Greetings, fellow Patriots! This subject has been on my mind for quite some time now, but I didn't want to post here for fear of a backlash. But here goes.
Many people say a serious crash in the stock market is part of The Plan. What about those of us who sacrificed and saved and skimped to pad our retirement funds/IRA'S/Nest eggs, etc?
My husband and I aren't rich, but we've planned for our retirement for the past 30 years and should be able to retire comfortably, which is only a few years down the road. What will happen to all of our hard work, and everyone else who has done the same?
Please don't bash and say I'm missing the bigger picture. We have worked hard for what we've built! I just don't see Trump allowing the average Joe's life savings go up in smoke!
Thoughts, please.
If done right (stock purchases registered in your name), then you have legal ownership rights in the companies themselves. If the stock market crashes, the underlying stocks will still be worth what the company is worth. The fund on the other hand relies on the company that owns the fund and has nothing to do with the underlying stocks except in that those stocks count as an asset for the company that owns the fund. If the company gets liquidated (which I predict will happen in droves to banks in the near future) those assets are liquidated and used to pay off debts. Part of that debt belongs to you because of your contractual withdrawal rights, but only a small part and you won't be first in line. It's also only worth whatever the stock is worth at the time, which will be rock bottom prices in such a scenario. If you own the actual stock in the underlying companies however, you can simply hold on to the stock and when it rebounds (assuming not a total societal collapse) you will have lost nothing.
In order for Funds to be a "good" investment two things are required: