You are managing your individual retirement accounts. Are you worried
about losing money in your retirement accounts? What could you do to
reduce risk or increase risk if you’re not worried about losing money?
Explain.
There is always a worry about losing money in your retirement acccounts. If look at whats going on in goverment with the topic of Social Security its a subject that shows where you have to continue working so that you dont lose any money in your retirement account. You have to keep working retirement right now is not an option
Thank you for pointing that out William, because I didn't factor in the Social Security sector. That is why I think it is important to make investments into your own retirement.
Well as long as you have worked 40 quarters you will receive Social Security retirement benefits. It does not matter how the 40 quarters are accumulated.
If I am worried about losing money, then I would try to construct a diversified portfolio, through investments, which would reduce the risk associated with the particular asset. The current price of a bond depends on the bond's interest payments and the repayment of the principle, both discounted to the present at the current rate of interest on comparable debt
But if the bond has face value of $1000 that all that you will collect. So if you purchase a bond for 98.7 meaning you purchase for $987 dollars when the bond is time to cash in you have only made $13.00.
Yes, everyone should be worried about losing money in their retirement account when they are investing.
Some things to minimize risk are to buy more securities that way if one of them failed the rest would be fine. To increase your risk, you can keep borrowing until you declare bankruptcy just like the Spain and Greece.
Seeing how the bankruptcy laws have changed and made it easier for people to fix their finances some people might choose to use the increased risk method.
Strange as it sounds, falling prices may work in your favor if you are buying stocks on a regular schedule through your 401(k) or another retirement plan. Each time the market falls, you may be picking up bargains.
if I'm managing my retirement accounts and I'm worried about losing money there the best thing I could do to reduce the risks from losing money is try 401 k accounts where the money can be safe or thinking about a better portfolio plan with low interest rates where the money can be grow
Do you think you would ever try to invest your money in various accounts, instead of just one or two? This way you are reducing your risk of loosing a large amount of money at once and increasing your chances of finding an account that can make you some real money.
It is common for people to worry about losing money when it comes to their retirement because it the money they count on to help them through the rest of their life. A way to reduce risk and make money will be to put money in a fixed IRA. When it comes to the time for the IRA to mature you can withdraw your money to avoid penalties and withdraw fees.
You're right and you also have to remember that putting into a CD will also help a person with having money for the long run of life, within having a CD they request to not be able to have excess to that money until a certain age.
Yes IRA will be good but if you just invest in IRA's its just a fixed income. What if the investors pull IRA's what will be the outcome will you still gain the interest or will you lose. Bonds will be good to because you can invest and wait on them to mature also CD's
I am not worried about losing money in my retired account. Because I have a portfolio and have made investments in different industries. This will reduce my risk of losing money. And investing in more long term debt will also reduce my risk of losing money. For example, If I was investing $100, I would invest in multiple stocks to reduce the risk of losing money. For example, if I have distributed my $100 evenly in four stocks, if one is not doing so well, The other three might be doing great reducing my risk of losing money. Setting up a portfolio with more stock options or different industries is a good way to reduce the risk of losing money.
be aware that information about the economy and the stock market is very accessible now, making it easy to get frazzled. Try not to become overly fixated on financial news, and remain focused on your long-term investing goals.
That's amazing that you're prepared for this process already but don't forget that sometimes the industries you invest in can either make money or lose money and if they lose money hopefully you haven't invested more than you were thinking about investing.
Great assessment, simply because, it would not be wise to put all of your "eggs" in one badger. This has given me get insight as to the investments that I will most certainly make. This class, along with our instructor have given me great advice, in addition to the lesson that is to be learned, concerning investments and portfolios.
How the world is function in this new millennium there is always worries for loss of currency. With the debt that has accrued within American retirement funds are not secure. However, the real estate marketing had been very stable and particular land prices has drop. To secure my retirement funds, I would make investments in the real estate market.
The investment within your IRA carries risk. If you invest in a CD, the risk is minimal and so is the pay-off. If you invest your money in a mutual fund you can incur losses, but you can also earn a large amount of money. It all depends on how much you can and are willing to risk.
