Topic: Managed retirement funds safe to invest or should I stick with cash? (Read 287 times)

Maybe he wanted to front run Delta's April 9th earning report. There are some pretty brutal expectations, like a 90-100% revenue drop year over year. If the financials are bad enough, the 70% drop DAL saw already may not have been the end of it.

There's a whole lot of uncertainty around travel. I know the model the White House is using to put a ceiling on COVID-19 deaths assumes social distancing and travel restriction measures stay in place through August. I'm not sure if the initial selloffs fully priced in another 4+ months of this.

This is interesting, I didn't think he'd be too much at risk of a loss selling a company for half it's price unless the company was going to go into adminstration at least - or bankruptcy...

I think a lot of airlines use interest only loans to buy planes and use their funds to pay off everyone that they get from customers and don't have much of a cash buffer.

I thought people used bitcoin discussion and speculation to discuss the bitcoin price? This is just a general economics section for speculating on other assets and to sugggest a bit of diversification slightly away from Bitcoin.

I can't comment on a lot of htese threads when they're all about bitcoin as I'd generally start to feel as if I were repeating myself and this board seems to get used for both actual economy discussion and the microeconomy of bitcoin.


Yeah they look a lot better here, average about 10% at least (the good ones). This one looks to have been able to hit ~20% over the past few years and I think they're a long standing company so...

I don't know how much money you have but I would go with suggestion made earlier in this thread to invest in real estate. You may invest some portion of your money in crypto but never place all your eggs in a basket. We don't know what crypto will be in 2050 and on retirement everyone needs a solid passive income, so nothing is best then real estate for long term.

Diversification is important in finance no matter what the reason of your investment is. Doesn't matter if its retirement or basically you are in charge of a trillion dollar hedge fund, diversification will always be part of it because if it is not then you are going to lose a ton of money during a bubble burst. Just to give an example of how it should be, let's take 100k dollars into consideration here and see what you can do with 100k.

First take out a mortgage and make a down-payment with 25k of that money to that house and rest get a low rate (right now quite easy because of stimulus) and actually start paying it, then use the other 25k to buy bitcoins and if you ask me just keep it at just bitcoin, with another 25k put it on stocks that pays dividends, of course pick it carefully but always make sure they pay dividends, and lastly with the last 25k put it on valuable stuff like gold for example but I would suggest adding one more to it, oil is quite cheap right now and will probably go up so oil is good for today, you can change it to whatever you want at that moment.

Whatever place you purchased with mortgage, rent that out, of course it will not be a straight income most of the time because renters come in and go, sometimes pays sometimes not, but if you find a person that rents it and always pays on time you are lucky, with the dividends and the rent money coming in, you can actually have a HUGE income by the time your mortgage ends and all of your investment could turn into 200k-300k range in few years this way.

Yep, be weary of anything that fell much, much further than the rest of the market. Buffet selling Delta without waiting for a bounce was a big warning sign too. Travel and tourism is fucked (even with the bailouts) and nobody knows for how long, or what the recovery will look like.

Carnival is another one I wouldn't touch with a 10 foot pole.....

Why is this thread in the Speculation sub-forum?It's not about the Bitcoin price.
I can't give such financial advice,but If I had to choose some option,it might be the retirement fund(due to lack of better opportunities).Usualy I don't trust the retirement funds in my country,but I guess you are living in some western country,where the retirement funds are better managed and more successful.
The bank that I use pays 0.15% interest per year.That's 15 cents for every 100 euro deposited.

Retirement funds are something that is your whole future, it is not just now or tomorrow or 10 years from now (well depends on your age, maybe 10 years from now) but it is your whole future, from a certain age until you die, you don't know when you will die, maybe you will retire at 65 and die at 66 but that will still help your kids, retirement fund has that kind of situation, you can leave it to your kids, so your WHOLE FUTURE, as in your lineage as well.

If you want to risk it with putting it to bitcoin than it is your decision but if I were you, I would do exactly the same what I have been doing to my retirement funds, and on top of that try to save some bitcoin as well, keep it on a hardware wallet with some documents near it all the time or at least in a safe place that shows how people can cash it out if something happens to you before you can cash out.

That way you can have both retirement funds that are safe and secure but not as profitable, but also have bitcoin for your future as well which could be either zero or a million and just a risk all around.

