Does the Silicon Valley Bank collapse affect the card market?

[Bashbros]

Originally Posted by bigdog2003

Once again, what big companies were doing this? I know individual people were, but you said big companies did it.

What big company CEO took company money and used it to buy alternative investments to have for the company?

Where did I say big companies were doing it? I never said that anywhere in this thread.

[hermanotarjeta]

Originally Posted by Bashbros

Where did I say big companies were doing it? I never said that anywhere in this thread.

Bonvoyage was talking about big business owners taking money out of the bank, and via quotes through other members it made you sound like you believed big business pulled their money out and invested in sports cards with the money.

I thought the same thing.

[Stifle]

I can remember roughly 40 years ago the so called experts were predicting a ice age to occur. Then Global warming snuffed that prediction. Even chicken little predicted the sky would fall? In the end, there will always be an eb and flow. Life is short, enjoy the ride.

[Jbead61]

Originally Posted by BonVoyage

Please explain how my 401k is shot.

It’s not shot but it’s down from a year ago and is stagnant.

[BonVoyage]

Originally Posted by Jbead61

It’s not shot but it’s down from a year ago and is stagnant.

Down 4% is hardly shot


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[meandsharon11]

I think this thread is going to effect the card market

[KhalDrogo]

Originally Posted by BonVoyage

Down 4% is hardly shot


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The average 401k lost 20.5% in 2022. The best performing Vanguard mutual fund is only up 11.94% YTD.

[jplarson]

Originally Posted by Jbead61

It’s not shot but it’s down from a year ago and is stagnant.

At least you have social security each month.

[mmier118]

Unfortunately I have/had a decent position in Signature Bank preferred A shares, about a 3% position so while not catastrophic I for sure underestimated the chance of my shares going to 0. I will be adjusting all of my spending going forward, not just because of this one issue but more due to what may be possible ahead. I was already making small adjustments and curtailing spending but this puts my plan into hyperdrive and spending on cards will probably be reduced by 80% or so, with the goal of getting it to 0. I don’t think it will ever be 0 but it for sure will be much less than before. I know I am just one person but I imagine there are others like me, it just takes time and a catalyst to motivate us to start preparing for any trouble that might lie ahead, even if that trouble isn’t a crash but it could be persistently high inflation. And I’m starting to feel like they either have to choose between a crash or persistently high inflation, but it may be difficult to avoid both.

[Jbead61]

Originally Posted by BonVoyage

Down 4% is hardly shot


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4 percent is still at a loss and the percentage would be larger if you excluded your monthly pre tax deposits. You essentially are making no money on the money you are putting in other than just your typical deposits and your match percent. A 401k is supposed to grow on its own.

[jplarson]

Originally Posted by Jbead61

4 percent is still at a loss and the percentage would be larger if you excluded your monthly pre tax deposits. You essentially are making no money on the money you are putting in other than just your typical deposits and your match percent. A 401k is supposed to grow on its own.

It's a paper loss. Unless you are retired or retiring soon, it doesn't matter. The money in a 401k isn't a pile of cash and magically 4% of it is gone. It's invested in different securities, indexes, stocks, etc.

If you have 100 shares of VIIIX in a 401k you didn't lose 4 shares. The value of VIIIX might have gone down 4% but that's the ups and downs of the stock market. Over the last 10+ years it's gained overall.

I've got decades before I retire. I'm not worried about dips in my 401k right now. In fact those are the times that I'm getting a bit extra for my contributions. Instead of say 1 share of VIIIX, I'm getting 1.5 shares. What a deal!

[BonVoyage]

Originally Posted by Jbead61

4 percent is still at a loss and the percentage would be larger if you excluded your monthly pre tax deposits. You essentially are making no money on the money you are putting in other than just your typical deposits and your match percent. A 401k is supposed to grow on its own.

No, 4% is what the DJIA is down over the last year, not what my account is down including deposits. I just do index funds so it’s a rough approximation.

A far cry from “shot”.


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[Brobocop]

Originally Posted by Jbead61

4 percent is still at a loss and the percentage would be larger if you excluded your monthly pre tax deposits. You essentially are making no money on the money you are putting in other than just your typical deposits and your match percent. A 401k is supposed to grow on its own.

I don’t get this concept. I began investing in my 401k in 2008 when I got my first job. It sucked to watch it go down after each pay but I was told it’ll come back so just ignore it since you don’t need it for quite some time. Had I stopped investing then I wouldn’t be in the position I’m in now. My 401k is pretty darn large for my age and I’m proud of it. Is it down from last year, yeah. Do I believe that it’ll come back from this, yeah. The market isn’t going to have a green year each year.


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[Astros19]

Originally Posted by Brobocop

I don’t get this concept. I began investing in my 401k in 2008 when I got my first job. It sucked to watch it go down after each pay but I was told it’ll come back so just ignore it since you don’t need it for quite some time. Had I stopped investing then I wouldn’t be in the position I’m in now. My 401k is pretty darn large for my age and I’m proud of it. Is it down from last year, yeah. Do I believe that it’ll come back from this, yeah. The market isn’t going to have a green year each year.


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What's being ignored is your dollars you're putting in are buying in low as well.

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[Brobocop]

Originally Posted by Astros19

What's being ignored is your dollars you're putting in are buying in low as well.

