New Tractor Sales Are Declining

[Sid Post]

That's the problem with the whole 401K retirement system/plan. It's toss up if the market cycle is in your favor or not the last time you clock out to go home.

Not really if you follow recommended investment profiles. You need growth to keep up with inflation but, you also need investments in stable cash-oriented investments to carry you through the down years.

For people in Mutual funds, look at the "year plans" that are managed for a retirement year like 2040 or 20xx. That is a great help to new investors in 401K or other retirement accounts "balance" growth versus bonds and similar investments.

 

[TN8Man]

Most of it is digital already.

Not sure what you mean.

 

[jyoutz]

The big elephant in the room.
The 2020 2 trillion dollar stimulus bill known as the CARES act allowed people to dig into their 401K up to 100K without penalty, and many have. At the end of 2021 the average 401(k) balance was under 142K according to Vanguard. Last year and this year so far the stock market is underperforming where many people saw reduction in their 401K. But even if people still had the 2021 average of 280K at age 65+ how long would that money last when the stock market continues to underperform?

Since the implosion of pensions in the private sector, people have become dependent on the stock market for retirement income. This is a serious problem for our country, because stocks have always had swings in value and a downturn is devastating to someone a few years from retirement. $280k isn’t an adequate retirement fund even in a perpetually good market. Three years ago, I left the market and went to cash in anticipation of retirement within 5 years. Did I miss some gains? Of course, but I sleep better knowing that I’m not going to experience a 2008 or 2018 type of loss.

 

[Sid Post]

What a lot of people don't realize about the money managers on Wall Street is their compensation is not strictly tied to the performance and growth of a stock. They are paid fees for managing other peoples capital regardless of whether the stocks perform well or not. And if you sit down and do the numbers it's not hard to understand how they get rich doing it. If you have a billion dollars under management and you get 3%- 6% fee for managing it you're set for the rest of your life. This is the part of the story the media always conveniently leaves out when they dote on people like Warren Buffet. You will never make the money he has made in 10 lifetimes just buying and holding "good stocks" as he has so famously preached all these years.

Look up "fiduciary"!

Money management has expenses like any business and I don't expect people to work for me for free. Whether they are paid too much or too little is a different topic though.

The worst part is the "owners" investing their retirement in self-directed 401K's who think they know a lot more than they actually too.

 

[Sid Post]

Not sure what you mean.

Most of my banking does not involve tangible physical cash money.

PayPal, Visa/MC/Discover/AMEX/etc., and online banking are dominant in modern business. A few Luddites use checks though.

Myself, I do a lot of cash personally because I generally detest having my purchases of coffee, or soda, or fast food tracked by "big brother". Store loyalty cards are an insidious invention to get around cash customers like me. If I don't use my "loyalty" number at the only grocery store in town, most of my products will have a 20% to 40% markup compared to the loyalty program price.

 

[TN8Man]

Look up "fiduciary"!

Money management has expenses like any business and I don't expect people to work for me for free. Whether they are paid too much or too little is a different topic though.

The worst part is the "owners" investing their retirement in self-directed 401K's who think they know a lot more than they actually too.

I look at self-directed 401K's as the best part but your right, if you don't know what your doing your 401k could go south quickly.

 

[TN8Man]

Most of my banking does not involve tangible physical cash money.

PayPal, Visa/MC/Discover/AMEX/etc., and online banking are dominant in modern business. A few Luddites use checks though.

Myself, I do a lot of cash personally because I generally detest having my purchases of coffee, or soda, or fast food tracked by "big brother". Store loyalty cards are an insidious invention to get around cash customers like me. If I don't use my "loyalty" number at the only grocery store in town, most of my products will have a 20% to 40% markup compared to the loyalty program price.

Digital currency only exists in the digital form meaning you can't go to your bank or ATM and get out cash.

 

[jyoutz]

Most of my banking does not involve tangible physical cash money.

PayPal, Visa/MC/Discover/AMEX/etc., and online banking are dominant in modern business. A few Luddites use checks though.

Myself, I do a lot of cash personally because I generally detest having my purchases of coffee, or soda, or fast food tracked by "big brother". Store loyalty cards are an insidious invention to get around cash customers like me. If I don't use my "loyalty" number at the only grocery store in town, most of my products will have a 20% to 40% markup compared to the loyalty program price.

Why does “big brother “ care about when you buy coffee? The people who care are the advertisers and marketers.

 

[Cahaba Valley Farm]

Not really if you follow recommended investment profiles.

Everyone who is invested in equities right now has lost money. Many have lost 20% or more. There are millions of retirees that are not able to retire now because of the change in market cycle. There is no "magic" investment profiles that can change that.

you also need investments in stable cash-oriented investments to carry you through the down years.

Define stable cash-oriented investments.

Look up "fiduciary"!

Don't need to as I am one.

Money management has expenses like any business and I don't expect people to work for me for free. Whether they are paid too much or too little is a different topic though.

I was not implying that they should work for free or bringing into question the fairness of their compensation. My only point was to point out that they win and make money regardless of what the market does. The average investors compensation is tied to the ups and downs of the market. The money managers are also getting rich from managing the money not from buying and holding stocks.

 

[Cahaba Valley Farm]

Not sure what you mean.

When was the last time you saw someone paying cash?