It worked for me. I saw that in March the stock market was very very bad so I went all in.(to be perfectly honest I went all in in May, I wish I did so in March, but all's well) If you look at VTI now by the way(US total market index fund) you would see that even if you bought at the worst possible time, the peak price before the corona crisis, you would still be up today. So doing absolutely nothing was also a good choice for her.
@@noldi123 another market correction is bound to happen, especially with no stimulus. The Dow is almost at 30,000, which is a complete overreaction by the market. If you sold now it would probably be a good move.
@@noldi123 The hardest thing in the world: absolutely nothing. I cannot sell without triggering taxes(which is a definite loss) also, with all the stimulus thrown around and that will be thrown in the future even if a market correction happens, it is bound to rebound. Honestly I am not a market timer, I had began investing in 2019 and reading all those books. I was working up the courage to go all in since 2019, and when the corona crisis happened I thought to myself "this is it, you're half in, if there was ever a time to go all in this is it, otherwise then you don't believe in investing or the long term and you shouldn't be doing this at all" and this is the story of how I became all in. If you think about it rationally: the US dollar is not safer than the US stock market. If the US dollar has any value at all it is because there is an economy behind it, there are products being manufactured and sold and services that are manufactured and sold. There is NO SCENARIO where the US economy collapses but cash remains a safe haven. So selling out to cash is kind of useless... If the economy is at risk I would rather be the one that owns the rental buildings people want to live in and struggle to afford, and I would rather be the bank that lends people money for a fee. I do not want to be the holder of paper money that continuously gets printed.
It's kinda easy to become a millionaire at 50 if you save money, if you put 1000 aside every month for 20 years that's 240 thousand plus interest yield from those 20 years. And if you have your house paid off thats half million right there
Generation Wealth and Real estate. If you can afford to buy a house and leave it to your kids, you end up with a lot of people who end up with a good amount of money of money but very little common sense. But as they say a fool and his money are soon parted.
Who knows they could be very wise outside of their financials. Clearly they had a good plan until disaster struck and they’re going to be wealthy still
Humans beings at their core are emotional creatures. Most mistakes you make in your life will be due to one of the following: greed, lust, fear or vanity. Or at least that's what I have gathered from my observations, almost everyone succumbs to one or several of them, no matter how smart or educated they are.
I had a Financial Services Mutual Fund in 2007, I cashed it out, But in case I was wrong, I left $2k in it. The Fund hit its stop loss point and closed They sent me a check for $600. Remember you can be pushed OFF, READ your Fund agreement. Imagine $200K and they sent you a check for $60K.
Actually, this isn’t true. One example is on September 7th 1997 four passengers on the American Eagle racing coaster at Six Flags Great America were injured in a low-speed collision on the brake run. The train coupler failed between the second and third cars, allowing the train to separate and cars to bump together. This occurred while they were all seated on the coaster.
Haha you mean the education system run by these millionaires and billionaires would put actual education on investing so that they cannot profit off the massive panic selling of retail? Hahaha 😂
In March my account went to the all time lows of just over 9000 dollars, I didnt sell and instead when it was that low I invested about 7000 more dollars and now my account is sitting at about $41,000. Best financial decision I have ever made. Never panic sell, instead get GREEDY when everyone is in fear. Ressesions are the BEST time for massive growth in a span of months. I cant wait till the next recession so I can be a millionaire soon 👍
Ouch! Great coaching through this painful mistake! Getting better informed and understanding their financial options will not only garner them the wisdom needed to avoid future catastrophes, but give them much needed PEACE going forward!
Yes but you don’t realize its the bottom at that moment, only in hindsight. To them (and many others that try to time the market) it was a good time to avoid further losses. It is only after it bounces that they realized it was a mistake.
@@TheKeyTakeaway It's not "only in hindsight" because knowledgeable investors know that bottoms are always temporary. The market always bounces back. The caller and her husband are huge fools. There is roughly a 90% chance that the market will be higher than it was just five years ago. Instead of selling low and buying lower, they should have had some cash set aside to buy the dip.
@@jaketyler7088 hello, yes we agree that it was lower, but to say “the bottom” implies that you know beforehand that it is the valley and will go up right away. Ultimately never sell.
Based on their age it can’t be their first bear market, doesn’t make sense. Tough lesson but hopefully everybody understands. On the long term, markets will go up. If you make financially emotional decisions, don’t manage your own assets.
The Key Takeaway, I agree. I think the folks just panicked. When people panic they do weird things, things they'd not do otherwise. They may have been thinking, too, about their age. Their parents died and they're thinking we're getting "up there", oh no, the economy is affect by the pandemic, etc., etc. Good to have someone to talk to, like they said.
Early fifties is right after peak earning years. Could be that the poor fella didn’t own as much assets in ‘08/‘09 as he did in ‘20 and he probably didn’t lost his parents twice.
These people are insane. Selling out when the market is down?? The only people who get hurt during the rollercoaster are those who jump off in the middle. And they want to buy bonds now for the next decade or so?? What?? They don't understand the magnitude of some of these decisions that they're making, and they're making them based on ill-founded emotion. Don't invest in something you don't understand, and they clearly don't understand it at all.
Seems like they just saved overtime and thus ammased all of this money in there old age without even learning basic investments 1.2m would be enough to retire on dividends and get a income of $36,000 if only at 3% AR. I wish I had $1.2m /£1million I would be set for life on the dividents and could just work part time. They fkd up when is that amount of money they should have sought some professional input literally they just cashed out there money pointlessly and are now liable for tax probably to the level beyond any market downturn they had. If they needed cash could have just cashed out 200k and made sure to trim there portfolio to trim weak companies and left one million in stocks and just wait .
@@jamesk8891 they are not liable for anything tax wise. It was all I their 401k retirement. They just sold the stock and put it into a money market account in their 401k.
One of my very educated very intelligent coworkers panicked back in the financial melt down over a decade ago. He moved everything in his 401k to cash from stocks at the bottom when things plummeted in March/April time frame. I begged him not to. In sharp contrast my husband came home and said we have to double down. I would have just left everything as it was dollar cost average in etc. nope. Hubby has nerves of steel. We front loaded our 401k and only left the amount for matching. We went without paychecks that month no the next. It was tight. We bought in at the bottom and let it ride. That panic move ended up costing him years of extra work before he can retire. Following hubby’s buy low double down strategy shaved a couple years at least off our timeline. My coworker bought back in after the market recovered the next year. Lost 20%.
I remember my first foree into a dumb sale. My account ended up being 2% less than it should’ve been if I just held serve. So for perspective, say if I had held serve and had $100k, then invested $10k a year at 10%, after 30 years thats $3.39m. But if I start with $98k, I finish with $3.355m. That’s $35,000 at retirement, gone.
@@hornetguy9063 even worse is that people who panic do it more than once. If it was just one time when young then 🤷♀️ not such a big deal. This guy was in his mid 40s. He had 600k originally and moved it at about 300k. So he lost 300k with that one bad choice that’s would have grown in 20 years to well over a million.
Truly sorry for his loss. What is it about people not being prepared for their parents to depart. God sakes these are in midlife age themselves.. Parents have got to talk to their teens about cycle of life and prepare them for the event
I know someone who would have been able to retire with about 1-2 million, but they pulled all their money out in 2008, due to the crash plus several other tragic or emotional events. Don't underestimate the power of emotional decisions.
Dave every time I hear you say, “it doesn’t matter who is in office...” I agree wholeheartedly! I have made money during the good and bad because half of America bails out of the market depending on who is in office.
hah, im glad im not the only one who notices that. i always have to turn my volume way down so i dont blow my ear drums, then turn it up when the talking starts... i hate loud intros, its so pointless
They lost a BIG chunk of money with that stupid move. But they have almost a million dollars sitting in their 401K in cash lol. Life’s not over. Get that money back in the market. You’re still millionaires lol.
@ihategooglespooks it’s crazy because you can tell they don’t want to put it back in the market. She’s talking about buying real estate with it which would chop the money in half. She mentioned bonds lol. Like she still doesn’t realize they shouldn’t have touched the money. Her husband probably watches conspiracy videos on TH-cam or something.
Is it any surprise in Trump's America? I can completely understand why this couple did this, and they weren't sure if America would recover at all while that man was in office. Hopefully they will be able to recover from this.
Sadly, people selling at the bottom is one reason my investments have done so well. Don't sell at the bottom! Instead, set up your accounts in a balanced method with investments in classes which tend to go in opposite directions during periods of volatility, example bonds and stocks balanced fund. That way, when one class drops, you will be selling the one that's rising or holding its value to buy the one that's dropping. This makes you buy at the bottom and sell at the top.
It’s very funny that everything revolves around money but no one teaches the other how to make money. Check this out : We go to school in in order to get a degree and come back and start working in any organization in order to make money. Now my problem is why don’t they teach people about money In school? Please I advice everyone reading this to start investing if you haven’t and those that are investors should invest more, you can’t be a millionaire with your pay check.
I think this pandemic has taught people the importance of multiple streams of income unfortunately having a job doesn’t mean security rather having different investments is the real deal...
It was an emotional decision. Losing your parents is a very emotional moment. You're not thinking clearly when it happens. How does that not make sense?
don't know why people do that with their retirement accounts when they still have 20+ years to go. it's not like it's a regular investment account gambling on individual stocks. at least they hadn't cashed out.
Why!!!! I quadrupled my deposits into my retirement accounts and opened a taxable brokerage in March. You had to have seen it couldn't go down forever.
sold the bottom... sat in cash as it rallyied so missede the gains. this is a HUGE loss for them. took an L annd missed the gains wow. i wennt innto the crash with 55k. came out with 300k. thank god i held it down and wasnt too scared. " first crash i was in". very scary as the pnademic news AND financial markets were crashing at the same time. great learning experience.
