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Anyway mom now for the last ten minutes of the show today we're actually trying to get serious it's been tough on -- can think of it.
Think -- G-20 protests we're gonna time now.
We're gonna talk about retirement and financial planning with specials in an area -- Buckner who has weekly column on foxbusiness.com.
Which is great to have -- foxbusiness.com -- grandson -- I -- to see you so you know I think this is a good topic for me it's no secret topic but it needs a good time for our viewers because.
You know people write -- with these types of questions all the time and and wanna know and is one of the real serious issues right that's come out of this financial crisis.
Is retirement and what people are gonna do people do you -- people -- real scared a lot of people are.
Just literally self lately because if if you retired in 2008.
And saw your portfolio your -- day decimated.
You know in your question is what I do -- -- -- back to work like you take I can't take out as much as I thought I could sell how to -- make up that income.
Do I reduce my standard of living you know what I do going forward with my -- and Alec -- It's really affect the labor market that you think a lot of -- and -- -- the baby -- staying in the workplace and there until -- that's another big issue with us today and then people coming out of school and how they often intuitive and what a dynamic it is because people wanna stay and work longer -- -- feel -- they have.
What you know -- So working longer and the fact there was a study done that showed if you can just work two years longer can do tremendous things in terms.
You're hearing from their retirement it's two more years that you're not taking money out of your portfolio of -- -- reducing that.
It's truly -- for your portfolio of us to grow.
It's -- you should probably have health insurance that is -- -- employers opposed to something that's coming out of your pocket so you know.
Say if if the worst alternative is to work a couple years longer you know that may not be such a bad thing.
Look at these economic times definitely make us no matter what ever your age is kind of freak out about your finances and how to act how to plan accordingly -- -- and it's hard because really it depends on your personal circumstance you own homes and not.
That -- all you are older you want to have children at eight.
And taking aside is there one thing that stands out to you kind of -- as you're watching his Martin's he'd been involved in the market for a long time that just is that repeated mistake that people make.
In that white yes of.
I think the biggest mistake people make is to panic if you're talking about and then go to cash.
You know and things like putting everything your savings -- -- savings account or treasury bills were CDs.
Because what happens is you've got to have growth -- -- -- retired and we're going to be retired for about thirty years probably so.
-- inflation's going to be an issue used to -- growth in your retirement assets.
-- yours your age and setting aside money for retirement you definitely need that that mistake to -- you can't afford to be out of the stock market.
Added fortunately like to work with a colleague who said -- rings -- bell on Wall Street when the market's gonna recover stocks tend to move in short unpredictable -- And if you're not in the market at that time you miss those gains no matter what rights if you're on the sidelines that's a mistake.
Earlier it's a challenge that is some people feel like that's a sales pitch from Wall Street to some extent now right there mindset -- change this thing.
Although it would look you know buy and hold strategy for example now that a lot of people say well listen that's gotten me killed over the last decade I bought -- hold and I held and it went down and I'm in trouble and you know the fact that -- -- -- let's just stay in the market.
You know what you get to be a little smarter and when you get in and when you get out what do you make of that.
That there -- some of you probably was still in high school colonel at the time but I remember where.
About fifteen years ago there were some very Smart people on Wall Street who got paid big -- -- you're not.
They've figured out that that you know the formula that could tell you what would be the time to get in and get out.
And you got to hear those names today.
The market is smarter than any individual or any formula.
You're still believe that's the question is yeah a 100% of your money in stocks but what people you know don't look at is.
For example if you -- if your concern about the in the stock market then look at dividend paying stocks because they're pay dividends sort of to to wait.
Why all the -- until the market recovers.
If you just look at -- stock prices have been over the ten years now maybe you you haven't come out ahead but if you look at the -- that maybe dividend stocks page you.
-- over that time and if you reinvested that and certainly have more shares today.
In those mutual fund say then you did back in 2000 and when it comes to paying dividends and interest and capital gains.
But people don't understand is mutual funds pay you.
Based on how many shares you own and not what the value of your -- and who else.
So the idea real quick on the eighty what you brought -- going into cash and as it's a bad idea -- sometimes for people to.
To have less invest in the stock market and and put too much cash what -- during a financial crisis where you're really really unsure can't you see that argument.
That somebody wanted to -- -- back in the fall -- last -- said you know what I have no idea what's gonna happen here for the next year let me just have some cash on this and at least its cash.
I have no problem with having some cash I have a problem going a 100% to -- that you miss the opportunities.
The Phillies from one sabathia and did you -- some of our viewers -- weighing in now about.
Just how tragic it is for this this generation of people that are near retirement age at -- age -- in retirement.
A -- from Nebraska saying you know this this whole recession should never happen -- -- do happen I think I I think we get lulled into complacency you think that.
