At 50+ age, is it too late to get into trading and investing in the stock market? Or are you a long time investor in stock market shares? So, what are the biggest value profit, money-making movers in the stock market? Do you read, follow up Businessweek magazine everyday and see how your dollar is fairing up? Are Data Broadcasting companies, Facebook and Google still the highest and outstanding ranking market capitalists in the US and the world? What if your stocks value end up going to zero-- underlying companies would end up bankrupt? What's your plan B with taking advantage of your stocks-- as you identify patterns in some stock trading prices as they move higher , or falling in the downtrend, or sideways in the trade? I used to wonder about finance and economy. And finding security in its blanket. Maybe, as I grow older, none of these do really matter? As long as we have food on the table and roof over our heads, we're healthy and drug-free to maintain good health, and our children have grown up.
I don't think there is an age limit for investing, otherwise ask Warren Buffet, as in example. Whatever it all depends on how much you would be willing to potentially lose without affecting your finances. Investing, tracing stocks, bonds and even Forex are volatile markets where there is always a risk to lose, and while you can win instead, it's necessary weigh a possible financial slap that may happen.
The stock market is really taking a tumble. I'm not sure what to do right now. CDs still aren't paying anything. Bonds usually do better when stocks are down but that doesn't seem to be the case now. I'm going to talk to my broker tomorrow and try to figure this mess out. Anyone here have any ideas?
At pur age the general rule has been to switch from stocks to less risky investments such as CDs and bonds. But, for the last decade or so interest rates have been the lowest in history. CDs are worthless, they don't keep up with inflation. Mutual funds have done poorly also. What to do? What I've done is invest in solid companies that pay good dividends. Actually only one company so far. I buy when the stock market takes a tumble such as right after Brexit, and twice since then. I bought more just yesterday. I buy at those times to get the lowest possible price, hoping to make money if the stock prices recover and at the same time receiving income from the dividends, which will be reinvested in more stock. I don't know if my strategy is going to pay off, but my broker thinks it will. My money had been sitting in the bank all this time doing nothing but losing buying power. Caution: There are many companies that pay much higher dividends than I'm getting, but those are mostly new and unproven companies, very risky. I suggest you stick with solid, well known companies that have a proven record of paying good dividends.
I bought my son some Microsoft stock several years ago and that has about quadrupled since he has had it. Now I am slapping myself upside the head, for not buying some for myself. Some people are also putting part of their IRA in gold, as a hedge against inflation, and an investment of sorts. Also, although risky; people who have invested in alternative currencies have done well. Interestingly, I am watching the Big Short on Netflix, about the rogue investors who accurately foresaw the collapse of the housing market, earlier in the decade.
I have a phobia with stocks. When the Pager was the most convenient communication for those with no landline, we bought a Beeper brand. But part of the purchase is an offer of 300 shares of its stocks for 20 pesos = 6,000 pesos which is big money in 1994. We were expecting the shares of stocks to be higher in value and it did after a year, from 20 per share, it was 20.50 which is an appreciation. But in the following years, the cellphone emerged which killed the pagers. Oh, oh, the value of stocks tumbled until it was down to less than 1 peso per share. So you can imagine the loss, from 6,000 pesos, our stocks are now valued at 300 pesos. The company was unable to recover.
@Sheldon Scott "Anyone here have any ideas?" Many years ago, I bought good quality corporate bonds on "margin". The brokerages were willing to loan up to 70% of the purchase price, the buyer (me) had to put up 30%. By carefully choosing bond issues relating to their dividend structure, remaining life, and popularity, it was actually easy to buy bonds thusly which paid dividends exceeding the interest due on the margin! Thus, one was able to "lever" a large bit of bond value without being heavily invested, and make some "gravy" at the same time. No idea if prevailing low interest rates might still allow the scheme to work. No idea if restrictions on margin buying might have been imposed by the Fed. No idea, but not surprised if, folks may find my scheming a bit half-witted! Frank
I retired at age 54 not really needing my 401k. At age 59 I checked with the firm administering my account to see what I could expect as a monthly pay out. The representative explained what I could expect and that once begun in 15 years it would all be paid out. That was the pay out arrangement was between the firm & the company I worked for. I asked if there was some way to extend the payout because as most everyone else I was concerned about not having enough money to live comfortably for the rest of my life. The recommendation to convert the 401k into self directed IRA & a traditional IRA would meet government restrictions and make it possible to delay pay out until I reached 70 & 1/2. During those 11 years having the money in IRA's untaxed made it possible to invest boosting the dollar amount. Prior planning made it possible to wait until 70 !/2 not needing the income. The intent of this post is to advise those before reaching 59 1/2 that have a 401k to check with their account administrators to see if once beginning withdrawal the 401k will be paid out in 15 years. For me the prospect of at age 74 1/2 having zero income from a retirement plan was not acceptable. Depending on Social Security as the only income when so many stories about failure wasn't an option. I checked on how long payouts would last by taking only the MRD. I'm good until I am 128 years old. Better yet, my wife will have automatic access to what isn't used.
If you don't need the 401k monthly pay to live on now then you can invest it in stocks, mutual funds or anything you wish.
I did exactly the same thing Sheldon. I moved my 401K$$$ to a IRA at age 57. I am now 84and have never been sorry. Of course I had to take MD at 70 1/2, no problem.
Yeah, the RMD is a pain, but it goes with the program. I take out enough to cover the Distribution usually in January of each year as the penalties for NOT doing it are horrendous! I originally thought I would last till 85, but it appears it will be longer as my wife continues to work 'cause she wants to. I basically had to retire because I could no longer hear well enough to speak on the phone except on speaker, and in my profession that was not allowed. I then broke my back, so that ended any hope of me going back to work. I did the same as others and moved my stuff mostly into self-directed IRAs so I can take it out or leave it, and move it as I wish.
The Keogh Plan was also known as HR 1o Plan At different times in my working life I had one or the other of the above.
Yes; we have 401k's, IRAs, and received lump-sum company pensions. We had the choice of monthly pensions but both of us chose a lump sum.
Boeing deposits my 37-year Retirement Check in my Checking Account on the first of every month. They have been faithfully doing this for 21 years. The US Government has been depositing my Socialized Security Check in my Checking Account on the third Wednesday of every month (per my choice), also for the past 21 years. Yowzah! Hal