This video discusses retiree’s investment losses so far in 2022, using the Fidelity Age Based Funds (called the Fidelity Freedom Funds) for those who retired between 2010 and 2020 as a benchmark. The video also discusses what things look like for those close to retirement using the Fidelity Freedom Fund 2025.
As the largest 401k provider in the world, Fidelity has over $11 trillion of assets under management. This data gives excellent insight into just how big the 2022 losses are for retirees who are invested in these and other similar types of investments.
The video concludes with what to do in a bad market and Geoff discusses his own actions in difficult market conditions such as these.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider….(read more)
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Retirement is supposed to be a time of financial freedom and stability, but unfortunately, that may not be the case for some retirees in 2022. According to recent data from Fidelity, many retirees suffered significant investment losses in the past year, leaving them with less money to support themselves in their golden years.
The data from Fidelity reveals that retirees aged 65 and older who have been investing with the company for at least 10 years saw their average account balances decrease by 10% in 2021. This is a stark contrast to the average increase of 21% that these same retirees saw in 2020.
This decline in retirement savings can be attributed to a number of factors, including market volatility, inflation, and supply chain disruptions caused by the COVID-19 pandemic. The past year has been particularly challenging for investors, as the stock market has experienced significant swings and unpredictable fluctuations.
Retirees who were heavily invested in the stock market likely felt the impact of these changes more strongly than those with more diversified portfolios. With the unpredictability of the market, it’s important for retirees to be cautious and conservative in their investment choices.
Of course, investment losses aren’t the only concern for retirees. Rising healthcare costs and other expenses can also put a strain on retirement savings. It’s important for retirees to budget carefully and plan for unexpected expenses in order to avoid running out of money during their retirement years.
Despite these challenges, there are steps that retirees can take to minimize their investment losses and protect their retirement savings. One of the most important is to work with a financial advisor who can help them navigate the complex landscape of retirement planning and investing.
Retirees should also consider diversifying their portfolios and investing in a mix of different assets, such as stocks, bonds, and real estate. This can help to reduce risk and protect against market volatility.
Overall, the news of investment losses for retirees in 2022 is certainly concerning. However, with careful planning and a conservative approach to investing, retirees can still achieve financial stability and security in their golden years.
Please see one of my other popular videos: Does One More Year of Work Matter for Retirement Safety. https://www.youtube.com/watch?v=rIdSW1fYw4M&list=PLK_bqDc95KRBBTiAWWWX1XKAQ1Tss6SQR&index=54
The Market has been pretty bad until today it decided to surge. Everybody was Practically Crying then. It kept dipping. That's what you get when you feel you can navigate the process on your own. Big thank to Hilder Ferguson. I'm not bothered with how bad the Market is because my assests are insured due to her advice and I still receive my profits
I find
My retirement accounts are self directed which offers me the flexibility to trade options and inverse ETFs. Since the beginning of the year my account is is up over 20%. Considering how the market is going i am doing OK.
Thanks Brandon!
Thank you for all your personal finance
information and advice .
So glad I have a state pension. I wouldn't want to have to depend upon my portfolio over the next two years in retirement. I think sometimes the advice given by financial planners are too optimistic. While I am going to have a higher ratio of social security to my pension and interest income. I feel comfortable about it this year.
The stock market has pumped up so much . Houses followed with the holding down of interest rates by the FES. Once again excess greed took over Wall Street. We are down to Pre-Covid levels and at that time , in my opinion, sticks were already overvalued 20-30%. These boom/bust cycles are going to happen more frequently . The mother of all bubbles is starting to deflate
This is happening right exactly when I need to start drawing from my target retirement savings which sort of means I bought high and will have to be selling low to have money to live on. That's a horrible way to start retirement and I'm already 73 years old. It took me that long to barely have enough to live on IF I live very frugally. I do not have money to pay a professional for advice. I suppose I should be glad I have any savings at all. A whole lot of people have nothing but social security. I can't live on my $1300 a month. That won't even cover rent; at least I have a paid for house.
Geff your video is a great service to the retirement community. Thanks. Do I need to adjust my life style down and by how much when my retirement investment is not doing well? Or just follow the 4% rule and stick with the plan, believe that the average will turn out as plan in the long run?
You've done an absolute top notch job on this. Very informative! I’m a dividend investor, my wife and I have invested in the s&p500, both through my TSP with the government and through fidelity in her 401-k. Cashed out 370k from the S&P and invested with a full service broker.. Until about 3years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of the month at 59, while my wife will retire next year at 54. We currently have 5.7 million in out tex deferred savings.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Thank you, I Love your Channel!
Mine is indeed taking a big hit, and I am hoping it will again go back up, fingers crossed.
So it seems all these comment sections for financial videos devolve into the same fake back-and-forth conversations intended to bait people into scams (like Neil’s and Mohammed’s). Wish YouTube could find a way to stop it. I’m just going to stop reading the comment sections going forward.
I will forever be indebted to you you've changed my whole life continue to preach about your name for the world to hear you've saved me from a huge financial debt with just little investment, thanks so much Mrs. Kristin Hartman
Thank you for your detailed explanation.
No need to panic! Just ride it out and view this as a time to buy cheap!
