Investment question

[HuntInWild88]

Last year I sold my house and made a rather large profit and asked a family member who is wealthy who they invested with. I went with their recommendations and I'm currently down 20%.
I know it's not been a great economic year but just out of curiosity is this normaly for this year?
If not how do you switch? Do you switch companies?

 

[Roosterstraw]

That is on par with most investment companies. I’m sure they reeled you in by saying “the last 4-5 years have been extremely good”. I almost done the same thing but I was worried about inflation and stagflation but was told not to worry about it. I was worried about it though and decided not to invest at the time. This was by a Dave Ramsey recommended firm too. Unfortunately most retirement accounts and investment accounts are down around 20% unless you hedged on oil.

 

[Whisky]

I think I"m around 23% down for the calendar year, and another guy I know is around 26%.

 

[260madman]

Consider 20% down as good. I lost almost 30. You can switch to a more moderate strategy and possibly have no growth or lose less than an aggressive strategy. I switched mine to a moderate until after the first of the year to see how things will go. I didn’t want my daughter’s account to drop back to what it was 5 years ago.

 

[microtus]

I was down just short of 25% but it has started climbing back up in the last couple of weeks. As long as you don't liquidate any shares of what you own, you haven't locked in any loss. It's all about the number of shares, ride it out.

 

[yeti14]

You're only really down 20% if you pull your money out. Stay the course and ride it out.

 

[HuntInWild88]

Hey thanks for the reassurance guys.
I didn't want to pull it because like yall said then it's a locked in lose. Just wasn't sure if my money was being mismanaged. I have my annual next week and just wasn't sure what directions to go.

 

[microtus]

Switching to a different strategy will result in selling of shares in specific funds to re-allocate that money to different shares. Guaranteeing the current price per share for what you sell. If you don't need the funds within the next year, let them sit. Buy high and sell low is a trap that many fall into. Even with share prices down, they still pay dividends which purchase more shares. In essence, buying shares when the price is down. If I had extra money to throw at the market right now I would.

 

[Bubblehide]

I bonds were at 9% and at that time considered one of the best investments at the time. They are currently just under 7% and still considered a very good investment.

 

[Johnny Tyndall]

Just about everything's down. Anyone who's up took a gamble on something that paid off (which doesn't necessarily make it a good idea). So nothing unusual or worrisome about being down 20% for the year. That said, it doesn't mean you got good advice. Hard to know without more info, and even then everyone has their own opinion.

 

[Roosterstraw]

Also, whatever you’re down add 7-8% to it for inflation. Not a good year for most of us.

 

[def90]

Last year I sold my house and made a rather large profit and asked a family member who is wealthy who they invested with. I went with their recommendations and I'm currently down 20%.
I know it's not been a great economic year but just out of curiosity is this normaly for this year?
If not how do you switch? Do you switch companies?

I'm down a lot worse than that for the past year or so.. Thanks Biden!

The NASDAQ is down 29% for the year so keep that in mind.

Anyway, if this is a retirement fund or you don't need it right now don't touch it, you haven't lost anything until you cash out. Don't get caught up in watching it every day, it will drive you nuts. Keep an eye on it and compare it to the various indexes every few months or so and keep in mind that this is a long game.

 

[YellCoAR]

I pulled all my money out of mutual funds at the high point after Biden election. I let it set in money market for about a year and a half. I just so happened to rebuy into mutual funds on the lowest close of the year. I am watching and will repeat again as I fell certain we will see a slow climb followed by another big drop.

 

[2531usmc]

I pulled all my money out of mutual funds at the high point after Biden election. I let it set in money market for about a year and a half. I just so happened to rebuy into mutual funds on the lowest close of the year. I am watching and will repeat again as I fell certain we will see a slow climb followed by another big drop.

That’s kinda what I’m thinking also. I suspect the S&P will come down 50% from its all time high and that’s when I’ll stick my toe back in the water

 

[eddielasvegas]

The HUGE gains in the major indices today should go a long way towards reversing slides this year.

I'm not a believer just yet but maybe the nadir is in our rearview mirror.


Eddie

 

[bozeman]

Stay put. It always rebounds.

 

[Crowmangler]

No risk it, no biscuit

 

[5MilesBack]

Stay put. It always rebounds.

Sure, but it took 17 years for the major averages to recover from 2000-2001 declines.

You don't have to change companies, but you "may" want to change actual investments.

 

[Wyobow1]

All depends on what your intentions were for that equity you cashed in on. If you are/were planning on using that money short term 1-5 years, it would have been better to keep it in cash or I bonds ($10,000 max.) Or even maybe a bond. Even savings accounts are paying around 3 percent nowadays. If your intentions were long term (hopefully they were) leave the money alone and dollar cost average purchases from now until you plan on using the money. The market is on sale good time to buy. But remember to spread out your purchased so as to lower you risk profile.

 

[txtransplant]

Zoom out. Investing is a long term process. You should absolutely expect volatility in the short term. This is totally normal. Don’t try to time the market. The worst thing you can do is sell and go to cash after your portfolio has taken a big hit.



If you’re looking for advisors, I strongly recommend a fee-only fiduciary listed on XY Planning Network and/or Fee-Only Network.

Additional recommended reading:

What if You Only Invested at Market Peaks? - A Wealth of Common Sense

What happens when you only invest at the peaks of the market by being the world's worst market timer.

awealthofcommonsense.com

Why you may miss the market’s best days if you sell amid high volatility

Research shows that big market drops tend to precede large gains. If you panic-sell when stocks are down, you may miss the upside.

www.cnbc.com