$900K went to cash inside the 401k, $350K still in the market. Early 50's? Ouch. At least they still have $1.25M in retirement when they could have had $1.6M. They won't "recover" the trajectory they were on. That $300K "oopsie" will cost them ~$1M+ by retirement (10% CAGR for 13 years), so they will forgo ~$40K+ a year of income in retirement. The $1.25M they still have will probably grow to $4M though and give them $160K a year (4% rule here). Not the worst thing in the world when your retirement takes a hit and you only get $160K a year instead of $200K and Social Security wont be any different either way. A good lesson for all though.
Yikes I only had a little invested when the stock market crashed. I took a huge chunk of the money I had invested out of my savings and just bought in such great deals. Happy I found Tesla stock when it was so cheap.
Help me out guys..I have 36k 18% interest rate (i was dumb all i was thinking of was less money paying monthly for consolidation)debt ends in 2024. Option 1: i can pay it off in 2 yrs by increasing the monthly and using the cash security. However my emergency fund will be really low. Option 2: purchase land (6 % interest rate for 15yrs which will be refinance in a few year to build) and consolidate the 36k into it. Monthly payment would stay the same as the 36k.for the most maybe $100 more. PS I'm from the Caribbean so buying land to build on normally how it is..we don't really do ready build houses. What should I do
50 seconds in and I already feel for them..... I started investing on my own using Robinhood in February. I unfortunately didn't know what I was doing and just invested in dividend stocks for a few months. Fast forward to December and my account is up 30% with a healthy amount of growth and solid dividend stocks alike. (Transferred to Fidelity as well... I have learned so much this year!)
This is getting discussing. If the guy would have taken his money out and the market would have melted down, the guy would have been a genius. Nobody knows the future. How about when Dave told the couple to sell their silver just before it doubled. How much did Dave lose for them?
No penalty on early 401k withdrawals until end of 2020 (just need an excuse/reason related to CV). Still, it’s a terrible idea to be avoided at all costs.
Ugh, lows in the stock market are buying opportunities, not time to be scared. The only time I have ever taken money out of an index fund was to buy a rental property other than that I just put money in every year. Never pull money out based on emotion, when the market is down put more money in.
Since the caller understands realestate think about it this way. Would you sell a house for a 30% discount just because your local realestate market declined in value? Usually the answer is no. you would likely rent the house out to cover your expenses and wait for the price to bounce back. When you own good Mutual funds and ETF's you own the biggest best companies in America. For example if you buy a fund like VOO you are buying stock in 500 companies all at once. These companies include Apple, McDonald's, Coke, Walmart, Amazon, Starbucks, Google and many more. Just like a normal small buisness the value of these companies rises as they become more profitable. Even if say one of the companies in the fund goes bankrubt and you lose your whole investment you still have 499 more to ofsett you loss. When thinking about it this way its easy to see why generally speaking in the long run americas biggest companies continue to become more profitable and thus the stock value of there companies rise and on average the fund you have all your money in increases in value.
why cant they roll the 401k into a self directed and buy a rental property if they like to, there are alot of regs to follow, but it can be done without paying a penalty and pay taxes on it
That's why you should not play investor if you have no clue how it works. When the market goes down fast, it usually comes back to the point where it was before the dip in about a month.
Everyone should stop being so mean and bragging about how much money y'all made in the dip, cause honestly you just got lucky. I bet for every person bragging on here, theres 2 more hiding in the shadows cause they made the same mistake. there wouldn't have been a way for them to know the market would come bouncing back, for all we knew, the markets could've gone down and kept going down, and we'd be worse off than ever right now. It is understandable why they panic sold, in their mind, the stock market was going down every day, and they'd rather cash out the 1 million in case it turned into 500k by the end of the year. They're approaching retirement age, and can't afford to be as aggressive. The only mistake they made was not DCAing their money back into the market when it showed signs of a rebound. Lucky for them, they have so much money that they will still be okay.
Having large stock piles of cash is dangerous. Cash is only worth what people are willing to trade for it. In plain English between inflation, politics, etc. paper currency can go way down at the drop of a hat. Beyond some emergency fund (3-6 months worth) you shouldn't have any liquid cash. You're losing money everyday if you do. Put your money into things of REAL value. Real-estate has REAL value. It's cash value may go up and down but it's that REAL value that make real-estate valuable. Mutual funds is another REAL value investment.
If she's able to roll it to an ira she could potentially convert the holdings to real estate, but she would need to engage some expertise to make sure they don't incur penalties as a result of the timing and other details.
