@ccassaday wrote:
@Carmie wrote:
@ccassaday wrote:
@151949 wrote:
This happened about 30 years ago(pre IRA) so take that into consideration - my DH's company was sold and along with it , the pension fund. The new company did not currently have a pension plan nor did they want to get involved with one so they returned to each employee exactly what he had deposited in his fund. None of the money that the company had put in - no interest or earning it had accrued etc. They kept all that, all the employees got was reimbursed their contribution. So , at 43 years old my DH had to start all over from scratch to save for his retirement.
Even with a pension you need to get some mutual funds and open something like a 401k if your employer doesn’t offer it.
You can lose big time money placed in 401k's too. I lost six figures TWICE in my 401k throughout my working career.
They are not always as safe as they may seem. Anytime you invest where there is potential to make money on your investments, there is a risk.
You will make next to nothing in no risk accounts.
Of course you can. Especislly if you arent diversified. But over the long run you will have so much money. If you have 600k and lose 50k you will make that up. Plus if you are diversified the amount you lose from one stock will probably minimal by the. gain of another. As you get close to retirement its probably smart to rearrange your portfolio. Diversify diversify diversify.
You are young and you are inexperienced. You are going by what your parents did or you looked at someone's experience and came to a conclusion, but unless you personally lived it...you have no first hand knowledge. What you are saying is common knowledge and is in every brochure handed out by investment companies.
I lost over half of my money twice in my 401k. The market was much different than it is now. The first time, I recovered. The second time I did not. I would have been thrilled to only lose 50k.
Yes, I invested in other areas and I was diversified, so I wasn't broke 100%, but can tell you that it hurts to lose so much money in a period of a few days. I lost a couple Hundred thousand of dollars and it is gone, gone, gone.
I am wondering how you will make out when you are old and your parents are gone. It probably won't be easy. The future is uncertain. What worked yesterday, might not work tomorrow.
I know many people who were set up for their old age and things didn't go as planned. One couple was investing their money heavily for their future and most of their investments were stolen.
The wife is eligible for SS, the husband is not. He never paid into SS with his job and he had to work after retirement for 25 years more somewhere else. Her company went bankrupt and she got no pension. Her employer was skimming the money he was supposed to be putting into a 401k for years. The employees tried to get their money back, but it was gone. He went to jail, but what good was that?
The husband is eligible for SS now, but SS deducts the amount he is receiving from his employee pension each month, so he doesn't receive too much, but every bit helps.
My own sister lost her pension...company went bankrupt and she lost her deceased husband's pension when she became eligible for SS. She had a nice nest egg and inherited some money, but she got old and sick and her home needed repairs, etc.
Long story short, she ran out of money and she ain't dead yet. Currently, I am helping to support her and another family member who is old and sick too. She has been on disability SS since she was in her 50's. She is in her 80's now.
SS Is not enough live off of and many people, will outlive their savings and investments. SS used to give out money like crazy, but they have cut back on eligibility and I fear it will get worse.
Sadly, You can no longer invest your money and live off of the interest like people used. to do.
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