How are your investments doing?

[Drstrangeglove]

Just remember that until you sell, those gains are fiction.

We had to reposition. So, some of it isnt fiction.

 

[mark in portugal]

Cash is fiction too; so I don't really see such a huge difference.
Stocks go up and down, which means cash goes the other way.

 

[riptides]

....

Some companies have great employee stock plans and I know a few that did well with Columbia HCA stock with a built in savings for employee purchases.

At one time in my career we had stock grants and purchases. I stopped the purchases as I was keenly aware of industry direction and the lack of marketing on the companies new CEO. The grants went aways slowly with the completion picking up. I was selling most as fast as I could turn them around. Good thing too, we were bought out, then bought out again. Industry consolidation. I tracked the shares I would have had for a long while. Let's just say, I made the right choice.

 

[Oaktree]

So on brand of you...

???

 

[Oaktree]

At one time in my career we had stock grants and purchases. I stopped the purchases as I was keenly aware of industry direction and the lack of marketing on the companies new CEO. The grants went aways slowly with the completion picking up. I was selling most as fast as I could turn them around. Good thing too, we were bought out, then bought out again. Industry consolidation. I tracked the shares I would have had for a long while. Let's just say, I made the right choice.

The only company I ever worked for that offered stock options was my very first job right out of college. I was 20 when I started there, and investing was the furthest thing from my mind.
Only other case was in the mid-90s, the company I worked for then (privately owned) was refinancing their business loan, and offered the chance for employees to buy in. A couple of us did, and did quite well with that investment. When the majority owners decided to sell out 6 or so years later, my return had roughly tripled.

 

[grsthegreat]

I was with the electrical union for only 2 years back in early 2000’s before 9/11 occured. Afterwards the union contracts started drying up and the company i worked for went from 250 journeyman down to 6 or so within a few months. I had just gotten my contractors license renewed and secured a business license to do some sidework, so instead i went full time into it. When i left the company i left my matching funds investments alone with the investment company, as it was allowed. Mind you, i only worked there for about 2 years. About 8 or 9 years later my current investment company wanted me to centralize my holdings, so i moved the retirement funds. I had no idea they raised to nearly $110,000 during that time. I really never paid it any attention.

The account i moved it into, along with wifes retirement funds , are now into the millions. I love compound interest.

Just yesterday i decided to start withdrawing a yearly stipend as i reached the age where the extra funds wont effect my SS payments. We are going to use the money for vacations, helping family members, friends and church as we wish. We dont need the money to live on, and want to use it for some good. Heck, ya cant take it with you, right.

 

[riptides]

I had thought RMDs would influence in a bad way SS payments?

 

[grsthegreat]

I had thought RMDs would influence in a bad way SS payments?

not after a certain age...depending on birth year

 

[Larry Caldwell]

I had thought RMDs would influence in a bad way SS payments?

Only if it pushes you into a higher tax bracket for SS taxation. I will pay federal income tax on 85% of my SS because of pensions, so the RMDs are just more taxable income.

 

[Larry Caldwell]

not after a certain age...depending on birth year

If you are old enough to have RMDs, you can earn as much as you like and it won't affect SS.

 

[California]

And a word to the kids about RMDs - I wish now I had done some Roth conversions when that became available. But I was already retired so I didn't qualify.

Now several years into the (growing, taxable) RMDs, the RMDs are pushing taxable income, and the resulting income tax, higher. Due to inflation, taxable income is a higher number than when I funded the IRAs long ago. Looking back, it might have been optimum to pay the tax and make Roth conversions.

The RMD charts are brutal. They expect you to die soon so every year they require even greater RMDs. To exhaust your IRA quickly. In my case Mom, and her father, lived to 98. Mom's older sister, to 107. I don't want my IRA balance to decline as fast as those charts.

Today, it may be better for some to use only Roth for retirement savings. (Unless you have an employer match). Or, make a major Roth conversion in a low-income year.

 

[RayIN]

California; I have my RMD's electronically sent to a savings acct. From there I invest the money in short-term bonds, which is working out OK.

My big mistake was about 20 years ago . A friend had retired from the USAF and had always dabbled with stocks. He called me one day and invited me to join him in buying Tesla stock, which at that time, to the best of my memory, about $17/share.
I declined, choosing to remain with mutual funds.
Here we are now, my funds have performed well IMO, but he is now a millionaire several times over, now lives in Denver in a new house for which he and his wife paid cash. They just last year bought a 2nd Tesla plaid, again paid cash.
Last year I bought this tractor, paid cash, the funds have recovered the purchase price.
That's what I get for being conservative.

 

[CalG]

All three of my kids, spouses and their children are arriving at our home tomorrow!
My wife and I are excited! Family, fun, and food.....

Our investments have returned yields beyond our wildest expectations!

 

[California]

....That's what I get for being conservative.

Yeah but its blind luck, per Warren Buffet and Jack Bogle. Trying to beat the market you have to bet against every investor and stock analyst in the world. To exceed what they, on average, are accomplishing.