TheLivedeath I’d love to see the Biden administration attempt this as a first go around. Not only does it not pass constitutional muster to impose a nationwide lockdown, but it seems like both Pfizer and Moderna will have vaccines in production. “15 days to slow the spread”, right guys?
If their employer allows it, or they leave their job, they can rollover part or all of their 401k into a IRA. If they are confident in their real investing skills, a “self-directed” IRA can allow them to invest in real estate (as well as other non-traditional retirement account investments).
Their cash (inside their 401k) isn’t stuck with Wall Street as their only option! They can roll over the cash portion into a self directed IRA (in order to avoid the early withdrawal penalty) and then from there (as trustees of their self directed IRA) they can invest in other things outside of stocks such as Real Estate.
THE MARKET FIXES ITSELF. Buy and hold and only take a little bit out when it's enough to do so. What is the point of selling lower than you bought it for out of fear?
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Blasphemy, he didn't tell the caller he was doing better than he deserved.
Got to change it up, now and then.
They actually did at the very end of the video
I notice he only says that when he’s by himself (I watch this too much!)
"Better than I deserve" creeps me out anyways...
@@lewistillett206 maybe today he felt like he deserved better lol
Market timing is a scientifically proven way to lose money. Doesn't stop anyone from trying though.
It's a bad idea, but timing the market isn't scientifically proven to lose money. If it was people would make fortunes simply by shorting.
It worked for me. I saw that in March the stock market was very very bad so I went all in.(to be perfectly honest I went all in in May, I wish I did so in March, but all's well) If you look at VTI now by the way(US total market index fund) you would see that even if you bought at the worst possible time, the peak price before the corona crisis, you would still be up today. So doing absolutely nothing was also a good choice for her.
@@Joe-jc5ol Okay, so what would you do now? Do you see VTI going up and up? Do you see another market correction coming?
@@noldi123 another market correction is bound to happen, especially with no stimulus. The Dow is almost at 30,000, which is a complete overreaction by the market. If you sold now it would probably be a good move.
@@noldi123 The hardest thing in the world: absolutely nothing. I cannot sell without triggering taxes(which is a definite loss) also, with all the stimulus thrown around and that will be thrown in the future even if a market correction happens, it is bound to rebound. Honestly I am not a market timer, I had began investing in 2019 and reading all those books. I was working up the courage to go all in since 2019, and when the corona crisis happened I thought to myself "this is it, you're half in, if there was ever a time to go all in this is it, otherwise then you don't believe in investing or the long term and you shouldn't be doing this at all" and this is the story of how I became all in.
If you think about it rationally: the US dollar is not safer than the US stock market. If the US dollar has any value at all it is because there is an economy behind it, there are products being manufactured and sold and services that are manufactured and sold. There is NO SCENARIO where the US economy collapses but cash remains a safe haven. So selling out to cash is kind of useless... If the economy is at risk I would rather be the one that owns the rental buildings people want to live in and struggle to afford, and I would rather be the bank that lends people money for a fee. I do not want to be the holder of paper money that continuously gets printed.
Buy high sell low, classic
Somebody's got to so people like us can play the market right and buy low.
and make it up in bulk!
Pretty sure that’s what Buffett always tells people to do
Buy and HOLD! HOLD! HOLD!
I started crying when she said they moved $900k to cash 😢 😢 😢
Stop touching money in a 401k til you need it!
These people barely seem capable of tying their own shoelaces, yet they're millionaires somehow. Intriguing.
It's kinda easy to become a millionaire at 50 if you save money, if you put 1000 aside every month for 20 years that's 240 thousand plus interest yield from those 20 years. And if you have your house paid off thats half million right there
Generation Wealth and Real estate. If you can afford to buy a house and leave it to your kids, you end up with a lot of people who end up with a good amount of money of money but very little common sense.
But as they say a fool and his money are soon parted.
Yeah u don’t gotta be intelligent to be rich. Just make mostly good decisions
Who knows they could be very wise outside of their financials. Clearly they had a good plan until disaster struck and they’re going to be wealthy still
If you invest 15-20% of your salary for 25 years you will be a millionaire. It's about having good habits.
Idk why people do this, pull out when it’s low makes no sense. Be greedy when people are fearful
The guy lost his parents ....he probably wasn’t thinking straight ....he’s still a multi millionaire lol
He lost his parents. The guy obviously wasn’t thinking clearly because he’s invested well otherwise.
Humans beings at their core are emotional creatures. Most mistakes you make in your life will be due to one of the following: greed, lust, fear or vanity.
Or at least that's what I have gathered from my observations, almost everyone succumbs to one or several of them, no matter how smart or educated they are.
and dont move your money around when you're fearful!!!
easier said than done.
Again, never invest or remove money because of emotion. This is often what happens if you do.
It’s not about timing the market it’s about time in market....... think about that
Thanks, Economics Explained
No one gets hurt on a roller-coaster ride unless you jump off... they jumped off.