I'd be inclined to put a portion into some sort of retirement funds now and keep an eye open for further moves. We've no idea whether we're building up an appetite to bounce back or just warming up for the true ruin.

As for cash, I don't think we'll see an actual return that beats inflation from a normal savings account ever again, let alone keeps up with it. It definitely has its benefits but they're short term.

Keeping it in cash or invest in for a little investment for me is not a wise idea.
We are here, we are crypto enhusiast so try consider investing it in crypto, in the long run, crypto will certain grow and who knows that will increase in many folds, I understand the risk but you don't have to risk everything,  investing some portion on high risk investment that you are already familiar IMO is good.

If you are going to choose cash, get cold physical cash. 0% interest is basically telling you to fuck off (and buy stocks) and you are hopefully clever enough to not listen to the second part. (Buy stocks)

This is how you kill this system and if you don't do it someone else will and ruin things for you.

Today is a good example of why you should avoid buying any stocks that look cheap. For example DAL (Delta Airlines). Pulling up the weekly chart it looks like a great buy. Back in Jan 2020, it was $60 a share, and it had a low of $19 and currently at $22. So seems like a good way to make at least 3x your money, right? I mean there have to be air planes because people need to fly.

Now today the SPY and DOW30 rallied about 7-8% or so. Its was an amazing day for bulls. And if you look at many stocks, they all rallied about 10-20% or so. However DAL closed at 0.7% loss. Why is that?

Also add the fact that Warren Buffet bought this stock in Feb for $45 and sold it for $24 last week. Why is he selling?

Hence why sometimes you need to becareful because it doesn't always go back up. Remember GM?

Maybe not a regret, but we're talking about our long term portfolios and not next month's dinner. Wouldn't it be better to sell high and buy back low? That extra cash could make for a lot more potatoes during retirement.

2008 was an eye opener for me in this respect. That crash was really painful. I made it a point to hedge for the next one. Still in hedging mode. I would rather buy back into a more reliable bull market (so the risk of another collapse is low) or wait until there is blood in the streets like 2008 so I can buy at bargain basement prices.


Speaking of the housing market.....
Home lenders brace for up to 15 million mortgage defaults

I'm waiting until there is blood in the streets.

It is good that you have a kind motive that wants to invest in crypto currency, but crypto investment is not kind.
Thats why you need to invest an amount you are willing to lose, unless perhaps you are a trained and exceptional trader/investor.

Theres a need to understand this, before investing, and do make sure not to buy signals or sorts.
Always do your own research.

i personally tend to increase my investment in bitcoin as much as i can and sometimes end up not diversifying as much as i would love to. but it will come down to your level of risk taking and how much headache you want to experience since diversification comes with a lot of work.
since we are in a big dip right now and i truly believe in the future of bitcoin and its outperformance in near future i would buy more bitcoin now.

Because it doesn't rise very much and it's hyperinflated. It can see bubbles but there are also problems with divisibility and it being faked to look like it's gold when it isn't. Also, I'd much prefer platinum to gold.


Are gold jewellery items not more expensive than the gold? Does their value keep going up in line with it? I suppose you already have a usable and divisible format but compared to gold bars, their value is pretty limited.

Yeah it is probably quite a debate now. I haven't even gone near my day trading accounts in the past few weeks, I've just left them with what I had.

Mine were saying they were trying to open over the weekend and take on enough call centres to handle the new demand. It's helpful to note that it was also the end of the UK's tax year and may be the end of quite a few other countries (potentially a lot of europe at least).

Yeah, I'm comfortable waiting out another fall just to know that I have some underlying assets. I think I was holding too much cash and crypto yesterday for what I'd reasonably like to be diversified in.


Budget airlines, I can see doing alright here... They have relationships with curriers that might take planes earlier for a reasonable price. A company like EasyJet seems to have a business model of buying new planes, using the earnings from passengers to pay off the interest on loans they get to buy the planes and then sell them on to courriers. There is a bit of a problem with the panic buyers around so there'll still be demand by the courriers on those planes for the time being...

Instead of cash why not gold?

I asked my wife for so many times into where the money should be invested with in case I am done with buying bitcoin and other crypto currencies.
She always says gold.
I ask why? She says it is like an emergency food or wine.
As it grows old its value keeps on soaring high and she never have a single doubt as she talk about it.
So, I buy her gold. Earrings, necklaces and anything but, she never wear it.
She just stash it somewhere in her wardrobe.  

