So a family member is much better off than I am....

[catnhatnh]

He is retired and he has been dreading and avoiding opening statements regarding the status of his retirement investments. Now his pension is separate and seems (semi) secure but his investments are truly his "walking around" money and represent 40 years of of prudence and sacrifice...

We don't talk money.I have no idea of his net worth. His wife holds separate a modest inheritance besides.But being as careful as possible and prudent in his risks he lost 51K last year...

He told me he was happy it wasn't worse. His fear was he'd lost nearly twice that. But that amount is nearly what he made the best year of his life.

Picture that-an amount equal to income of your best year, saved over decades and gone by the financial malfeasance of those who made high multiples of your loss per year every single year to behave as a fiduciary and as a "prudent man" and who deducted fees to do so.

It's a good thing I'm poorer, because if that were my "walking around" money someone would have to answer for it. And they would answer for it to the nickle or pound of flesh.

[scarletwoman]

1. Sorry, I've never understood the mindset that could conceive of putting money in the stock market

as "saving". It's not "saving", it's gambling.

At least it sounds like he'll be okay.

sw

[catnhatnh]

2. He was in mutual funds and "safe" ones at that....

though it now appears that "under the mattress in the bedroom" was the solution, it appears no financial advisors had a "Clue"...

[pnwmom]

3. It is investing. And when you buy solid stocks and can hold them for decades,

it is usually a very good investment.

The problem is in having too much in stocks when you are close to or in retirement.

[catnhatnh]

5. He never owned a share of stock or cared to.

Mutuals are merely expected to do better than savings accounts and to be low risk. He followed the advise of paid professionals to achieve a modest gain over CDs and instead took a bath. Thank GOD he never listened to a stock broker.

[MercutioATC]

10. If his mutual funds lost $51k, they were most likely equity funds (stocks)

So he DOES own stocks, just not individual stocks.

[lostnfound]

16. Darn, if only every bit of financial advice I've heard or seen for 25 years would have agreed.

Hindsight is 20-20, but standard advice given to the middle class throughout my entire working life has been to have six or twelve months worth of income in savings and CDs, and put the rest including 401Ks in a balanced mix in the stock market.
You can declare us all stupid for following that advice -- I prefer the term naiive - but when the financial planning advice handed out by your company, major magazines, popular books like "Lasser's Guide to Retirement Planning" etc etc, mentors higher up the ladder at work, etc. are all saying the same thing..decadea after decade..it starts to feel stupid to ignore that advice.

Are you saying that you would not have put it in 401K accounts either?

[Shakespeare]

4. My 401k/profit sharing account at work, amazingly, didn't lose any value.

It had a tiny, tiny gain, in fact.

I have NO IDEA how that happened, but I'm delighted and relieved (I need to go look closer at the makeup of the fun, but it's through John Hancock retirement services).

I expected to lose approximately half of its value (which wasn't much, but I still didn't want to lose anything). I consider myself to be very, very fortunate.

[remoulade]

6. Investments and 'walking around money' are mutually exclusive assets.

Your family member is bullshitting you.

[catnhatnh]

7. No, I've been watching your posts and I know TEMPORARY

bullshit when I see it.Tell me the part he is "bullshitting" about, his loss or how it effects his discretionary income? Stick your bullshit up your ass. Don't like that-go ahead and alert from under your bridge.

[remoulade]

8. I just thought investments were for future use and walking around money was for right now.

Apparently those definitions aren't currently valid. Mea culpa. I would be forever in your debt if you can elucidate the proper contemporaneous meanings of those terms. Thanks! :D

[catnhatnh]

9. Sure....

Your walking around money is your discretionary funds...In short concise words money you can afford to blow how you choose knowing you will not want for food, shelter, or say utilities....now tell me how a 51K loss in those funds invested in mutuals is "bullshit"-is he lying or am I making it up?

[remoulade]

11. Hey, you just agreed with me. Nobody has ever 'lost' money on an 'investment'`

until he/she liquidates it. Believe me I know about that...I sold all my stocks 9 months ago. Before they really tanked. Like I said, your relative is bullshitting you. :D

[catnhatnh]

14. You are an asshole

Twice you've called a close relative a bullshitter. Personally I hope you die soon and in pain. But thanks for responding.

[Tsiyu]

15. rofl

:rofl:





Yeah, I thought this one was funny til I read a few more posts, Now I second your sendoff...

[MercutioATC]

12. Almost all investing contains an element of risk.

Government treasuries are possibly the only exception, and they're not currently keeping up with inflation.

If your family member lost money, he set himself up for the loss by his choice of investments. He could have chosen a lower return and not exposed himself to the risk.

There's nobody that has to "answer for it" other than him.

[serrano2008]

13. So he hasn't really lost anything right, unless he sold his stocks for a loss.

Most likely they'll come back bigger than ever in another couple of years.

I wouldn't worry too much about your family member.