That’s a great analogy
I had a Financial Services Mutual Fund in 2007, I cashed it out,
But in case I was wrong, I left $2k in it.
The Fund hit its stop loss point and closed
They sent me a check for $600.
Remember you can be pushed OFF, READ your Fund agreement.
Imagine $200K and they sent you a check for $60K.
Had in-law that did this after 9/11 and is still suffering
Actually, this isn’t true. One example is on September 7th 1997 four passengers on the American Eagle racing coaster at Six Flags Great America were injured in a low-speed collision on the brake run. The train coupler failed between the second and third cars, allowing the train to separate and cars to bump together. This occurred while they were all seated on the coaster.
I just want to thank this couple for selling me their stock back in March
LoL
that sucks, but they are age 50 with 1.2m in their 401k, i think they will be ok.
Hyperinflation will get rid of all the savings people have.
@@herbiehusker1889 max us will have a 5% in a year. MAX, so they will be okay
@@temkox that would be during normal times. We aren't in normal times.
I think this is why investing education is still important even if one takes the passive investing approach..
Haha you mean the education system run by these millionaires and billionaires would put actual education on investing so that they cannot profit off the massive panic selling of retail? Hahaha 😂
Well some high schools teach the dave ramsey plan at least
In March my account went to the all time lows of just over 9000 dollars, I didnt sell and instead when it was that low I invested about 7000 more dollars and now my account is sitting at about $41,000. Best financial decision I have ever made. Never panic sell, instead get GREEDY when everyone is in fear. Ressesions are the BEST time for massive growth in a span of months. I cant wait till the next recession so I can be a millionaire soon 👍
Andrew did it work?
@@ethanlee-c3d Yes, I am still investing more every month
@@AndrewChedid good luck, I have shares but I like real estate
@@ethanlee-c3d thank you, good luck to you as well, I plan to get into real estate someday
Ouch! Great coaching through this painful mistake! Getting better informed and understanding their financial options will not only garner them the wisdom needed to avoid future catastrophes, but give them much needed PEACE going forward!
They did the exact thing that Dave said not to do months ago. Cashing out when you are at the bottom is probably the worst thing anyone could ever do.
Yes but you don’t realize its the bottom at that moment, only in hindsight. To them (and many others that try to time the market) it was a good time to avoid further losses. It is only after it bounces that they realized it was a mistake.
Exactly
@@TheKeyTakeaway It's not "only in hindsight" because knowledgeable investors know that bottoms are always temporary. The market always bounces back. The caller and her husband are huge fools. There is roughly a 90% chance that the market will be higher than it was just five years ago. Instead of selling low and buying lower, they should have had some cash set aside to buy the dip.
@@jaketyler7088 hello, yes we agree that it was lower, but to say “the bottom” implies that you know beforehand that it is the valley and will go up right away. Ultimately never sell.
Based on their age it can’t be their first bear market, doesn’t make sense. Tough lesson but hopefully everybody understands. On the long term, markets will go up. If you make financially emotional decisions, don’t manage your own assets.
The Key Takeaway, I agree. I think the folks just panicked. When people panic they do weird things, things they'd not do otherwise. They may have been thinking, too, about their age. Their parents died and they're thinking we're getting "up there", oh no, the economy is affect by the pandemic, etc., etc. Good to have someone to talk to, like they said.
@Bonnie Holman right because the market did so badly with him as VP.
Felt the exact same way
The crash in 2008-2009. Lost half from the highs of 2007. He might have thought it had a long way to go down.
Early fifties is right after peak earning years. Could be that the poor fella didn’t own as much assets in ‘08/‘09 as he did in ‘20 and he probably didn’t lost his parents twice.
These people are insane. Selling out when the market is down?? The only people who get hurt during the rollercoaster are those who jump off in the middle. And they want to buy bonds now for the next decade or so?? What?? They don't understand the magnitude of some of these decisions that they're making, and they're making them based on ill-founded emotion. Don't invest in something you don't understand, and they clearly don't understand it at all.
Obviously and bond currently are a horrible investment have been for a long time
Seems like they just saved overtime and thus ammased all of this money in there old age without even learning basic investments 1.2m would be enough to retire on dividends and get a income of $36,000 if only at 3% AR.
I wish I had $1.2m /£1million I would be set for life on the dividents and could just work part time.
They fkd up when is that amount of money they should have sought some professional input literally they just cashed out there money pointlessly and are now liable for tax probably to the level beyond any market downturn they had.
If they needed cash could have just cashed out 200k and made sure to trim there portfolio to trim weak companies and left one million in stocks and just wait .
@@jamesk8891 they are not liable for anything tax wise. It was all I their 401k retirement. They just sold the stock and put it into a money market account in their 401k.