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No that’s my point. My 401k is in fantastic shape since I was contributing 10% of my pay in 2008 and my company matched 6%. That set me up pretty dang well and has allowed me to consider retirement much earlier or at least take a job that’s more intrinsically pleasing than working a corporate gig.


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[jcmel323]

cant even access my ally savings account. wow

[Jbead61]

Originally Posted by KhalDrogo

The average 401k lost 20.5% in 2022. The best performing Vanguard mutual fund is only up 11.94% YTD.

Thank you for posting accurate info. I guess everyone supposedly is only down 4 percent. I forgot I’m on a card trading website, I was seeing I was going down a rabbit hole with so many Gordon Gekko’s running their portfolio’s supposedly.

[mmier118]

Yeah I find it funny that these guys act like inflation is fine and that the stock market doesn’t go flat for decades at a time, especially after a run like we just had. It doesn’t take too many years of 6% plus inflation and flat to slightly down portfolios to ruin all of our retirement plans. But a select few here are convinced all is fine because they are going to retire on cardboard profits from Mahomes and Trout lol. I heard that two decades ago too, except it was Griffey and Emmitt Smith lol.

[Astros19]

Originally Posted by Brobocop

No that’s my point. My 401k is in fantastic shape since I was contributing 10% of my pay in 2008 and my company matched 6%. That set me up pretty dang well and has allowed me to consider retirement much earlier or at least take a job that’s more intrinsically pleasing than working a corporate gig.


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For the record I wasn't referring to you.

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[Jbead61]

Originally Posted by mmier118

Yeah I find it funny that these guys act like inflation is fine and that the stock market doesn’t go flat for decades at a time, especially after a run like we just had. It doesn’t take too many years of 6% plus inflation and flat to slightly down portfolios to ruin all of our retirement plans. But a select few here are convinced all is fine because they are going to retire on cardboard profits from Mahomes and Trout lol. I heard that two decades ago too, except it was Griffey and Emmitt Smith lol.

Lol, exactly! A bunch of kids posting silliness but you got my point also. These people are like typical goofballs that say “ I made money off GameStop bro and then took my profits to some Mahomes rookies that will make me millions bro “, with only a retirement portfolio down four percent because Warren Buffet’s watching my account. Some of these people are living in a bubble in their own brains.

[BonVoyage]

Originally Posted by KhalDrogo

The average 401k lost 20.5% in 2022. The best performing Vanguard mutual fund is only up 11.94% YTD.

Interesting stat. I guess we need to educate people to stop trying to pick stocks. If the avg 401k was down 20% but the dow was down 9% people made some poor choices.

[Kobe101]

Originally Posted by bigdog2003

Once again, what big companies were doing this? I know individual people were, but you said big companies did it.

What big company CEO took company money and used it to buy alternative investments to have for the company?

The scammy ALT CEO Leore did ... hopefully they go under soon

[KhalDrogo]

Originally Posted by BonVoyage

Interesting stat. I guess we need to educate people to stop trying to pick stocks. If the avg 401k was down 20% but the dow was down 9% people made some poor choices.

That is not the takeaway from those numbers.

If you’re in the Dow index fund, you’re more of a stock picker than someone who is in an S&P or other broad index fund.

Second, the majority of money being put into retirement plans are not picking individual stocks. It’s going toward huge funds managed by companies like Vanguard.

Third, retirement funds are usually not composed of only stocks. As rates rose in 2022, bonds were crushed, contributing to even further declines in 401k values.

[Blazed]

Both viewpoints in this thread about 401k's are correct depending on your level of financial literacy.

Some people are told to put money in a 401k and let it sit. They're also told if your employer matched 3-6% that's a win. The employer match is a selling point that people fall for and like to call it "free money". Sure, it's free money, but the employer match has to be vested before it actually counts which in most cases is 3+ years working there. Then take the 3% or even 6% match. If you put $1k per paycheck that's $30/$60, $60/$120 per month $720/$1440 per year. Not my ideal investment because your extremely limited on what you can do with that money. But, if this works for people and they're happy with it, that's ok.

Other people understand that putting your money to work in different ways will build wealth faster than a 401k ever could. People who understand this won't change the peoples minds who think a 401k is their "golden parachute" when they retire. And that's ok too.

It's all about perspective.

[KhalDrogo]

Originally Posted by Blazed

Both viewpoints in this thread about 401k's are correct depending on your level of financial literacy.

Some people are told to put money in a 401k and let it sit. They're also told if your employer matched 3-6% that's a win. The employer match is a selling point that people fall for and like to call it "free money". Sure, it's free money, but the employer match has to be vested before it actually counts which in most cases is 3+ years working there. Then take the 3% or even 6% match. If you put $1k per paycheck that's $30/$60, $60/$120 per month $720/$1440 per year. Not my ideal investment because your extremely limited on what you can do with that money. But, if this works for people and they're happy with it, that's ok.

Other people understand that putting your money to work in different ways will build wealth faster than a 401k ever could. People who understand this won't change the peoples minds who think a 401k is their "golden parachute" when they retire. And that's ok too.

It's all about perspective.

But not only is that free money, it’s an instant gain thanks to the tax benefits. Ever dollar contributed to my work retirement accounts in 2022 saw a 42% gain at contribution.