Dearrell, that's definitely true because nobody really knows what tomorrow will bring i think is best to keep your options open and find the stable markets to invest your retirement funds
It’s understandable that you might be concerned about losses in your retirement account, especially if you’re relatively new to investing and your savings aren’t substantial. The downturn of 2008 and early 2009 was unsettling even for some seasoned investors. Plus, women tend to be more averse to risk than men.
No one likes to lose money. But serious “loss aversion,” as it’s called, can lead to investing mistakes. To retire comfortably, most people need to remain invested. This means there will be times when your accounts decline in value.
For example, if you invested in the Standard & Poor’s 500 index — the most commonly-used measure of large U.S. stocks — on January 1, 1989, and remained in the market for all of the 5,044 trading days over the next 20 years, you would have earned 8.4% a year on average. If you missed the 20 best days, your return would have dropped to 2.5%. You lost money over the 20-year period if you missed 40 or more of those good days.
I do agree about investments declining in value. When you make long term investments they do change in value because stock rise and fall at any given time. But if you ride the market out and don't take your money out until the end of the 20 years you may make a good profit.
Investing in your retirement is a very important subject that every one should look into . When I think of investments I think of long term stocks that's where I think the most money is made. But I will invest where there is leverage.. I will invest in stocks, bonds, CD's and saving account. So therefore is the market fails I will not lose all my money I have bonds that's at a set interest rates, I will buy more bonds then any other investment because its more stable. Their are less risk in bonds and CD's rather then the market.
Janette i agree because as we are getting older we are need retirement funds to live up to so is best to start planning your retirement now. And find out the best options available to you.
If I was managing my retiring accounts I'll make sure that I invest a certain percentage of the money I make now into to a separate checking and saving accounts that way the money I invest in during my younger years wouldn't affect the money I plan to live with during my older years. I will also invest in common stocks and bonds, I wouldn't invest as much money into stocks as I'll invest in bond, because I will get more return by investing in bonds due to the government regulations.
To reduce risk you should find another lucrative place to put your money. In the retirement accounts its a good idea to have several accounts so that if one account loses you can rely on your other accounts instead.
You're right its always good to way your options within having accounts and investing, sometimes thing might not go the way you wanted them to so you have to have a backup plan, especially if you have children that will be going to College once they're a certain age, that's why now that I'm working I'm going to open a CD for all my kids so they wouldn't have to go through the struggle of paying as much for student loans or education as a whole.
An IRA is a savings account that is an ideal way to sock away cash for your retirement.Investments in the IRA are limited to stocks, bonds, mutual funds and CDs. There are a number of ways to reduce the risk of losing money in these accounts. Important factors to keep in mind are that you cannot always beat the market and risk management is key. Some tried and true methods are owning low cost, broad-based index funds and owning quality credit bonds, bills, and savings bonds. Smart investors spread their investments across various accounts instead of risking losing all their money in one account.
when it comes to risking losing money in your retirement fund, it is a huge problem. one factor in avoiding some risk is a divided portfolio on investments as well as keep working. as one work for social security money grows for your retirement, either keep working to keep building, investment dividends or hide it all under your mattress!!!
I would be worried about the money that I invested in an retirement fund because I worked hard for that money so when I retire I would not want to struggle when I am old
I would say that everyone is and would be worried about losing their money! As mentioned in class, the best way to minimize loss/risk is having many portfolios. So if one stock losses, there are others that may bring in high returns.
There is always a worry about losing money in your retirement acccounts. If look at whats going on in goverment with the topic of Social Security its a subject that shows where you have to continue working so that you dont lose any money in your retirement account. You have to keep working retirement right now is not an option
ReplyDeleteThank you for pointing that out William, because I didn't factor in the Social Security sector. That is why I think it is important to make investments into your own retirement.
DeleteyES, THANK YOU WILLIAM. tHE SOCIAL SECURTY TOPIC WAS A GREAT EXAMPLE!
DeleteGreat Point William, we all most keep working towards that social security
DeleteWell as long as you have worked 40 quarters you will receive Social Security retirement benefits. It does not matter how the 40 quarters are accumulated.
DeleteIf I am worried about losing money, then I would try to construct a diversified portfolio, through investments, which would reduce the risk associated with the particular asset. The current price of a bond depends on the bond's interest payments and the repayment of the principle, both discounted to the present at the current rate of interest on comparable debt
ReplyDeleteThis is also the way I would go about lower my risks. Collecting money on bonds seems to be a low risk enough factor for me.
