Author Topic: Why You Shouldn't Save for Retirement  (Read 6141 times)

blackjack

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solon

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Re: Why You Shouldn't Save for Retirement
« Reply #1 on: October 11, 2014, 07:26:39 AM »
Can you give us the nickel summary?

blackjack

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Re: Why You Shouldn't Save for Retirement
« Reply #2 on: October 11, 2014, 07:30:36 AM »
Market is way overvalued, way to risky, bubble that will burst...

solon

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Re: Why You Shouldn't Save for Retirement
« Reply #3 on: October 11, 2014, 07:44:46 AM »
ahh... all market-timing stuff then

Johnez

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Re: Why You Shouldn't Save for Retirement
« Reply #4 on: October 11, 2014, 08:22:24 AM »
Hilarious video.  We need a counterpoint every now and again though, otherwise we fall into group think.

The premise of the video is that we should not save because gov't is evil and will steal your 401k and IRA by taxation.

Yes, he is advocating idiocy for the sake of some future event that has a near zero chance of happening.  One which can be mitigated even by diversifying your holdings (realestate, etc.).

sirdoug007

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Re: Why You Shouldn't Save for Retirement
« Reply #5 on: October 11, 2014, 09:23:20 AM »
Yeah, just buy the fancy car and work until you die. Let me know how much fun that is when you are 80.


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GreyMatters

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Re: Why You Shouldn't Save for Retirement
« Reply #6 on: October 13, 2014, 06:14:29 PM »
A possible (probable?) retirement bubble and an overvalued market is a valid point to bring up, I think.

What are your rational thoughts on these two ideas?

iamadummy

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Re: Why You Shouldn't Save for Retirement
« Reply #7 on: October 13, 2014, 06:20:27 PM »
i just cashed out my ira

wtjbatman

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Re: Why You Shouldn't Save for Retirement
« Reply #8 on: October 13, 2014, 07:58:38 PM »
i just cashed out my ira

Already seeing threads on Bogleheads asking if now is the time to invest in gold.

Cheddar Stacker

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Re: Why You Shouldn't Save for Retirement
« Reply #9 on: October 13, 2014, 08:29:16 PM »
A possible (probable?) retirement bubble and an overvalued market is a valid point to bring up, I think.

What are your rational thoughts on these two ideas?

What is a retirement bubble?

The market is overvalued, or was a few weeks ago. And I keep buying. Stocks will perform just fine in the long run. I will buy them when overvalued, because we don't ever know where the top or bottom is.

GreyMatters

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Re: Why You Shouldn't Save for Retirement
« Reply #10 on: October 13, 2014, 11:29:02 PM »

A possible (probable?) retirement bubble and an overvalued market is a valid point to bring up, I think.

What are your rational thoughts on these two ideas?

What is a retirement bubble?

The market is overvalued, or was a few weeks ago. And I keep buying. Stocks will perform just fine in the long run. I will buy them when overvalued, because we don't ever know where the top or bottom is.


The touches on a retirement bubble briefly. Then idea is that all the retirement money from the Boomers is inflating a bubble in the market. Is Boomer money solely responsible for a high market valuation. I doubt it. But, they've got a lot of money in the market and as they begin withdrawal and reallocation, how is that going to affect pricing?

I really don't know the definitive answer.

The idea that the market is overvalued is certainly something I'm factoring into my strategy though. At 31 and the beginning of my accumulation phase, I've got plenty of time to wait for a major correction and/or crash to invest into something like a total market index. I'll build up my war chest by sitting on cash, learn more about investing, and look to for other opportunities in the meantime.

I can't help be suspicious at a time when so many are saying "the market always goes up". The same thing was said about tulips and house prices. Sure, they always go up over time, but I'd still rather get a good deal.

Sid Hoffman

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Re: Why You Shouldn't Save for Retirement
« Reply #11 on: October 14, 2014, 12:20:20 AM »
The touches on a retirement bubble briefly. Then idea is that all the retirement money from the Boomers is inflating a bubble in the market. Is Boomer money solely responsible for a high market valuation. I doubt it. But, they've got a lot of money in the market and as they begin withdrawal and reallocation, how is that going to affect pricing?

I can't find the exact numbers on it, but I do know I've read articles that state the current population of workers far outnumbers the boomers.  So while boomers are finishing off their retirement contributions and switching to taking distributions, there's still a massive number of workers still decades away from retirement and socking away savings into their own retirement accounts.  Also, there's been a lot of news about how possible slowdowns in other national economies is starting to drive investment from overseas into the US stock market.  Since the EU has 3x the population of America, if even some of their investors are putting money in US based mutual funds, that's a metric boatload of money flowing over the Atlantic into American stocks.

marty998

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Re: Why You Shouldn't Save for Retirement
« Reply #12 on: October 14, 2014, 12:43:30 AM »
Even if the boomers draw down their investments what do you think they are going to do with it?

SPEND IT!

What happens when people spend money? Companies make profits.

I wouldn't worry too much about this. Nobody can predict to what extent the sharemarkets will be impacted by it all. Keep calm, carry on.

Mstrlucky74

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Re: Why You Shouldn't Save for Retirement
« Reply #13 on: October 14, 2014, 03:36:57 AM »
Dollar cost averaging ???

soccerluvof4

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Re: Why You Shouldn't Save for Retirement
« Reply #14 on: October 14, 2014, 04:13:59 AM »
Buying the dips...which lately has been daily and will continue to do so.  Sid Hoffman makes alot of valid points. This is not the first or the last time people "Panic" or become complacent when the market dips.

Fuggled

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Re: Why You Shouldn't Save for Retirement
« Reply #15 on: October 14, 2014, 09:55:58 AM »
Based on everything I've read here and in the mainstream media, I'm pretty sure none of the boomers have any retirement savings and they're all going to work until they die.  So, no need to worry.

sheepstache

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Re: Why You Shouldn't Save for Retirement
« Reply #16 on: October 14, 2014, 10:15:54 AM »
Based on everything I've read here and in the mainstream media, I'm pretty sure none of the boomers have any retirement savings and they're all going to work until they die.  So, no need to worry.

Seriously. And don't forget all the older people who can't get jobs and so are already sort of involuntarily retired.

Bob W

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Re: Why You Shouldn't Save for Retirement
« Reply #17 on: October 14, 2014, 10:19:26 AM »
Even if the boomers draw down their investments what do you think they are going to do with it?

SPEND IT!

What happens when people spend money? Companies make profits.

I wouldn't worry too much about this. Nobody can predict to what extent the sharemarkets will be impacted by it all. Keep calm, carry on.

All the boomers I know who pulled their money out at the bottom in 08/09 promptly put it into CDs.  They didn't spend it.   Of course when they die their kids will spend the shit out of it in like 90 days! lol

We always have to remember that 90% of people are not real investors and will lose money in the stock market by selling low mostly.