Stockmarket prolonged dive?

[barry12345]

I have been thinking that it has only been going sideways at best in Canada compared to the last few years. Since just after last Christmas Basically.

I suspect the big guys are also reducing their exposure right now. Normally I would buy more on the next correction. At the same time the correction may be long lived is what I suspect.

The wife and myself in the scheme of things are very small investors. I have to wonder if we should even still be in the market at all?

[ah-kay]

Originally Posted by barry12345

The wife and myself in the scheme of things are very small investors. I have to wonder if we should even still be in the market at all?

I have no answer for you as the risk tolerance is different for everyone. As to exposure to the Market, it all depends on your age. If you are retired or near retirement age then the exposure should be small and more in bond. I know who can answer you here, the wealth procurator, the one and only.

[t walgamuth]

Nearly nothing in the stocks for me. I have some cash parked in TIAACREF which is a non profit organization for teachers and educators. Its earning from 3 to 4% with no risk so that seems good enough to me.

I like having my money in real estate and cars. I understand them and they cannot go to zero the way that stocks can.

[MTI]

Threads about investing are typically exercises in "everyone's got an opinion" since there's few, if any, golden rules of investment, except buy low, sell high, which may be qualified on one's current tax position.

Goals - both short and long term, risk tolerance, investment size and a dozen other factors can affect any plan. This is likely why most people either don't have a plan or merely use their company's 401(k) plan or mutual funds as their primary retirement engines.

[Skid Row Joe]

Originally Posted by barry12345

I have been thinking that it has only been going sideways at best in Canada compared to the last few years. Since just after last Christmas Basically.

I suspect the big guys are also reducing their exposure right now. Normally I would buy more on the next correction. At the same time the correction may be long lived is what I suspect.

The wife and myself in the scheme of things are very small investors. I have to wonder if we should even still be in the market at all?

You sound (and write here^^^^) like someone that needs to hire professional help with their financial situation(s). Best bet, hire a professional to answer your questions, concerns, and guide you.

[dynalow]

Consider the 4% rule.
http://www.nytimes.com/2015/05/09/your-money/some-new-math-for-the-4-percent-retirement-rule.html


Models suggest someone my age should be 60/40 Fixed/Equity. I'm still 60/40 Equity/Fixed. I do not believe Yellin will raise rates in 2015 & maybe not in 2016, election and all among variables.

Want overvalued stock? Go East young man, go East.

Credit Suisse Says Chinese Stocks are Overvalued by More Than 20 Percent - Bloomberg Business

[spdrun]

US has also been up and down this year, especially since March. 20-30% correction would be a primo buying opportunity. Here's to it.

[barry12345]

Originally Posted by Skid Row Joe

You sound (and write here^^^^) like someone that needs to hire professional help with their financial situation(s). Best bet, hire a professional to answer your questions, concerns, and guide you.

I no longer trust them. Generally I am not a paranoid type either. I am still responsable to see the wives investments are arranged by a professional and do so.

We do not have a his and hers money situation. I just feel more comforatable if she thinks a percentage is totally hers. It is anyways.

If I managed her investment myself it would do much better with even less risk. If I can do this and I can. My question to the fund providers a few weeks back is why are the professional groups like mutual funds not showing higher returns on average? My growing suspicion is they overall may be far less than honest now than ever.

All I am trying to achieve today is to keep fairly safely ahead or on par with real inflation in Canada. Retention of the buying power of ones existing money is not as easy now. A major problem is the general monetary policy in north America currently.

As you get to be the age we are as a couple. Money for whatever place it existed in our lives becomes yet always lower on the list. It gets displaced more and more by other things becoming more important than ever.

Young you wonder how or if you are willing pay for something. Older the consideration becomes do you really want it? The cost of it usually just does not matter.

For example I always had the ability to make perhaps many times what we currently have. That is in excess of our needs. It just was so low on the priority list that I never did it. No regrets either.

I always just wanted us to be the average couple with reasonable financial security as much as possible it is to have it without changing us.

Anything more than that might have been more trouble than it was worth. Or maybe the four offspring may not have done as well in life. Simply because I would have had even less time to spend with them when growing up.

There is an old saying that goes somewhat like. If you did not come from a very wealthy family. Excess wealth in the first generation is at least somewhat more problamatic to overall deal with. I tend to believe this in a general way.

For example I am not against an individual having great wealth at the same time. For some it represents a form of primary security in their minds. Some a game. Some things I cannot even visualize.

Alas there really is no such thing as with or without it you can be still be here today and gone tomorrow. As long as the surviving spouse has adequate means you probably have done your job. Anything beyond that you will probably never spend anyway. The residual value of the harder assets should be adaquate for the kids.

[Skid Row Joe]

Originally Posted by barry12345

I no longer trust them. Generally I am not a paranoid type either. I am still responsable to see the wives investments are arranged by a professional and do so.

We do not have a his and hers money situation. I just feel more comforatable if she thinks a percentage is totally hers. It is anyways.

If I managed her investment myself it would do much better with even less risk. If I can do this and I can. My question to the fund providers a few weeks back is why are the professional groups like mutual funds not showing higher returns on average? My growing suspicion is they overall may be far less than honest now than ever.

All I am trying to achieve today is to keep fairly safely ahead or on par with real inflation in Canada. Retention of the buying power of ones existing money is not as easy now. A major problem is the general monetary policy in north America currently.

As you get to be the age we are as a couple. Money for whatever place it existed in our lives becomes yet always lower on the list. It gets displaced more and more by other things becoming more important than ever.

