10-14-2018, 06:36 PM
Good post rayray.
I am a GOV retiree and saw so many do exactly what you described. Take a six month beating in their 401K, then when it was too late move oll their money onto short term treasuries so they could feel "safe". Two years later they listen to their friends bragging they made $100K, then they want to move back into stocks. In one particular case an older friend invested in T-Bills for 20 years, then moved it into 100% S&P around 2007. Lost all his money, moved it back and was forced to retired with not much due to his age. It was hard to watch and I spent considerable time trying to get them on a better path. Sat them down one by one (voluntarily), projected out their personal balance in 30 years at various rates of return from 2% to 10%. Some listened, started contributing properly and allocating it correctly. Told them they couldn't cash out scared without calling me, even after I retire. (complete BS of course lol) It's a good feeling when I talk to them about 10 years later. Probably the most important thing I ever did for them in all my years of supervising. Somebody did something similar for me when I was very young.
I am a GOV retiree and saw so many do exactly what you described. Take a six month beating in their 401K, then when it was too late move oll their money onto short term treasuries so they could feel "safe". Two years later they listen to their friends bragging they made $100K, then they want to move back into stocks. In one particular case an older friend invested in T-Bills for 20 years, then moved it into 100% S&P around 2007. Lost all his money, moved it back and was forced to retired with not much due to his age. It was hard to watch and I spent considerable time trying to get them on a better path. Sat them down one by one (voluntarily), projected out their personal balance in 30 years at various rates of return from 2% to 10%. Some listened, started contributing properly and allocating it correctly. Told them they couldn't cash out scared without calling me, even after I retire. (complete BS of course lol) It's a good feeling when I talk to them about 10 years later. Probably the most important thing I ever did for them in all my years of supervising. Somebody did something similar for me when I was very young.