<I totally agree with what you are saying….The fact is, BTC is the future of crypto and the questions traders ask themselves now if this is right time to invest? before jumping into conclusion i think you should take a look at things first. for the past few days the price of BTC has been fluctuating which means the market is currently unstable and you can’t tell if it is going bearish or bullish. while others still continue to trade without the fear of making lose, others are being patient. it all depends on the pattern with which you trade and also the source of your signals. i would say trading has been going smoothly for me, i started with 5.5 BTC and i have accumulated over 16.5 BTC in just three weeks, with the trading strategy given to me by expert trader Mr Kennedy Williams
My husband has a retirement, he is unable to find the holder of his money. What do we do?
Retired, my RMD and SocSec give me more cash than I need, what do I do with the cash considering inflation. I'm not a trader.
Good, but a lot of references to complex concepts difficult to follow. One is definitions and see-saw relation between equities and bonds.
3 words. Liberal democrat policies
Why do money managers still recommend bonds when the Fed has announced multiple 500 point basis increases? Bond funds valuations are going to get crushed. And with the traditional mixes of target date funds, the older you are, the more you will be impacted by these increases. IMO a better strategy for those that need income are JEPI, and other equivalents that generate income from covered call strategies.
Thank you! Excellent information and timely for my retirement decision in 2022.
One thing that's helping a lot of my retirees is looking at the number if shares they currently own and how many they had 6 months ago. Most of them reinvest the interest/dividend so each month their accumulating more shares. You haven't lost anything, as long as you still have the shares. And actually, with Dollar Cost Averaging, you're purchasing more shares while the price per share is down.
Wow, this lady is making money for people hand over fist! Why does she continue to do that for you when she could be taking her 10% charges and investing her own money to make these for herself? She must be a humanitarian.
I was going to retire this November. Last time I looked I'd lost 10k.
I don't like to look now.
Now I've decided I'm going to stay working till 2024 and keep my retirement funds right where they are. Oh, well. It's not a bad job.
Good morning sir. I must say-another great presentation! Personally, I am down very little in 2022. And since early 2021, I am still up 2-3%. I listen to my advisor, and kick around ideas. I stayed with food and utility companies(e.g. WEC), High dividend companies including S&P ETF’s and stayed away from mutual funds. For me, when 2 year treasury’s go north of 3% I will be moving significant portions there. I made some good personal decisions(e.g.UPS), but for the most part I recommend listening to your advisor.
As I am sure you are aware inflation is significant to all of us. I believe it’s worse that the national numbers indicate. As a retiree, the things we like to do, are much more costly. I feel for the average worker that travels daily to work. These are problematic times.
Again, I would ask you to think about offering your presentations to the CPE world for fellow CPAs. As someone who sat thru 40 years of not great stuff, your presentations and specifically your presentation style would be welcome in that environment.
Thanks again-have a wonderful day!
Once China gets back on track, supply chains open up and things should begin moving in the right direction. Pull in your arms and go for the ride. Time will fix all ills.
Nice content! The best way to find that balance between saving and living is by investing, this way you get to have your savings intact and then live comfortably of the revenue coming in from your investments.
This is why you live well & don't listen to these guys. They have no idea what you face years down the road.
You scrimp & save & do without just to watch $$$$ hyperinflation & devalued dollars.
You should have bought that new dream car , taken the trip to a tropical paradise when you were younger.
Great video. Very clear, and sadly, accurate of what my portfolio has done over the last 5 months. Your videos are helpful to me to affirm my retirement planning was sound and to keep my level of financial panic at a minimum. Retiring abroad in portugal has at least reduced the hit of inflation in my day to day expenses. Keep up the good and generous work
As soon as the crash is over, I don’t see a point in holding bonds. The nasdaq should both bottom and recover first. I’m not going to have bonds protect my account from sinking when I’m already at the bottom of the sea. I think they would just just weigh down growth potential in the first year of the recovery. Any thoughts?
Don’t underestimate the damage the President can produce.
I had the idea to move a chunk of funds out of 401k, take the tax beating, put into trivial income producing property (4 travel trailer lots, with a home in renovation). I think I lucked out.
Hmm…what changed the last couple years.
BTW very good video. Thank you
I hate to say this. All of the people who voted with hatred and emotion instead of business sense deserve what your reaping.
This president and his administration are destroying the fabric of this country.
We have high crime. Incredible inflation. Oil dependency international unrest.
And folks this is just the beginning.
Put your seat belts on.
I prefer adding more diversity to my portfolio so currently have about 30% in real estate. The real estate generates income and has appreciated well in the last few years. I keep enough cash to go three years without needing to sell any stocks.
Good advice. Thanks.
IF you got out of the market in Oct and went to cash, would you get back in now or wait even longer to see how far this goes down. Each little uptick like today makes one feel like time to get back in but I got out because i feel a larger corrections is coming. What do you think? What would you do if 65 yr old, a bit risk averse. Will always stay at least 25% to 50% in cash but will get back into the market with the other 50% at some point? in the future and maybe gradually from now until then.
I'm surprised that it didn't come sooner giving the way that the current administration has caused nothing but bad out comes in everything it's done! I hope that Washington will try to straiten out some of it's obvious flubs! It feels like we're in a downward spiral without even looking at the markets. I just signed up for Medicare so this couldn't be coming at a worse time unless we see a recovery in a couple of years vs a decade or longer! I wish I had put aside more in short term reserves, but it's too late for that. I've found that the Target Date Funds (2025) have had a surprisingly good return over the years along with other funds including REIT Funds most of them are in index funds.
Pretty new subscriber here and get a lot out of your videos. We really liked this one and learned from it. Appreciate you.