For IRAs and Roth, wife and I each chose our own strategy. Similar income and investable opportunities. She reads widely, over the years she invested in a lot of quality funds and a few stocks, based mostly on reading Kiplinger magazine etc. She has done well but I have done very slightly better with a simpleminded strategy, pure S&P500 fund at Fidelity and don't think about it. Based on research that this strategy will exceed the returns of 85% of retail investors.

However: A few years ago wife insisted we should put joint non-retirement funds into buying the New Best Thing. Nvidia stock. I refused, I haven't followed it and didn't care to learn. Big mistake, it has since exploded like your friend's early Tesla stock. Or her old work buddy's early Apple stock. His experience is like CalG's above, he takes the whole extended family to Hawaii occasionally etc.

Oh well ... I was able to retire at 54.

 

[goeduck]

And a word to the kids about RMDs - I wish now I had done some Roth conversions when that became available. But I was already retired so I didn't qualify.

Is that true, I have not heard that you cannot convert after retirement.

 

[CH4Ohio]

Is that true, I have not heard that you cannot convert after retirement.

You CAN convert after retirement. You have to satisfy your RMD requirement first (if applicable) but can convert any amount in addition to that.

 

[CH4Ohio]

The RMD charts are brutal. They expect you to die soon so every year they require even greater RMDs. To exhaust your IRA quickly. In my case Mom, and her father, lived to 98. Mom's older sister, to 107. I don't want my IRA balance to decline as fast as those charts.

Agree that it would be nice to have all (or more) in Roth instead of traditional IRA. However, the tax code allows us to defer taxes on our IRA money. The RMD scheme is aimed at forcing us to take distributions and finally pay these deferred taxes.

You don't have to "exhaust" your retirement savings. You just have to take the Required Minimum Distributions and finally pay the taxes. You don't have to spend the remainder. Reinvest or simply roll your RMDs into an investment account or savings account and put that post-tax money back to work for you.

 

[Hay Dude]

California; I have my RMD's electronically sent to a savings acct. From there I invest the money in short-term bonds, which is working out OK.

My big mistake was about 20 years ago . A friend had retired from the USAF and had always dabbled with stocks. He called me one day and invited me to join him in buying Tesla stock, which at that time, to the best of my memory, about $17/share.
I declined, choosing to remain with mutual funds.
Here we are now, my funds have performed well IMO, but he is now a millionaire several times over, now lives in Denver in a new house for which he and his wife paid cash. They just last year bought a 2nd Tesla plaid, again paid cash.
Last year I bought this tractor, paid cash, the funds have recovered the purchase price.
That's what I get for being conservative.

I want to be like your friend. lol
I am very comfortable, but want to build a massive nest egg rather than the “so-so” one I have now.
I actually own a decent block of Tesla stock, but bought in way too late (~$200/share)
I tried Critical Metals, but that has disappointed.

Painfully obvious question, so save the “everyone is” answer, but who is the next Tesla, Apple, etc?? I already own plenty of FXAIX, but looking for a faster grand slam home run…..lol

My guess is like a SpaceX or another Musk venture that goes public? Anyone have any hunches?

 

[drssg]

And a word to the kids about RMDs - I wish now I had done some Roth conversions when that became available. But I was already retired so I didn't qualify.

Now several years into the (growing, taxable) RMDs, the RMDs are pushing taxable income, and the resulting income tax, higher. Due to inflation, taxable income is a higher number than when I funded the IRAs long ago. Looking back, it might have been optimum to pay the tax and make Roth conversions.

The RMD charts are brutal. They expect you to die soon so every year they require even greater RMDs. To exhaust your IRA quickly. In my case Mom, and her father, lived to 98. Mom's older sister, to 107. I don't want my IRA balance to decline as fast as those charts.

Today, it may be better for some to use only Roth for retirement savings. (Unless you have an employer match). Or, make a major Roth conversion in a low-income year.

On a positive note, this is about the definition of a high-class problem. Your income in retirement is significantly higher than when you were working, and it pushed you into a higher tax bracket.

Perhaps a representative from the Jerry Lewis estate will organize a telethon for you!

 

[Snobdds]

I want to be like your friend. lol
I am very comfortable, but want to build a massive nest egg rather than the “so-so” one I have now.
I actually own a decent block of Tesla stock, but bought in way too late (~$200/share)
I tried Critical Metals, but that has disappointed.

Painfully obvious question, so save the “everyone is” answer, but who is the next Tesla, Apple, etc?? I already own plenty of FXAIX, but looking for a faster grand slam home run…..lol

My guess is like a SpaceX or another Musk venture that goes public? Anyone have any hunches?

Most conventical wisdom with stocks centers around finding the next big stock, buying early, and riding it out for 15 years to get appreciation.

That is crazy in my view, absolutely crazy. There are plenty of stocks that make 10% moves all the time. I will skim those 10% moves all day, every day. Stocks are trend based things, they don't behave in random fashion.

A person could capture 10, 10% moves in one year and have the same return as a Tesla over 15 years. The number of different stocks out there with swings far exceed the number of Teslas, Nividas, or the SPX funds.

So don't wait to find the next thing, it's already out there for the taking.