Young you wonder how or if you are willing pay for something. Older the consideration becomes do you really want it? The cost of it usually just does not matter.

For example I always had the ability to make perhaps many times what we currently have. That is in excess of our needs. It just was so low on the priority list that I never did it. No regrets either.

I always just wanted us to be the average couple with reasonable financial security as much as possible it is to have it without changing us.

Anything more than that might have been more trouble than it was worth. Or maybe the four offspring may not have done as well in life. Simply because I would have had even less time to spend with them when growing up.

There is an old saying that goes somewhat like. If you did not come from a very wealthy family. Excess wealth in the first generation is at least somewhat more problamatic to overall deal with. I tend to believe this in a general way.

For example I am not against an individual having great wealth at the same time. For some it represents a form of primary security in their minds. Some a game. Some things I cannot even visualize.

Alas there really is no such thing as with or without it you can be still be here today and gone tomorrow. As long as the surviving spouse has adequate means you probably have done your job. Anything beyond that you will probably never spend anyway. The residual value of the harder assets should be adaquate for the kids.

I don't trust 'em either. I never have, FWIW.

When you know what your investments have been invested in, and for how long, it's then possible to easily assess performance.

Once those questions are answered, simply do the assessment of their performance doing a side by side comparison of what the broad stock market averages produced for the same period of time.

Then there's the question of how much sales or service charges your advisor(s) are costing you every year, based on the amount, and or performance of your specific portfolio(s).

Then lastly, align that performance or non-performance against the same period of time's annual inflation in your Country.

Our Country's broad stock market has tripled since 2009. That's 300% Up in less than (6) years. Not sure what your stock market(s) i.e. performance(s) are? You'll have to find that out.

Inflation is running less than 3% in our Country, for several years now.
There is no inflation to speak of - even today (in our Country anyway.)


Since you brought-up family too, I'll comment on that aspect.
You may have a blended family situation? IIRC, you've been married before this wife. If that's the case, and there are children or step-children involved, you've got the opportunity now to set things up via your Will to remove any situations from developing that you can circumvent now while you can plan for it - financially speaking of course.

[Skid Row Joe]

Originally Posted by dynalow

Consider the 4% rule.
http://www.nytimes.com/2015/05/09/your-money/some-new-math-for-the-4-percent-retirement-rule.html


Models suggest someone my age should be 60/40 Fixed/Equity. I'm still 60/40 Equity/Fixed. I do not believe Yellin will raise rates in 2015 & maybe not in 2016, election and all among variables.

Want overvalued stock? Go East young man, go East.

Credit Suisse Says Chinese Stocks are Overvalued by More Than 20 Percent - Bloomberg Business

You mentioned a while back that you had a hired financial advisor. How has he done against the market for you since hiring him?

[panZZer]

Originally Posted by Skid Row Joe

I don't trust 'em either. I never have, FWIW.

When you know what your investments have been invested in, and for how long, it's then possible to easily assess performance.

Once those questions are answered, simply do the assessment of their performance doing a side by side comparison of what the broad stock market averages produced for the same period of time.

Then there's the question of how much sales or service charges your advisor(s) are costing you every year, based on the amount, and or performance of your specific portfolio(s).

Then lastly, align that performance or non-performance against the same period of time's annual inflation in your Country.

Our Country's broad stock market has tripled since 2009. That's 300% Up in less than (6) years. Not sure what your stock market(s) i.e. performance(s) are? You'll have to find that out.

Inflation is running less than 3% in our Country, for several years now.
There is no inflation to speak of - even today (in our Country anyway.)


Since you brought-up family too, I'll comment on that aspect.
You may have a blended family situation? IIRC, you've been married before this wife. If that's the case, and there are children or step-children involved, you've got the opportunity now to set things up via your Will to remove any situations from developing that you can circumvent now while you can plan for it - financially speaking of course.

mAAAN, you got no problem crammin yer nose up in someones...........

[sloride]

Originally Posted by panZZer

mAAAN, you got no problem crammin yer nose up in someones...........

It read to me like an answer to the question in the original post. If some one asks, what to do during a water pump change, and got an answer back, at the same time check your belts and replace coolant if it hasn't been done in the last two years. I would think that would be appropriate. Or would that be crammin a nose up there and spending their money foolishly.

[Skid Row Joe]

Originally Posted by sloride

It read to me like an answer to the question in the original post. If some one asks, what to do during a water pump change, and got an answer back, at the same time check your belts and replace coolant if it hasn't been done in the last two years. I would think that would be appropriate. Or would that be crammin a nose up there and spending their money foolishly.

Thanks for this, sloride. Some aren't capable of rational discussion that involves either subject matter that they know nothing about, or, are envious of others having that rational discussion about that subject matter.

[dynalow]

Originally Posted by Skid Row Joe

You mentioned a while back that you had a hired financial advisor. How has he done against the market for you since hiring him?

Skid,
It's hard to accurately calculate from 2007, since the account remained contributory until July 1, 2011, when the firm dissolved. But since then, through Mar. 31, 2015, total growth is 37.5%. Dunno total market return for same period, but I have no complaints.
Current mix is 56/44, fixed/equity. The good news is the fees are .55% per annum. The bad news is the plan will probably finally shut down this year if the other two remaining participants repay their loans.

[sloride]

Originally Posted by Skid Row Joe

Thanks for this, sloride. Some aren't capable of rational discussion that involves either subject matter that they know nothing about, or, are envious of others having that rational discussion about that subject matter.

I am sure had it been a poster of their liking the response would have been something like this. Great detailed answer, to bad we have to many opposite thinkers here. Nothing at all to do with the answer you had posted.