How much money have you lost from your cruise stocks?

[mnocket]

9 hours ago, sverigecruiser said:

 

The most I can loose is 79%, as long as I pay my income tax. I will get 21% back in taxdeduction if the whole value of an investment is gone.   

 

I get what you are saying, but it depends on how you view your losses.  From a tax standpoint if you're cost basis is 10K and the stock triples to 30K before crashing to zero - your deductible loss is 10K which can offset short or long term gains.  However, to many an investor we count portfolio loss, i.e. if our portfolio was worth 100K and fell by a third in this recent downturn, we feel like we lost 33K - even though our portfolio may still be in the green depending on our cost basis.  I understand the argument that paper losses aren't real, but try telling anyone that just saw their IRA balance drop by a third that they haven't really lost any money. Paper losses may be "unrealized" losses, but your net worth is still diminished.

[sverigecruiser]

4 minutes ago, mnocket said:

 

I get what you are saying, but it depends on how you view your losses.  From a tax standpoint if you're cost basis is 10K and the stock triples to 30K before crashing to zero - your deductible loss is 10K which can offset short or long term gains.  However, to many an investor we count portfolio loss, i.e. if our portfolio was worth 100K and fell by a third in this recent downturn, we feel like we lost 33K - even though our portfolio may still be in the green depending on our cost basis.  I understand the argument that paper losses aren't real, but try telling anyone that just saw their IRA balance drop by a third that they haven't really lost any money. Paper losses may be "unrealized" losses, but your net worth is still diminished.

 

I understand you and agree with you.

[clo]

10 hours ago, sverigecruiser said:

 

I have made lots of money on the stock market without any inside information.

As have we.  But our money is professionally managed by a reputable company.

[clo]

10 minutes ago, mnocket said:

 

I get what you are saying, but it depends on how you view your losses.  From a tax standpoint if you're cost basis is 10K and the stock triples to 30K before crashing to zero - your deductible loss is 10K which can offset short or long term gains.  However, to many an investor we count portfolio loss, i.e. if our portfolio was worth 100K and fell by a third in this recent downturn, we feel like we lost 33K - even though our portfolio may still be in the green depending on our cost basis.  I understand the argument that paper losses aren't real, but try telling anyone that just saw their IRA balance drop by a third that they haven't really lost any money. Paper losses may be "unrealized" losses, but your net worth is still diminished.

In '08 our IRA lost 40% and we were already retired so no new money was going in. But we changed our lifestyle - for some that would mean no cruising 🙂 - and we came all the back and then some.

[sverigecruiser]

15 minutes ago, clo said:

As have we.  But our money is professionally managed by a reputable company.

 

I manage it myself so all decisions, good and bad, are my responsibility!  

[clo]

3 minutes ago, sverigecruiser said:

 

I manage it myself so all decisions, good and bad, are my responsibility!  

We're very wise with our money but we're not professionals with all the data and programs they have so we leave it to them. With a face to face meeting at least once a year. We don't perform surgery on ourselves either or act as our own attorney. 

[rkacruiser]

1 hour ago, mnocket said:

 

I get what you are saying, but it depends on how you view your losses.  From a tax standpoint if you're cost basis is 10K and the stock triples to 30K before crashing to zero - your deductible loss is 10K which can offset short or long term gains.  However, to many an investor we count portfolio loss, i.e. if our portfolio was worth 100K and fell by a third in this recent downturn, we feel like we lost 33K - even though our portfolio may still be in the green depending on our cost basis.  I understand the argument that paper losses aren't real, but try telling anyone that just saw their IRA balance drop by a third that they haven't really lost any money. Paper losses may be "unrealized" losses, but your net worth is still diminished.

 

I understand the angst one would feel if they closely follow their portfolio's balance.  Personally, I think following that balance very closely is a mentally unhealthy thing to do.  

Anyone who has been in the Market for any length of time has seen one's net worth rise and fall like the tide.  That's what Markets do.  

 

1 hour ago, clo said:

In '08 our IRA lost 40% and we were already retired so no new money was going in. But we changed our lifestyle - for some that would mean no cruising 🙂 - and we came all the back and then some.

 

2008-2009:  What an interesting year financially!  All of my accounts--IRA or not--the monthly/quarterly reports were certainly not interesting reading!  Like you, small adjustments of my lifestyle, i.e. do I really want to see that movie in the theater?, rather than my favorite local steakhouse--Outback would do, etc.  The dark financial clouds lifted and the Sun shone.

 

I hope that this scenario will be repeated currently.  I am having great difficulty in making a decision to buy more securities of any company because of the current political leadership in Washington.  I lack faith in it as compared to the leadership that the Nation had during the 2008-2009 period.

 

[clo]

2 hours ago, rkacruiser said:

I hope that this scenario will be repeated currently.  I am having great difficulty in making a decision to buy more securities of any company because of the current political leadership in Washington.  I lack faith in it as compared to the leadership that the Nation had during the 2008-2009 period.

 

This is so unlike '08. Different causes, different 'management.'  In '08 with a balanced portfolio it took us 18 months to recover. No sense of what will happen this time.

[Charles4515]

This is so unlike '08. Different causes, different 'management.'  In '08 with a balanced portfolio it took us 18 months to recover. No sense of what will happen this time.

Having a balanced portfolio is key. In 2008 I had a slight aggressive portfolio since I was still working. After retiring I changed my portfolio allocation to balanced. In my situation I don’t think I will make any changes since I also have a pension, and no mortgage. In five years I never needed any funds from my investments. I think without the pension I would have to have a different strategy.


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[clo]

8 minutes ago, Charles4515 said:

 

Having a balanced portfolio is key. In 2008 I had a slight aggressive portfolio since I was still working. After retiring I changed my portfolio allocation to balanced. In my situation I don’t think I will make any changes since I also have a pension, and no mortgage. In five years I never needed any funds from my investments. I think without the pension I would have to have a different strategy.


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Pretty much our situation but we've had two homes for quite a few years so, even without mortgages, there are still expenses. And we were glad that we don't have to do the RMD this year. We'll need some money but we can take it out of another account that doesn't have any tax implications.

 

(I just got 'wet eyes' thinking about the people who have lost their jobs and are dependent on our food bank.)

[navybankerteacher]

5 hours ago, clo said:

We're very wise with our money but we're not professionals with all the data and programs they have so we leave it to them. With a face to face meeting at least once a year. We don't perform surgery on ourselves either or act as our own attorney. 

Good idea -  it makes sense to let experts cut your hair, dry clean your clothes, work on your car, and plan your investments.  I rolled my 401 k  over from my employer to an IRA with UBS because of more flexibility/responsiveness - and meet with my manager two/three times a yearly to review, discuss, and then I  largely agree with his recommendations - but have not surrendered discretion.

[clo]

6 minutes ago, navybankerteacher said:

 I rolled my 401 k  over from my employer to an IRA

Fidelity already had the 401(k) through Bob's employer but we also rolled it into an IRA. We're clearly on the same page with 'our guy.' And, like you, we can always make changes. When we called him after I found out HERE about the RMD change for this year, he absolutely agreed with our decision.