One of my very educated very intelligent coworkers panicked back in the financial melt down over a decade ago. He moved everything in his 401k to cash from stocks at the bottom when things plummeted in March/April time frame. I begged him not to. In sharp contrast my husband came home and said we have to double down. I would have just left everything as it was dollar cost average in etc. nope. Hubby has nerves of steel. We front loaded our 401k and only left the amount for matching. We went without paychecks that month no the next. It was tight. We bought in at the bottom and let it ride. That panic move ended up costing him years of extra work before he can retire. Following hubby’s buy low double down strategy shaved a couple years at least off our timeline. My coworker bought back in after the market recovered the next year. Lost 20%.
I remember my first foree into a dumb sale. My account ended up being 2% less than it should’ve been if I just held serve.
So for perspective, say if I had held serve and had $100k, then invested $10k a year at 10%, after 30 years thats $3.39m. But if I start with $98k, I finish with $3.355m. That’s $35,000 at retirement, gone.
@@hornetguy9063 even worse is that people who panic do it more than once. If it was just one time when young then 🤷♀️ not such a big deal. This guy was in his mid 40s. He had 600k originally and moved it at about 300k. So he lost 300k with that one bad choice that’s would have grown in 20 years to well over a million.
They have $1.2 million. They are doing better than most 50 year olds.
Truly sorry for his loss.
What is it about people not being prepared for their parents to depart. God sakes these are in midlife age themselves..
Parents have got to talk to their teens about cycle of life and prepare them for the event
My heart always hurts in these situations, but they have time to recover, and still a decent amount to invest. Trust the markets!
I know someone who would have been able to retire with about 1-2 million, but they pulled all their money out in 2008, due to the crash plus several other tragic or emotional events. Don't underestimate the power of emotional decisions.
Dave every time I hear you say, “it doesn’t matter who is in office...” I agree wholeheartedly! I have made money during the good and bad because half of America bails out of the market depending on who is in office.
Incredible! A caller asks Dave how he is, & he doesn't say, "Better than I deserve." LOL!
You NEVER sell your stocks. EVER. When the market goes down you ONLY buy more.
How do they even get to $1m+ without knowing this?
Can y’all please reduce the amplitude of the intro volume? It’s like 10x louder than the rest of the videos
hah, im glad im not the only one who notices that. i always have to turn my volume way down so i dont blow my ear drums, then turn it up when the talking starts... i hate loud intros, its so pointless
I SECOND THE MOTION! I’M YELLING BECAUSE I CAN’T HEAR NOW!
I’ve asked twice. I don’t know why they don’t fix it, or better yet, change that harsh music.
They lost a BIG chunk of money with that stupid move. But they have almost a million dollars sitting in their 401K in cash lol. Life’s not over. Get that money back in the market. You’re still millionaires lol.
with 4% rule, that 300k would have paid them an extra grand for retirement.
@ihategooglespooks it’s crazy because you can tell they don’t want to put it back in the market. She’s talking about buying real estate with it which would chop the money in half. She mentioned bonds lol. Like she still doesn’t realize they shouldn’t have touched the money. Her husband probably watches conspiracy videos on TH-cam or something.
@@nkyryry it's because at her stage right now if they get back into stocks and it drops another 30%, they are going to have a very bad time.
Plus they have 2 properties so they are doing very well overall
they panicked... bad time to make a decision!!!!
💜Chris's calming and reassuring voice!
Thanks guys, you guys are men amongst man.
3:18 Dave’s subtle displeased shake of the head when Chris steers the call into the ditch
Emotional Decision cost the Most!
Imagine how much money these people would have if they actually knew what they were doing 😂
Right? Surprised these guys haven't been scammed out of their homes yet for how dumb they're acting
Is it any surprise in Trump's America? I can completely understand why this couple did this, and they weren't sure if America would recover at all while that man was in office. Hopefully they will be able to recover from this.
@@costco_pizza You're an idiot. Politics has nothing to do with this.
All time high 🥳
@@costco_pizza dumbest comment of the day
Good balance of semi-scolding dad and encouraging uncle 😁 👍🏻
Lol
The question should have been what size Frying pan she was going to use.
Sadly, people selling at the bottom is one reason my investments have done so well. Don't sell at the bottom! Instead, set up your accounts in a balanced method with investments in classes which tend to go in opposite directions during periods of volatility, example bonds and stocks balanced fund. That way, when one class drops, you will be selling the one that's rising or holding its value to buy the one that's dropping. This makes you buy at the bottom and sell at the top.
It’s very funny that everything revolves around money but no one teaches the other how to make money.
Check this out :
We go to school in in order to get a degree and come back and start working in any organization in order to make money.
Now my problem is why don’t they teach people about money In school?
Please I advice everyone reading this to start investing if you haven’t and those that are investors should invest more, you can’t be a millionaire with your pay check.
I think this pandemic has taught people the importance of multiple streams of income unfortunately having a job doesn’t mean security rather having different investments is the real deal...
Honestly I don’t comment on this section, But I must say this, people don’t understand that this is a great opportunity.
