r/ETFs • u/yunghotmilf • 2d ago

Is this not concerning to you?

Everyday I see someone asking here if they should buy the dip and overwhelmingly the answers are to keep DCA regardless of market, or that they’re lucky to get a discount right now. Asking genuinely, is no one here concerned about the possibility of this ruining the market for many years, especially since the relationships we have around the world have now at the least been damaged for some time? This situation doesn’t seem so easy to come back from

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u/alchemist615 2d ago

I am concerned, from the perspective that the shenanigans may cause a strong recession, which could lead to literally millions losing their jobs and homes.

I am not concerned that the value of the US stock market has reached some sort of permanent plateau. I am prepared for it to take several years to recover prices and will continue purchasing $20k+ a year as I have been for several years now.

The reason you should continue to buy, assuming that you don't need the cash for a minimum of five years, is that you can use times like this accumulate shares. Then, during the next boom, which will happen at some unknown point in the future, all past sins will be forgiven.

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u/Maxoommc 2d ago

Ok, one thing that really! matters is one's age. Me? I am old. What does that mean for me? I already had been in risk reduction. Turning to more cash last couple years with most of my income, like HYS and CDs. And of course, some actual cash. Currently, my at risk portfolio is about 35%. Still getting employer match for 401, so I think of that as growth, even with only half of that fund at risk. I rarely pick a single stock, and when I do it's something that I am at least interested inn (dabble with a few shares at most). Almost everything is ETFs. And again, being old, I do like a dividend ETF, like a JEPI or SCHD, I also like holding some PMs, maybe 5-10%. (not in paper, physical). anyway, my thougfhts have always been, can I lose half of what is at risk and be ok? But, it's only a loss if I sell when it's down, right?

Apologies for the length here, but it's just too easy and makes no sense to just blurt out buy or sell with no reasoning.

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u/Snowbirdy 2d ago

Employer match is a risk-free 50-100% annual return. You aren’t going to get that anywhere else. I wish more people realized this.

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u/Maxoommc 2d ago

And hopefully keeping the tax liability to a minimum when 401 RMD kicks in.

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u/brianswingdancer 1d ago

That’s why I’ve recently started converting my pre-tax deferred 457 to my Roth 457 each year. I’m 59 now. At 75 my RMDs (required minimum distributions) from my 457 will kick in. The RMDs will be considerable ($250K a year and will gradually increase to about $400K a year). That will put me into the 30+ % tax brackets. I’d rather pay the tax now at 22-24% now each year up to the age of 75, and whittle my taxable balance down now, instead of paying such high tax on the high 457 balance from ages 75 to 95. I’m in excellent physical health.

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u/Maxoommc 1d ago

being able to have 457 as an option is great. Does the Roth 457 function the same as a tradional Roth IRA? No RMD?

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u/brianswingdancer 1d ago

Correct. As in the Roth IRA, no RMDs for the Roth 457 either