DeleteI would go with the yield of the shortest- U.S bonds" the risk-free rate of return". The U.S Treasury bonds are considered to be rock- solid.
Deletethis is a great approach, it eliminates the risk we are trying to avoid great answer
DeleteI also agree with that approach of lowering that risk. And collecting money on bonds is an excellent low risk factor.
DeleteBut if the bond has face value of $1000 that all that you will collect. So if you purchase a bond for 98.7 meaning you purchase for $987 dollars when the bond is time to cash in you have only made $13.00.
DeleteI didn't quite finish my thought. You would receive the interest as well.
DeleteYes, everyone should be worried about losing money in their retirement account when they are investing.
ReplyDeleteSome things to minimize risk are to buy more securities that way if one of them failed the rest would be fine. To increase your risk, you can keep borrowing until you declare bankruptcy just like the Spain and Greece.
Seeing how the bankruptcy laws have changed and made it easier for people to fix their finances some people might choose to use the increased risk method.
DeleteStrange as it sounds, falling prices may work in your favor if you are buying stocks on a regular schedule through your 401(k) or another retirement plan. Each time the market falls, you may be picking up bargains.
DeleteGood assessment Renita your comments basically mirror the advice my cousin gave me earlier this week in regards of buying stock.
DeleteThanks everyone for all your insight.
Deleteif I'm managing my retirement accounts and I'm worried about losing money there the best thing I could do to reduce the risks from losing money is try 401 k accounts where the money can be safe or thinking about a better portfolio plan with low interest rates where the money can be grow
ReplyDeleteMarie,
DeleteDo you think you would ever try to invest your money in various accounts, instead of just one or two? This way you are reducing your risk of loosing a large amount of money at once and increasing your chances of finding an account that can make you some real money.
Unlike 401k's, which are accounts provided by your company, the most common types of IRAs are accounts that you open on your own.
DeleteIt is common for people to worry about losing money when it comes to their retirement because it the money they count on to help them through the rest of their life. A way to reduce risk and make money will be to put money in a fixed IRA. When it comes to the time for the IRA to mature you can withdraw your money to avoid penalties and withdraw fees.
ReplyDeleteYou're right and you also have to remember that putting into a CD will also help a person with having money for the long run of life, within having a CD they request to not be able to have excess to that money until a certain age.
DeleteYes IRA will be good but if you just invest in IRA's its just a fixed income. What if the investors pull IRA's what will be the outcome will you still gain the interest or will you lose. Bonds will be good to because you can invest and wait on them to mature also CD's
DeleteI am not worried about losing money in my retired account. Because I have a portfolio and have made investments in different industries. This will reduce my risk of losing money. And investing in more long term debt will also reduce my risk of losing money. For example, If I was investing $100, I would invest in multiple stocks to reduce the risk of losing money. For example, if I have distributed my $100 evenly in four stocks, if one is not doing so well, The other three might be doing great reducing my risk of losing money. Setting up a portfolio with more stock options or different industries is a good way to reduce the risk of losing money.
ReplyDeletebe aware that information about the economy and the stock market is very accessible now, making it easy to get frazzled. Try not to become overly fixated on financial news, and remain focused on your long-term investing goals.
DeleteThat's amazing that you're prepared for this process already but don't forget that sometimes the industries you invest in can either make money or lose money and if they lose money hopefully you haven't invested more than you were thinking about investing.
DeleteI think that is a smart thing to do I never thought of that thank you for the advise
DeleteGreat assessment, simply because, it would not be wise to put all of your "eggs" in one badger. This has given me get insight as to the investments that I will most certainly make. This class, along with our instructor have given me great advice, in addition to the lesson that is to be learned, concerning investments and portfolios.
DeleteHow the world is function in this new millennium there is always worries for loss of currency. With the debt that has accrued within American retirement funds are not secure. However, the real estate marketing had been very stable and particular land prices has drop. To secure my retirement funds, I would make investments in the real estate market.
ReplyDeleteWow I think I should invest in the real estate marketing since it is so stable. That would be a smart move to make. Good answer Dee.