I'm not quite sure the correlation between her husband's parents dying and irrationally selling stock.
It apparently brought out insecurities. Cash feels safe. It gets eaten by inflation, but feels safe.
His parent's died. Then he saw his 401k lose a third of its value. He wanted one less thing to grief over.
It was an emotional decision. Losing your parents is a very emotional moment. You're not thinking clearly when it happens. How does that not make sense?
I have friends that did this too - dumped out of fear, taking a huge loss. The wife afterwards, “we had no choice!’
Rich and beans beans and rice
$900k in cash is gonna buy a LOT of rice!
Ouch. This is a rare circumstance when I think these poor people need a professional. They are too ignorant to know what to do.
this call is devastating.
This call have me a headache. It's like they want to fail.
Yikes. Time in the market beats timing the market every time.
Have you read any of the market Wizards books by Jack schwager?
Good one
I see you on a lot of other channel’s and you have the best comments
NEVER EVER NO. The 401k remains invested. And never touch until retirement.
I hope Dave remembers this call next time he is telling his callers that defined contribution plans are so much better than defined benefit plans.
"I have a quick question.."
OK, I've got time to run to the bathroom.
I don’t usually advocate a financial advisor but this couple needs one badly.
don't know why people do that with their retirement accounts when they still have 20+ years to go. it's not like it's a regular investment account gambling on individual stocks. at least they hadn't cashed out.
Time in the market > timing the market
So much for making decisions together.
And also don't invest in mutual funds, invest in ETF's. Especially at the age theyre at, mutual funds will make them nothing at all in profits.
@Anna annanymous They cost more in fees and underperform ETF's.
I feel like Dave wants us to invest and never touch the money until we are dead.
Do you have a problem with that🔫
I left mine the exact same and I'm seeing overall pretty good growth
Why!!!! I quadrupled my deposits into my retirement accounts and opened a taxable brokerage in March. You had to have seen it couldn't go down forever.
I have a feeling that sooner or later people who do things like this will give all their money to swindlers.
sold the bottom... sat in cash as it rallyied so missede the gains. this is a HUGE loss for them. took an L annd missed the gains wow. i wennt innto the crash with 55k. came out with 300k. thank god i held it down and wasnt too scared. " first crash i was in". very scary as the pnademic news AND financial markets were crashing at the same time. great learning experience.
That was a $300k lesson.
$900K went to cash inside the 401k, $350K still in the market. Early 50's? Ouch. At least they still have $1.25M in retirement when they could have had $1.6M.
They won't "recover" the trajectory they were on. That $300K "oopsie" will cost them ~$1M+ by retirement (10% CAGR for 13 years), so they will forgo ~$40K+ a year of income in retirement. The $1.25M they still have will probably grow to $4M though and give them $160K a year (4% rule here). Not the worst thing in the world when your retirement takes a hit and you only get $160K a year instead of $200K and Social Security wont be any different either way. A good lesson for all though.
Chris I would never use a third party That would be a bad move
This is better than therapy!
Yikes I only had a little invested when the stock market crashed. I took a huge chunk of the money I had invested out of my savings and just bought in such great deals. Happy I found Tesla stock when it was so cheap.
Tesla stock hasn't been cheap in a long time
@@ClaxtonBay123 I bought in before stock split have some shares at 193 and up big today
Help me out guys..I have 36k 18% interest rate (i was dumb all i was thinking of was less money paying monthly for consolidation)debt ends in 2024.
Option 1: i can pay it off in 2 yrs by increasing the monthly and using the cash security. However my emergency fund will be really low.
Option 2: purchase land (6 % interest rate for 15yrs which will be refinance in a few year to build) and consolidate the 36k into it. Monthly payment would stay the same as the 36k.for the most maybe $100 more.
PS I'm from the Caribbean so buying land to build on normally how it is..we don't really do ready build houses.
What should I do
50 seconds in and I already feel for them..... I started investing on my own using Robinhood in February. I unfortunately didn't know what I was doing and just invested in dividend stocks for a few months. Fast forward to December and my account is up 30% with a healthy amount of growth and solid dividend stocks alike. (Transferred to Fidelity as well... I have learned so much this year!)
$900k and $300k they will still be able to eat. Until the IRS still rich people problems.
You make most of your money in a bear market, you just don't realize it.
This is getting discussing. If the guy would have taken his money out and the market would have melted down, the guy would have been a genius. Nobody knows the future. How about when Dave told the couple to sell their silver just before it doubled. How much did Dave lose for them?
No penalty on early 401k withdrawals until end of 2020 (just need an excuse/reason related to CV). Still, it’s a terrible idea to be avoided at all costs.
They need to study! She has no idea what she is talking about. They have no idea what they are doing in life. It's so sad!!!
