OT - Dow plunges 1,175 - worst point decline in history

[Burnette]

Originally Posted by Ozz

When my son graduated from HS last year, we set up a Fidelity account for him with a couple thousand $$ as his gift. Talked him through investment options and let him pick what he wanted.

Also told him to look up "compound interest" to emphasize the importance of investing over time...

I credit my own father with instilling the importance of saving and planning in me.

Hopefully your son will keep contributing and watch the market to learn.

[Ozz]

Originally Posted by fa63

That, but also the simpler fact that most people just don't have any extra money to invest... And investing "even a little" doesn't necessarily do all that much; for example, if one were to put away $100/month for 40 years at 6% net return, it still amounts to less than $200K (though still better than nothing, of course).

I suspect most of us on this forum are VERY far removed from what a typical American experiences financially.

Avg S&P 500 return (Index Fund) is closer to 8%.....your $100 per month would be closer to $350,000 over that 40 years...not rich, but you as you said, better than nothing...results in income of $2200/month for about 25 yrs..(at 6%)??

Time and discipline....

Originally Posted by Burnette

I credit my own father with instilling the importance of saving and planning in me.

Hopefully your son will keep contributing and watch the market to learn.

That's the plan....

[veloduffer]

Originally Posted by Tony T

A lot of people have their 401(k) in the market, so the market is not a thing that only wealthy do.

About half of US households don't have access to 401(k) products, which is largely due to about have the US labor force is employed by small-medium businesses that can't afford to set up a 401(k).

Also, the market has been largely supported through buybacks.

In 2019 investors have taken a total of more than $156bn out of mutual and exchange traded funds this year, according to data from Refinitiv Lipper — the highest annual figure since the company started collecting data in 1992. Equity mutual funds had outflows of $248bn, while $92bn was drawn into equity ETFs.

Investors put their monies into bonds and cash/money market, which had record inflows.

[Tony T]

Originally Posted by veloduffer

About half of US households don't have access to 401(k) products, which is largely due to about have the US labor force is employed by small-medium businesses that can't afford to set up a 401(k).

My comment was in response to the post saying "the market is a thing wealthy people do".
The half that do have access to a 401(k) are not all wealthy.

[fa63]

I think that depends on one's definition of wealthy. For example, one might think that having $500K in a 401(k) at retirement age doesn't make one wealthy (and I would tend to agree with that person), but to those less privileged, that is a lot of money...

My parents were lower middle class in their working years, and never had any money in the markets. When I told my dad how much money my wife and I have invested (we are in our mid 30s), I thought he was going to have a heart attack. To him, we are wealthy.

Originally Posted by Tony T

My comment was in response to the post saying "the market is a thing wealthy people do".
The half that do have access to a 401(k) are not all wealthy.

[Tony T]

DOW new intraday record (29,054), but fails again to close above 29,000.

[Tony T]

Another DOW Day, Another DOW IntraDAY Record….

[Jeff N.]

Originally Posted by Tony T

Another DOW Day, Another DOW IntraDAY Record….

Nice while it lasts...

[buddybikes]

Originally Posted by veloduffer

About half of US households don't have access to 401(k) products, which is largely due to about have the US labor force is employed by small-medium businesses that can't afford to set up a 401(k).

Also, the market has been largely supported through buybacks.

In 2019 investors have taken a total of more than $156bn out of mutual and exchange traded funds this year, according to data from Refinitiv Lipper — the highest annual figure since the company started collecting data in 1992. Equity mutual funds had outflows of $248bn, while $92bn was drawn into equity ETFs.

Investors put their monies into bonds and cash/money market, which had record inflows.

Think about it...why can't it be easier for SMB and individuals to create a 401K? This like healthcare is all setup around employment, which is insane looking at 50,000ft.

[Mzilliox]

does all of this upward metric matter much when people are drinking and drugging themselves to death at the highest rates this country has ever seen? whats the tradeoff for 29k dows?

i mean go dow, i like you making me money and all, but id gladly trade most of that, for a little of the happiness to go around

[Tony T]

Originally Posted by steveandbarb1

Think about it...why can't it be easier for SMB and individuals to create a 401K? This like healthcare is all setup around employment, which is insane looking at 50,000ft.

Worth a mention that Self-Employed individuals can easily set of with a broker an individual self-employed 401(k) plan.

[Ozz]

Originally Posted by Tony T

Worth a mention that Self-Employed individuals can easily set of with a broker an individual self-employed 401(k) plan.

or an IRA if not self employed...

[bigbill]

I rolled an old 401 and my military Thrift Savings to an IRA at my bank (USAA). It's done about par with the market. I see the balance and changes when I do my online banking.

[likebikes]

DJIA closed >29,000 for the first time EVER!!

30k is the next milestone to be smashed.

[veloduffer]

Originally Posted by Ozz

or an IRA if not self employed...

Tax deductibility is different from IRA and 401k. IRA has income caps on deductibility, no such cap for 401k.

Also the tax benefit for a 401k is immediate, while the tax deduction for an IRA is one year later when you file your taxes.


Sent from my iPhone using Tapatalk