Retirement thoughts Past Present Future

   / Retirement thoughts Past Present Future #822  
A couple of years ago a former employer’s defined benefit pension fund finally offered a full lump sum payout. This was an ‘old school’ pension that had been frozen or orphaned after an ugly takeover by a Brazilian based company (JBS). I took that lump sum and ran. Rolled it into an IRA.
 
   / Retirement thoughts Past Present Future #823  
A couple of years ago a former employer’s defined benefit pension fund finally offered a full lump sum payout. This was an ‘old school’ pension that had been frozen or orphaned after an ugly takeover by a Brazilian based company (JBS). I took that lump sum and ran. Rolled it into an IRA.

Probably a very smart move. A pension is not guaranteed against the underlying fund going insolvent. My dad lost most of his pension and all of his insurance after one of those fancy acquisition maneuvers. The retirees formed a class action and won a lawsuit, but there was less than $1 a piece left in the fund to pay them. I don’t remember the percentage, but the guaranteed portion was quite small compared to the original amount.
 
   / Retirement thoughts Past Present Future #825  
Well, my retirement funds look like hell the past 12 months 🙄

If this is the strongest economy ever, I’d like to go back to below average.
It's a matter of perspective. Stocks are only off about 20%. Measure that against the phenomenal gains of the last decade and you are still way ahead. I've put stock purchases on hold for the last couple years because I have an aversion to buying high, but I suspect the market with drop another 10%. If it does, I'll go back to rolling dividends into stocks instead of taking them in cash. Maybe. There are other assets worth looking at. I have bonds maturing in November that will be looking for a bargain in assets too.
 
   / Retirement thoughts Past Present Future #826  
It's a matter of perspective. Stocks are only off about 20%. Measure that against the phenomenal gains of the last decade and you are still way ahead. I've put stock purchases on hold for the last couple years because I have an aversion to buying high, but I suspect the market with drop another 10%. If it does, I'll go back to rolling dividends into stocks instead of taking them in cash. Maybe. There are other assets worth looking at. I have bonds maturing in November that will be looking for a bargain in assets too.

You’re fortunate. It’s the perfect time to be making a shopping list for after the landing. I agree with your assessment on further declines. This is the dump after the pump. It’s time for the big money to empty the stimulus money out of the market and shake out the work from home day traders. My speculations are that we will reset to around where we were in March of 2020, prepandemic, then things will level off and resume a more normal trajectory than we’ve seen over the last two years.
 
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   / Retirement thoughts Past Present Future #827  
Seeing people getting hyped up about stocks that are trading at 100 times earnings reminds me of the dotCom crash. Nobody ever learns. As soon as you hear "analysts" saying "It's different this time.", it's time to head for the exits.
 
   / Retirement thoughts Past Present Future #828  
Time to plant money trees!
In grad school we were tasked with finding the best investment over a 30 year period. We had to both qualify and quantify it. I had a grandfather that planted trees as his hobby. He had everything from walnut to cherry trees growing in his orchard. He also loved to plant tree rows by the hay meadows. When I was in High School, some guy offered him stupid money for all his trees he planted 50 years prior. He made a nice little profit, but he only sold about 25%. So it got me thinking, could that be a low cost, high yield investment over 30 years. Did the math and everything and the numbers came out good. So that is what I did my project on, hardwood lumber, in a setting that grew straight clean wood. It costs very little to plant and mother natures does the heavy lifting, but good desirable lumber brings in good money.

So the past 5 years I have been putting some of my colleging to work. Every summer I plant more hardwood trees in my orchard. I will never see the money, but the kid will.
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