Did you hear the news this morning? The Republicans have gone rogue.....let's give everyone $1000. Isn't that Socialism?
Have to say it made me truly laugh out loud:~)
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Did you hear the news this morning? The Republicans have gone rogue.....let's give everyone $1000. Isn't that Socialism?
Have to say it made me truly laugh out loud:~)
Andrew Yang. A man before his time. :)Quote:
Originally Posted by Gardnr
Wasn't his plan 1000 a month though?Quote:
Originally Posted by catherine
Oh, yes. That's true. I do think that this 850B stimulus is OK, as long as it bridges the gap for people who are losing a tremendous amount of income on a month-by-month basis, whether they are employees or small business owners. My son is the former who works for the latter. Double whammy if his new boss's business goes under.Quote:
Originally Posted by Tybee
Maybe George W. Bush was a man before his time!
Hey I didn't like him and never voted for him, but I do remember a some $700+ stimulus check, maybe more than one, just sent to me all at once (whatever the amount I'm sure it's at least $1000 with inflation adjustment). It might be the only thing I ever liked about W., he got the giving people money thing down.
Much better than ridiculous payroll tax cuts that noone even notices as they are dribbled out a penny at a time. Did anyone notice them under Obama, I can't say I did (but you can be sure, they will be used to cut social security, because hey betting your entire retirement on the stock market is sure looking like a great idea right now).
Many seniors living on interest from savings have already been hit horribly by this.Quote:
Originally Posted by catherine
Yes, I also think about people who were planning to retire soon off of income from savings in stocks. But I feel that eventually the stock market will rally. If businesses go under, it much harder to recoup.Quote:
Originally Posted by Tybee
Flowers, I totally agree. Reno has closed bars, restaurants and non essential businesses. The casinos are closed voluntarily. So relieved for my DIL. It was scary being exposed to so many people daily.
Nope. This was just today/last night. Flat $1000. I'm trying to come up with his name. He was on the White House briefing a bit ago.Quote:
Originally Posted by catherine
Steve MnuchinQuote:
Originally Posted by Gardnr
Are they paying in silver?Quote:
Originally Posted by Alan
I don't give W much credit, because he doesn't deserve it, but he was the voice of calm reason when the reassured people that Muslims weren't the enemy, and that was a common theme for him, even before 9/11.
I read today, I think in the Wall Street Journal that we should do better than Europe due to private health care. Countries with socialized medicine lack enough ICU beds and ventilators. Many elderly already die earlier there due to lack of high grade facilities. That becomes more acute in an emergency.
note I’m not here to argue against one health care system or another, just sharing what I read. I also don’t believe in the elderly spending much of their last days on a ventilator
Our whole Bay Area has gone into a shelter-in-place order. School closings were announced last week and have already been closed since yesterday. All non-essential gatherings, traveling, and work are banned.
I'm glad I stocked up a few weeks ago so I don't have to be out there now, when everyone else is scrambling. I'm glad someone on here mentioned pet food a while back as I stocked up on that too.
I was thinking the same thing. I imagine people who were planning to retire in the near future and were trying to maximize income by staying in the stock market just a while longer to take advantage of the upward trend might be really stressed out right now.Quote:
Originally Posted by catherine
I'm so glad that we didn't buy that second property we were considering just a couple of months ago. It's unbelievable how much has changed in such a short amount of time.
I think that worry factor depends. It depends on how much one has and what lifestyle one requires. I retired last July. I am frugal and mindful of my spending. I am drawing a very small allowance each month-about 30% of what my take-home income was. I'll be fine. And since it looks like all our travel in the next 90 days will be cancelled, I won't even need to draw that $5k.Quote:
Originally Posted by Geila
I haven't seen anyone retirees around here, expressing significant concern.
G, many here have pensions or enough SS and savings that they are okay. Probably not so for people planning to retire in 5-10 years.
I do find it beyond insane that they are thinking of sending out raw checks of money and yet we still can't get sick time and so must spread corona if we get sick. I hate this government so much. I will tell them where to put the check. Oh I'd cash it. And then maybe I'd wander over to a quiet place to die.
I suspect that is very true! Current data is super scary: https://www.investopedia.com/article...alance-age.aspQuote:
Originally Posted by Teacher Terry
Fiftysomethings (Age 50–59)
Average 401(k) balance: $174,100
Median 401(k) balance: $60,900
Contribution rate (% of income): 10.1%
The jump in the contribution rate for this group suggests that many are taking advantage of the catch-up provision for 401(k)s, which allows people age 50 and over to deposit more (an extra $6,000 in 2019 and $6,500 in 2020) than the standard amount.3
Sixtysomethings (Age 60–69)
Average 401(k) balance: $195,500
Median 401(k) balance: $62,000
Contribution rate (% of income): 11.2%
Oh, I think people who are already retired totally dodged the bullet. It's the people who are not retired yet but were planning on 5 years or so and were still highly invested in stocks.Quote:
Originally Posted by Gardnr
I know a couple who is retiring this month and I'm assuming that they had already moved most of their investments to more stable vehicles.