Ugh, lows in the stock market are buying opportunities, not time to be scared. The only time I have ever taken money out of an index fund was to buy a rental property other than that I just put money in every year. Never pull money out based on emotion, when the market is down put more money in.
Since the caller understands realestate think about it this way. Would you sell a house for a 30% discount just because your local realestate market declined in value? Usually the answer is no. you would likely rent the house out to cover your expenses and wait for the price to bounce back. When you own good Mutual funds and ETF's you own the biggest best companies in America. For example if you buy a fund like VOO you are buying stock in 500 companies all at once. These companies include Apple, McDonald's, Coke, Walmart, Amazon, Starbucks, Google and many more. Just like a normal small buisness the value of these companies rises as they become more profitable. Even if say one of the companies in the fund goes bankrubt and you lose your whole investment you still have 499 more to ofsett you loss. When thinking about it this way its easy to see why generally speaking in the long run americas biggest companies continue to become more profitable and thus the stock value of there companies rise and on average the fund you have all your money in increases in value.
why cant they roll the 401k into a self directed and buy a rental property if they like to, there are alot of regs to follow, but it can be done without paying a penalty and pay taxes on it
3:10 Chris heaves out the momentum anchor
Time in the Market > Timing the Market
Look at the stock market now 😂
Someone didn't HODL!
With every downturn there is a transfer of wealth because of this right here.
and one house paid off...poor people
anyone is capable of making a really bad decision...you need to make this "wack" moment motivate you to do better and seek wise counsel.
That's why you should not play investor if you have no clue how it works. When the market goes down fast, it usually comes back to the point where it was before the dip in about a month.
Exhibit A: Why the only people that get hurt on a roller coaster are those that jump off
Just WOW.
Everyone should stop being so mean and bragging about how much money y'all made in the dip, cause honestly you just got lucky. I bet for every person bragging on here, theres 2 more hiding in the shadows cause they made the same mistake.
there wouldn't have been a way for them to know the market would come bouncing back, for all we knew, the markets could've gone down and kept going down, and we'd be worse off than ever right now.
It is understandable why they panic sold, in their mind, the stock market was going down every day, and they'd rather cash out the 1 million in case it turned into 500k by the end of the year. They're approaching retirement age, and can't afford to be as aggressive. The only mistake they made was not DCAing their money back into the market when it showed signs of a rebound. Lucky for them, they have so much money that they will still be okay.
3:18 Chris screwing up is why Dave fired him....
Having large stock piles of cash is dangerous. Cash is only worth what people are willing to trade for it. In plain English between inflation, politics, etc. paper currency can go way down at the drop of a hat. Beyond some emergency fund (3-6 months worth) you shouldn't have any liquid cash. You're losing money everyday if you do. Put your money into things of REAL value. Real-estate has REAL value. It's cash value may go up and down but it's that REAL value that make real-estate valuable. Mutual funds is another REAL value investment.
If she's able to roll it to an ira she could potentially convert the holdings to real estate, but she would need to engage some expertise to make sure they don't incur penalties as a result of the timing and other details.
Gut churning. You have to life with the decisions you make, sorry it didn’t work out. Good luck in the future!!!
When you’re in your mid 50s
Losing your parents is normal.
Taking your money out is not normal
$300k that’s a huge mistake 🤔
Panic always causes the worst decisions. Only Jim Cramer would make a worse call. These people clearly need a financial planner that is a fiduciary.
Dude, when the market is down, you buy! We knew exactly why the market dropped, hang in there, and watch it come back.
Buy on the second lockdown selloff. You’re welcome
Vaccine is coming. Lockdown won't happen until Biden is in office at best. Vaccine news will keep market propped up
@@TheLivedeath A Mutated Virus, that the vaccine doesn't cover.
@@TheLivedeath it wont work
Vaccines doesn’t helps solve this problem. It’s the antibody treatment will do.
TheLivedeath I’d love to see the Biden administration attempt this as a first go around. Not only does it not pass constitutional muster to impose a nationwide lockdown, but it seems like both Pfizer and Moderna will have vaccines in production. “15 days to slow the spread”, right guys?
Don't do bonds... please
People in their 50s and 60s be scared of everything when it comes to money. 🤨
If their employer allows it, or they leave their job, they can rollover part or all of their 401k into a IRA. If they are confident in their real investing skills, a “self-directed” IRA can allow them to invest in real estate (as well as other non-traditional retirement account investments).
"Oh no! He sold at the bottom!" Easy to say that months later. LOL
Their cash (inside their 401k) isn’t stuck with Wall Street as their only option! They can roll over the cash portion into a self directed IRA (in order to avoid the early withdrawal penalty) and then from there (as trustees of their self directed IRA) they can invest in other things outside of stocks such as Real Estate.
THE MARKET FIXES ITSELF. Buy and hold and only take a little bit out when it's enough to do so. What is the point of selling lower than you bought it for out of fear?
Dollar cost average over the next year. Put in 80K a month for the next year