in return for not having the risk of another huge dump that will take 10 years to recover from.

She figures she can jump back in if all is well after the election
 

Mountain

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I moved to about 80%+ money market for the time being. I may miss a little growth, but if the market takes a dive I'll jump back in. Even with simply riding out the crash I was up solid double digits this year, so I can lock that in until the situation is known.
 

mwalsh9152

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I rolled a very conservative 401K into an IRA back in April-May when the market was just starting to rebound. Maybe 1200ish points from the bottom. Im up 23% on that
 
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The government is looking at retirement money for the the next tax and grab.

Mark my words - they will be coming with a democrat POTUS, house and senate.

gotta come from somewhere. The millennials now make up the majority of the workforce and aren't earning shit. When it comes time for their retirement in 20 years they'll be f***ed.

We are still at historically low tax rates. Theres only one way for them to go at this point.
 

Mtn_Guy

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My financial advisor told me that my current allocations are on par with a 75 year old’s investment strategy at the moment — to which I replied, “good.”

(no offense to any guys at or around 75, ...I’m still saving for the kiddo’s college fund)

Fiscally conservative seems like the smart way to play the market at the moment, whether it is in bonds, government securities, or anything stable-value.

I’m willing to give up the potential 10-20% gain, to stave-off the potential for a 20-40% drop. (Any 5% swing is nothing to get excited over, IMO)
 

Junior314

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You don't make money in the market from timing the market. You make money from having TIME IN the market. I max out my 401K and ROTH IRA contributions every year, most of it is in large and mid-cap mutual funds with 5 star ratings.... and I let it ride...
This. The absolute worst time to pull out money is when the market is down. Up until you take it out its only an assumed loss and when you add taxes and penalties together your basically handing over 30-40% of your money to the government.
 
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For right now convert everything that has no early wd attached into $100 bills and secure them. After the dust settles you can decide what to do for the long run. Remember 2008. Jack.

made a ton of money in 2008 doing the opposite. Let it ride baby. Unless you are in penny stocks or strange allocations everything bounced back way higher.
 

alan226

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When I recently hit 62, which happened to be close to the top of the market, I put 25% of my money in fixed income (Bonds). The rest I'll leave in equities, mainly ETF's such as QQQ, DIA, SPY, VYM etc. When inflation comes roaring back, and it will eventually, making 1-2% ain't gonna cut it. If I have it figured out correctly, I can withdraw 5-6% of my money every year and never touch the principle...
 

jhblaze1

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I met with my financial advisor a year ago, and re-allocated from 75% to 40% in equities. Seems like I stumbled on to good timing for that, through absolute luck. I'm net positive at this point, even accounting for my own and employer contributions.

I have a notion as to what I'll do with those investments between now and 11/3, when I'll be 61, hoping for a really good present. What are you all doing?
lol. You weren't lucky dude you missed incredible gains. I'm 95% stock and my 1 year return is 27%. YTD with Rona I'm still +16%

Your financial advisor is a retard.

Well, maybe at 61 de-risking is a good move, but you would have made a shit ton more money had you stayed at 70%.
 

Wickedcoolname

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Do you mean just land or housing too? Because I've long since argued that the housing market does not beat the S&P. Worth some exposure, but not all.
I've made most of my living by buying and selling and sometimes renting houses. When the stock market bottoms out your $300k house is still worth $300k. Spend 5 or 10 grand on improvements and you could easily add $50k in value. Refinance the house and pull out the 50k and pocket it, tax free because it's not earned income. Try that with the stock market.
Also, what are able to do to your stock portfolio to improve its value like you did to the house? Nothing. You just have to wait and hope other people increase the value of your investment.
But I like unimproved land too, and for the same reason. You can buy an empty building lot, say for 100k and then buy a set of building plans for any type of house you happen to like. Say $1200 for your plans. Now you can advertise it as a lot with a set of plans. Maybe ask 125K. Or offer it as build-to-suit and make money on the construction end. The posibilities are almost endless. And it's something you actually own. You can walk on it and touch it. It's not just digits on a screen
 
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I've made most of my living by buying and selling and sometimes renting houses. When the stock market bottoms out your $300k house is still worth $300k. Spend 5 or 10 grand on improvements and you could easily add $50k in value. Refinance the house and pull out the 50k and pocket it, tax free because it's not earned income. Try that with the stock market.
Also, what are able to do to your stock portfolio to improve its value like you did to the house? Nothing. You just have to wait and hope other people increase the value of your investment.
But I like unimproved land too, and for the same reason. You can buy an empty building lot, say for 100k and then buy a set of building plans for any type of house you happen to like. Say $1200 for your plans. Now you can advertise it as a lot with a set of plans. Maybe ask 125K. Or offer it as build-to-suit and make money on the construction end. The posibilities are almost endless. And it's something you actually own. You can walk on it and touch it. It's not just digits on a screen

Good points. But I would point out that you can make significant money in the market if you know what you are doing too.
I made >80K this year day trading. Not including gains from my long term holds. Understanding the cycles, the earning reports, the technology. Takes time, but worth it.

I own a house- and its been a money sink ever since I bought it. New roof, new heating system, new appliances. Property tax is crazy high (>10K per year). I'm too busy with work and side gigs to worry about yard work so thats an out of pocket expense too. I'm also not especially handy- usually once or twice a year I have to hire someone to fix stuff (rotting window sills and stairs, paint, etc.). In the 7 years I've owned my home it's appreciated about 14% (100K give or take, according to zillow). I've spent more than that on property taxes, upkeep, updates and repairs. So approximately net zero.
 

Wickedcoolname

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Good points. But I would point out that you can make significant money in the market if you know what you are doing too.
I made >80K this year day trading. Not including gains from my long term holds. Understanding the cycles, the earning reports, the technology. Takes time, but worth it.

I own a house- and its been a money sink ever since I bought it. New roof, new heating system, new appliances. Property tax is crazy high (>10K per year). I'm too busy with work and side gigs to worry about yard work so thats an out of pocket expense too. I'm also not especially handy- usually once or twice a year I have to hire someone to fix stuff (rotting window sills and stairs, paint, etc.). In the 7 years I've owned my home it's appreciated about 14% (100K give or take, according to zillow). I've spent more than that on property taxes, upkeep, updates and repairs. So approximately net zero.
If a house isn't making you money it's the wrong house. Your property taxes alone would have me dumping that place tomorrow!
 

Varmint

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gotta come from somewhere. The millennials now make up the majority of the workforce and aren't earning shit. When it comes time for their retirement in 20 years they'll be f***ed.

We are still at historically low tax rates. Theres only one way for them to go at this point.
Dems are full in the Modern Monetary THeory camp. This theory says you can print all you want, and you don't need taxes except to influence behavior and redistribute wealth. But since the Dems are heavily back by the rich, there's a limit on wealth taxes. This is why Pocahontas and Bernie weren't allowed to win the Primary.
 

Varmint

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made a ton of money in 2008 doing the opposite. Let it ride baby. Unless you are in penny stocks or strange allocations everything bounced back way higher.
$5 trillion in stimulus will do that.

I think the stock market is a safe bet now - the Fed has promised to support stocks by any means necessary, including buying stocks.

I'd put my money in the S&P500, if it wasn't all in gold and silver miners already. [cheers]
 
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