Markets fill -- the Lott presided can't have argued that the difference that this line is that it keeps and saying this is -- time we've never seen before this is an consequences we've never seen before this is and you know unlike anything but the Great Depression so it seems like all -- lost.
If you wanted -- the Great Depression still but if you want retirement age -- in net.
It -- everything must be blocked happy your portfolio of rain and he had he even go about rebuilding some of that well what.
The first thing that I would tell bottom Nebraska is don't go all the cash.
Look at your portfolio in terms of the number of shares fuel and fuel mutual funds hopefully you reinvesting -- buying more shares and accumulating faster.
-- market does eventually recover and I can't tell you when that's gonna happen.
Having more shares of whether it's a mutual funds or individual stocks it -- mean that your portfolio gets an extra boost when the market does recover.
And if you haven't started Social Security yet because you know that the longer you wait to start Social Security.
The higher your benefit is well.
-- -- market like this I would start Social Security today because that's another maybe a couple of thousand dollars a month you don't have to pull from your portfolio.
You can read those after -- in there to recover when the market does eventually recover.
Parts -- what about changes that have been made now recently that people that is what what should people know about in terms what's going on the diaries for example.
And and different kinds of regulatory changes that are taking place that people you know may not -- paid attention to it and commit to change based on that.
If you have to take what -- -- required minimum distribution which means you're required as either an IRA owner or 401K owner.
Or the beneficiary of one of -- retirement accounts to take a minimum amount every year.
You get to skipped this year and that's something congress passed very late in December.
It kind of flew under the radar because -- right around the holidays.
And a lot of people don't know that they don't have to take that -- -- this year the whole purpose is to give people an opportunity -- congress to sink in this way.
Need that money invested so that when the money when the markets recover.
You know your portfolio have you know more shares and -- greater ability to recuperate some of those losses so you don't have to take a required minimum.
Distributions this year.
Is still it.
I'm looking at Kennedy for these questions about stocks when -- and being about preferred slacks -- you know how you look at.
I've seen -- saying and what about preferred and stocks -- how do you make it.
And the difference between two you're not really -- with the stock market because I think the mentality -- -- just paint your 401K and then you don't really know what what funds those are well.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- OK so that you find out what finds that when you looking for any do you see any said he -- -- any information that part it.
Analyze information now looking at his wedding but my biggest -- -- the one thing I'm looking for -- and blogging I think looking -- -- what happens I would look for is and most 40 okay planted they've got some sort of computer link you can.
Go back and look at that.
Track record of how those funds have performed.
And hopefully you've got a ten year or longer chart track record look to sit.
How they've done may -- in 2000 through 2002 had checked the track record to be sure that you know -- those managers have not performed in the good years but in the tough here's why.
What about allocation at this point in some people are and ask you a little bit about that in terms of and I know that this is different and -- on how old you -- everything else but allocation changes that you would be making you for some investors an interest in moving for stocks to bonds different asset classes.
Well there are -- If if you're uncertain about what your asset allocation should be a lot of -- not mutual funds are start 401K plans to.
403 B plan -- today defined contribution plans in general.
Have what are called target retirement funds -- target date funds.
And these funds are managed on your behalf.
Face on your -- -- you don't even at that concept still makes completes that nothing's changed over that take a lot of risk if you're younger.
-- take risk off the table with your older anti -- off the table means moved from stocks to bonds -- -- -- commodities fit in how to some of these other you know more creative investment.
Asset classes that have come up out of a fitted.
Should you be you going to alternative investments are just completely forgot about that what.
If you can't even decide among the mutual funds and 40 OK don't going to hedge funds right.
Stay away from alternative investment and why not -- the mutual funds that.
Your 401K -- you what you've got people who are very -- I invest in mutual fund I am not sitting in front of a computer all day I'm not an analyst.
I don't -- visit companies and see thousands of a CEO of the year and -- about the companies I invest in mutual funds because.
I want somebody else's you know skilled and experienced in that area to do that look.
And that's that is what mutual Martinsville and unlike hedge funds mutual funds are required by law to have much more disclosing -- kind of one of Bernie Madoff in the mutual -- Now and it indicated that he take away a mutual funds right for years and in the news you know an old school compared to the head.
We should try it yeah.
Pay into its money right in this fees for the hedge funds that the work that -- us so we can real retail but of course the (%expletive) this is -- -- -- -- came on.
The show here folks this is dot com haven't spoke just mindless they're considering the column from her -- right out at and that -- -- -- thank you very much and we think -- -- -- for a to you today because yeah what that was kind of a different show than we normally do you write the patent act -- serious starting -- -- Have a great day everybody we'll see you back here tomorrow -- the system come.
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