DeleteThe investment within your IRA carries risk. If you invest in a CD, the risk is minimal and so is the pay-off. If you invest your money in a mutual fund you can incur losses, but you can also earn a large amount of money. It all depends on how much you can and are willing to risk.
DeleteYou make a good point in that we should be investing in real estate. But do you think the market is going to crash again?
DeleteDearrell, that's definitely true because nobody really knows what tomorrow will bring i think is best to keep your options open and find the stable markets to invest your retirement funds
DeleteIt’s understandable that you might be concerned about losses in your retirement account, especially if you’re relatively new to investing and your savings aren’t substantial. The downturn of 2008 and early 2009 was unsettling even for some seasoned investors. Plus, women tend to be more averse to risk than men.
ReplyDeleteNo one likes to lose money. But serious “loss aversion,” as it’s called, can lead to investing mistakes. To retire comfortably, most people need to remain invested. This means there will be times when your accounts decline in value.
For example, if you invested in the Standard & Poor’s 500 index — the most commonly-used measure of large U.S. stocks — on January 1, 1989, and remained in the market for all of the 5,044 trading days over the next 20 years, you would have earned 8.4% a year on average. If you missed the 20 best days, your return would have dropped to 2.5%. You lost money over the 20-year period if you missed 40 or more of those good days.
I do agree about investments declining in value. When you make long term investments they do change in value because stock rise and fall at any given time. But if you ride the market out and don't take your money out until the end of the 20 years you may make a good profit.
DeleteInvesting in your retirement is a very important subject that every one should look into . When I think of investments I think of long term stocks that's where I think the most money is made. But I will invest where there is leverage.. I will invest in stocks, bonds, CD's and saving account. So therefore is the market fails I will not lose all my money I have bonds that's at a set interest rates, I will buy more bonds then any other investment because its more stable. Their are less risk in bonds and CD's rather then the market.
ReplyDeleteJanette i agree because as we are getting older we are need retirement funds to live up to so is best to start planning your retirement now. And find out the best options available to you.
DeleteIf I was managing my retiring accounts I'll make sure that I invest a certain percentage of the money I make now into to a separate checking and saving accounts that way the money I invest in during my younger years wouldn't affect the money I plan to live with during my older years. I will also invest in common stocks and bonds, I wouldn't invest as much money into stocks as I'll invest in bond, because I will get more return by investing in bonds due to the government regulations.
ReplyDeleteThat's a good Idea Myron! I would definitely have several retiring accounts so that if one fails I can rely on the other accounts I have.
DeleteAlways god to have that option Barbara
DeleteTo reduce risk you should find another lucrative place to put your money. In the retirement accounts its a good idea to have several accounts so that if one account loses you can rely on your other accounts instead.
ReplyDeleteYou're right its always good to way your options within having accounts and investing, sometimes thing might not go the way you wanted them to so you have to have a backup plan, especially if you have children that will be going to College once they're a certain age, that's why now that I'm working I'm going to open a CD for all my kids so they wouldn't have to go through the struggle of paying as much for student loans or education as a whole.
DeleteAn IRA is a savings account that is an ideal way to sock away cash for your retirement.Investments in the IRA are limited to stocks, bonds, mutual funds and CDs.
ReplyDeleteThere are a number of ways to reduce the risk of losing money in these accounts.
Important factors to keep in mind are that you cannot always beat the market and risk management is key. Some tried and true methods are owning low cost, broad-based index funds and owning quality credit bonds, bills, and savings bonds. Smart investors spread their investments across various accounts instead of risking losing all their money in one account.
when it comes to risking losing money in your retirement fund, it is a huge problem. one factor in avoiding some risk is a divided portfolio on investments as well as keep working. as one work for social security money grows for your retirement, either keep working to keep building, investment dividends or hide it all under your mattress!!!
ReplyDeleteI would be worried about the money that I invested in an retirement fund because I worked hard for that money so when I retire I would not want to struggle when I am old
ReplyDeleteI would say that everyone is and would be worried about losing their money! As mentioned in class, the best way to minimize loss/risk is having many portfolios. So if one stock losses, there are others that may bring in high returns.
ReplyDeleteSo what do you think we should be investing in?
Delete