Have you thought about that? It is long term but it could also be a good idea to give to the kids when they grow up and I am near death.  

Retirement funds are something which can give you huge returns because of the great time lapse you have but at the same time they should not be risky as you don't want the last stretch of money with you to be burning to ashes. I would never ever recommend to invest your refinement fund in cryptocurrencies uless you are satoshi nakamoto yourself No matter how big worshipper you are of cryptocurrencies they tend to behave pretty weirdly most of the times. Even we all know that in long term cryptocurrencies are here to stay but frankly speaking no one knows which cryptocurrency will stay. Bitcoin which is number 1 is great until now but only until you don't get a better technology than it. So even Bitcoin isn't safe if you are looking for a very long term.

Coming to the primary part are managed retirement funds safe to invest. Answer is a big yes. Actually they might look ugly at the macro level but pick up some good AAA rated retirement fund and I haven't people complaining about it. But yes make sure you forget to look about it everyday. Because in shorter term you would look at it and say -40% and then you withdraw out your funds. Don't make these mistakes and just forget about it after investing and you would be good.

---

Well said Asset building is what most of people forget about in longer term. Even if the price of the asset drops in the market the asset still has the potential to give you returns. And when it comes to a horizon of 30 years I think it's really worth taking the risk.

No matter what else happens in the world you should always put a few dollars away for a rainy day such as car repairs, house maintenance - even retirement.  Greece went into melt down a couple of years ago because they lowered their very generous retirement funds monthly pay checks which angered many who didn't have a separate fall back position.

I am seeing this question being asked pretty much everywhere on the web, even got some friends calling me and asking "What stocks should I buy".

I noticed that with my stock brokerages I use, they are posting warnings such as "Due to extreme volume your support will take longer than usual" and looking at Google trends for "buy stocks" you will see its at a record high, higher than 2009 bear market.

So I am thinking that since everybody is buying stocks, that they will go down in the near future and you are better off waiting for a better time. If you follow the S&P500 or DOW30, then it should hit yearly support when its about 50% from the ATH, at around 1600 SPX or so. So wait until then... and buy.

Avoid stocks which are too cheap like airlines or cruises, they are cheap for a reason. Most likely will go bankrupt and shares will be worth $0.

I have quite a bit in crypto and I'm not positive on it in the immediate term. I also keep finding random amounts in different places so I'm quite happy with my holdings there and want to start something just in case Bitcoin crashes to zero. I plan to half my hodl position around $100000-$300000 if we get that high, so I need something else to invest those funds in...


I dunno, if you buy a kilo of potatoes and the price drops but you still had food is it really a regret?

You diversify between coal, wheat, platinum, real estate and stocks and the price of them falls, you've still got them. You can still keep yourself warm, sheltered and have something shiny to look at - you could come off much worse.

I panicked in the crash, invested in Morrison's stock with $100 and pulled out $180 somehow, so what's life without some sort of risk... I haven't put everything on RED or ODD, I've balanced it on the world.

---

I need to have a look a pricing up real estate again, I had the basic funds for it a while ago but don't want to start a project unless I have high enough reserves of at least double my original investment as I don't want to take out a mortgage on small income.

0% is a lot better than -30% eh?

My IRA has been 100% cash since mid-2018. I was kicking myself all last year as stocks pushed new highs but it finally paid off. I still haven't bought back into any funds yet, even though I think there's a good chance the bottom is already in. I'm waiting until the recovery becomes more clear, but I also wouldn't blame less risk averse people for dipping their toes back into the market.

Saving cash will not provide any benefit unless it can only be taken at any time you need.
Likewise, if invested in Bitcoin or other Crypto, you must be aware that the investment has a high risk where the price has a high fluctuation, so if you do not have the courage for it do not do it.
Maybe it's good if you invest in something tangible like property or land etc. is the right choice in my opinion even though it does not have a huge profit.

I'm wondering whether to use some of my isa allowance for retirement funds or whether is should just deposit cash (that earns interest).

Vanguard offer a target retirement 2050 which looks to be quite risky at this time but is it worth investing if I don't need the funds now or should I hold off and invest cash? My current bank accounts are making a very strong 0% interest too so...