Trying To Resist Jumping Ship

July2022
July2022   |     |   10 posts since 2018

For most of my working career I have been in IRA CD's , mostly because of NAFTA. In this area companies open and close to only go to Mexico, Malaysia etc etc within 5 years; so I eventually rolled My 401k's over into a IRA CD.

However with the crappy rate of 3.5% at best, it looks like the market and policy makers are creating a vortex to suck more people in and that worries me...so many people are in the market who would otherwise not be there because of the rate of returns elsewhere....the economy has become more linear and not diverse enough to go from a small recession to a major one again....too many people are in the market who would otherwise not want to be there!

It feels like the last few Administrations have propping up this economy with low interest rates and when this bubble pops, there will go the last remaining wealth of the American middle class that wasnt gobbled up in the 2007 bubble....spiraling into the abyss.

I dont like the market, I dont trust the market but a dividened income stream from a utility company would be a lot better than 3.5 percent...I guess my interest "breaking point" is 4 %...anything less than 4% will turn me into a lemming too; ready to go off the cliff with the rest if my CD IRA rate drops below 4 %




EarthVisitor007
EarthVisitor007   |     |   50 posts since 2019
I am resisting it. I will probably explore part time or seasonal work before I have to change my mind.
Ratesaver
Ratesaver   |     |   46 posts since 2013
I feel your pain however resist it especially if you are retired or retiring soon... I have one IRA cd at 3.00% and hope to do better soon
CDStalker
CDStalker   |     |   2 posts since 2019
You nailed it. I feel exactly the same. I’m staying course though...I’ve held out too long. My past small forays into the market have been disastrous, tiring, worrying and added stress upon me inconceivable. I just feel any day could be it...everything so propped up and phony. All the arrows are pointing in generally the same direction. There will be a giant cataclysmic crash....sometime...maybe soon, I don’t want to voluntarily expose myself to that damage, though we’ll all take a beating regardless. Maybe I’ll buy gold...I dunno.
Ally6770
Ally6770   |     |   2,792 posts since 2010
This may not be for everyone but have been in CD's since the late 70's except for a short time in the late 90's when you couldn't do anything wrong. Balance sheets had not changed during that time but stocks kept rising. I was a nervous wreck when in the market. I got out in late 99 and never went back. Bought 8-9 and 10% CD's as far out as I could in 99 and never looked back. Ladder all your CD's and lay back and enjoy it. Add to the CD's when they mature if you can. Take some out if an emergency appears. I have been lucky and never had to take any out. No worries. I still go for the highest rates no matter how long. Leave the interest in your CD's so that the CD's compound. I still have 10 year CD's that won't mature until 2021. You will get the best rates most times when you ladder and miss few. So far it has worked out and though I have been retired for 11 years and was the sole worker for our family since 1995 when my husband was put on 100% disability, CD's were and are the right thing for our family.
Kaight
Kaight   |     |   351 posts since 2011
When it comes to the stock market you must take into account there is an election one year hence. Trump is one of the POTUS candidates and he is truly hated, he is loathed, by a great many powerful people in government. An important element underpinning Trump's reelection chances today is a strong stock market. Just think for a moment of the benefit to Trump's opponents if that stock market strength evaporated. What a great thing for their side!! And clearly Trump's opponents will stop at nothing to bring about his downfall, so great is the hatred.

I'm not currently in stocks. If I were, I'd feel as if I were looking up at a guillotine blade which could descend rapidly, at any moment between now and a year from now, and take me out. I acknowledge Trump is resisting by jawboning the Fed for lower interest rates. But I'm just not willing to put my money on the line with a bet on his success. Better to remain on the sidelines for a year and wait until the smoke clears. Regardless who wins the election, one year from now this threat to the stock market will be gone.
Ally6770
Ally6770   |     |   2,792 posts since 2010
Trump was not president during the other times the market fell. There was no reason except momentum buying when the market was going up so much. I am a logical person and would buy according to the balance sheets and the prospective on what a company was planning. Cannot take the momentum buying and panic selling. I will say in CD's.
Ally6770
Ally6770   |     |   2,792 posts since 2010
Stay in CD's. Sorry!!! Was running late to get the grandkids.
You are fighting algorithms now. Trying to beat the computers to try to buy or sell. No thanks. Being in stocks is not for the little guy. Go with the big companies. A person cannot compete. 


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