Many people who are retired still keep 50 or 60 percent in stocks, since for years we have been in an environment where you cannot make enough on fixed income to have your money last your lifetime.Quote:
Originally Posted by Geila
So I disagree with what you are saying here, and I know I did not dodge a bullet myself, nor did my husband.
I also want to add, Geila, that people who are retired are in deep trouble now, if they moved their money to "more stable vehicles," as we are now in a no-interest environment.
I’ve been retired now since 2007. I’ve held around 55-60% in stocks. Last I looked Im down a bit from the high, but I keep several years in cash.
i am a little concerned as I’m buying a house the beginning of April, and mine doesn’t close till a few days later. If the buyers of my house decide to bail, I’ll have two homes. At least I can keep their $15,000 down payment. Things would be a lot better if they go through with the deal.
its not like we have been getting much interest before. Many will be able to refinance and get their home payments down.Quote:
Originally Posted by Tybee
My 2 siblings took a lot of their money out of the market a few months ago and recommended we do the same. Also luckily we can pay our bills and have some money leftover from our pensions.
I'm glad, Terry! Great timing!Quote:
Originally Posted by Teacher Terry
I believe that trying to time the market is foolish even in situations like this. We can live on a pension and a few minor ( more or less ) guaranteed sources and let the portfolio ride. On the 31st i plan on rebalancing back to 60/40 equities/debt. I’m in it for the long run.
I think the key part is "We can live on a pension and a few minor (more or less guaranteed sources and let the portfolio ride."Quote:
Originally Posted by LDAHL
I think your plan is very sensible, but what you describe is not true for everyone.
I didn't know they made fiat silver.Quote:
Originally Posted by bae
Our deferred compensation has a choice of getting a guaranteed amount of interest and you can’t lose your money. I feel very fortunate that we can live on the amount we have coming in even if we didn’t have any savings.
Pretty much our take, too. We were about 60% stocks going into the collapse. I did move most of our HSA money to an investment choice more likely to preserve it since we may need that money to pay health insurance premiums until we're Medicare age. But I'm leaving the rest be.Quote:
Originally Posted by LDAHL
The rising cost of living is going to chew away at all of our savings, even with mild or almost no inflation. We have to have at least some money in stocks to be able to preserve our purchasing power. Given the volatility of the market right now, it's anyone's guess where bottom is and when it starts going up again, it's going to go fast. The push down was over-done, the ride up will be over-exuberant. You don't want to miss it.
considering our government seems to be trying to kill us, I guess helping to pay the funeral expenses is only proper.Quote:
I didn't know they made fiat silver.
What asset allocation do you have now?Quote:
Originally Posted by LDAHL
Lately it’s been oscillating all over the place; but right now it’s around 54% equities, which I intend to rebalance to 60% at the end of the quarter.Quote:
Originally Posted by frugal-one
Prior to retiring, I was able to “buy” my military service years by transferring in part of my deferred compensation into my pension account. I also set up a small annuity and bond ladder. This and (eventually) social security provides our basic income plus a margin for error and minor disasters. The rest remains in a pretty conventional 60/40 portfolio of index funds for an inflation hedge, bigger disasters and bequests.Quote:
Originally Posted by Tybee
Not everyone has access to a pension, and some pensions strike me as very poorly funded, but I think anyone can use other tools to provide themselves a (fairly) safe income floor underneath a more volatile risk portfolio. Steve Vernon and Moshe Milevsky have written some useful books on the subject.
You and I are pretty much on the same page. I have HSA and RHS accounts in stable value or short term treasury funds using the same logic you are.Quote:
Originally Posted by SteveinMN
From layoffs to loss of investment funds I think the economic impact of the virus will be much worse than the health one. The beneficiaries will be the medical industrial complex, the feeding frenzy media and manufacturers of goods people hoard, with pretty much everyone else suffering. Mnuchin is talking 20% unemployment. I think it will be a recession at a minimum, possibly a depression.
I think it's going to be "interesting" to see how things shake out. Will people learn from this and change their lifestyles or will mass consumerism return once the virus is contained/treatable? What will become the new "normal"? And I think the divide between the "haves" and "have nots" is going to get even wider, quicker.Quote:
Originally Posted by Yppej
Some will change their lifestyles. Many won't. How many people can resist the advertising and the media and the lure of new and shiny objects when all of those promote the idea of spending more and more? How many people do we know who grew up in poverty and have seemingly overcompensated for that part of their lives by spending and consuming lavishly?Quote:
Originally Posted by happystuff
Some, certainly, will see this as a wake-up call. Many who find themselves without paychecks (essentially without warning) may decide they really do need an emergency fund. Others may conclude that extending themselves over several credit cards was a poor choice. Some will be home for several weeks and find that that clarifies unresolved issues in their lives -- choice of job, choice of partner, etc. and there will be changes coming from that awareness.
I am hopeful that there will be the resurgence of a notion that's been beaten down for about 40 years now -- that some things can be minimized or defeated only by us banding together, regardless of personal beliefs or status. COVID-19 is not something that can be warded off by prayers to the "correct" deity or by having millions in the bank or by being LBGTQA or by living in a city or the country. Perhaps others will recognize that "when we all do better, we all do better". Since this runs counter to many powerful interests, however, I'm not holding my breath in hope.
Well said, Steve.