Worst Financial Fears

[broncocountry25]

There is a lot of planning on this forum and different people with various scenarios they are planning for.

For those who are retired now.

What was something you feared that could potentially happen in retirement that did or did not happen?

[jebmke]

“Fear” is a loaded word. I retired in December, 2007. Then 2008-09 happened. Not my fault.

[RetirementClass2021]

That the brokerage firm that holds my retirement portfolio would go under and all my money
would be gone. They are still in business .

[Mike Scott]

The time on the doomsday clock has been reduced 10 seconds. You should be afraid but there is probably not much to do about it as an individual.

[celia]

There is a lot of planning on this forum and different people with various scenarios they are planning for.

For those who are retired now.

What was something you feared that could potentially happen in retirement that did or did not happen?

I could die!

It hasn’t happened yet (as far as I can tell).
But when it does, I won’t worry about it (because there’s nothing for me to do). I’ve already done most of what needs to be done to prepare for it.

P.S. I’m also ready for the overdue earthquake, here in California.

[UpperNwGuy]

I retired in 2013. I did not have financial fears. I'm old enough to have lived through the stagflation of the 1970s, the 1987 Black Monday crash, the 2000 dot com crash, the 2008 global financial crisis, and numerous Federal government shutdowns. I assumed that these were typical worst case scenarios, and I was ready for them, so I didn't fear them.

[PowderDay9]

The time on the doomsday clock has been reduced 10 seconds. You should be afraid but there is probably not much to do about it as an individual.

+1

I spent some time learning about the after effects of a nuclear war. A nuclear winter is terrifying. Billions of people could starve. I'm much more worried about this than anything financial.

Sounds like one of Bernstein's 4 deep risks. Devastation.

[DoctorE]

I retired in 2013. I did not have financial fears. I'm old enough to have lived through the stagflation of the 1970s, the 1987 Black Monday crash, the 2000 dot com crash, the 2008 global financial crisis, and numerous Federal government shutdowns. I assumed that these were typical worst case scenarios, and I was ready for them, so I didn't fear them.

Were you invested in those times? Did you keep a journal about your emotions around those times?

[cheese_breath]

I imagine you're asking this question because you want to benefit from our experiences in preparing your own retirement plans. That's a good thing.

But even worse than the fears is the unexpected which you don't plan for. In my case it was a massive stroke to DW, followed by 3 1/2 years in hospitals and nursing homes, and finally death by COVID.

I was totally unprepared. Other than wills that we'd written over 30 years previous, we had done nothing about estate planning. I had no financial POA, medical POA or HIPAA authority from her. As her husband I had some authority in the hospitals and nursing homes, but Social Security, Medicare and her medical insurance companies wouldn't talk to me without her verbal permission. But the stroke left her unable to speak. I consulted a lawyer, but he told me the state (Michigan) required her verbal consent in order to grant her POAs and HIPAA authorization.

We stayed in Michigan for a year after her stroke, and then I moved us to Texas to be near her daughter. (The daughter was the best one to assume responsibility for her care if anything happened to me.) Things must be a little more lax in Texas because I found a lawyer who would provide the POAs and HIPAA document base on her head shake responses to yes-no questions. He also created a trust to provide for her medical care if I passed on before her. I also learned about becoming her Social Security representative payee from others on this forum and completed that process.

Finally I could sell the house and my truck that I left in Michigan in care of her son who lived there. I couldn't sell them without her POA because she was joint owner. The house set vacant for ten months from when we left Michigan until I could finally sell it.

I know this is long winded, but I'm trying to drive in the point; don't drag your heels on getting your estate plans developed and documented by competent estate attorneys.

BTW, you now have the option of designating your representative payee in advance on your Social Security account.

[chris319]

Not my worst fear, but high on the list is that my social-security benefits will be drastically reduced.

[albireo13]

Congress will raid Social security to fund other projects.
Too many still think of social security as a hand out.

[H-Town]

There is a lot of planning on this forum and different people with various scenarios they are planning for.

For those who are retired now.

What was something you feared that could potentially happen in retirement that did or did not happen?

The U.S. dollar is worthless. That is the U.S. fails as a country, whether because of war or self-inflicted drama.

Your portfolio, whether it's $10 million or $10,000, is worth the same: a bag of dirt.

[quantAndHold]

Along a similar line to cheese breath, mom died with a will that was written when I was 10, that named as executor my dad first, then a family friend who died shortly after the will was written. When mom died, dad never finished properly settling her probate. After dad died a decade later, we kids had to reopen mom’s probate to handle a couple of important, but low dollar value things. It took us weeks of phone calls and googling to prove that the family friend had died in 1980. We were on the verge of having to get a court order to get the vital records department to release the guy’s death certificate.

The moral of the story is to keep your estate plan and documents up to date. And if you’re handling probate for another person, please finish the job.

As far as my own fears, I retired when the Affordable Care Act was a new thing, and the people in power at the time were actively trying to repeal it. I had a friend in the pre-ACA days that was bankrupted by a car accident that left her unable to get insurance, so I knew that I was potentially on thin ice. My Plan B was always to go back to work, but now that I have a life threatening illness and am not capable of working, I realize that might have been foolish. Fortunately, it all seems to have worked out.

[Good Listener]

It didn't happen to me. I have a chronic neuropathy and I'm working with some specialist with meds costing 5 or 600 a month. Which by the way I don't think will work. Then I broke my back two weeks ago and I'm paying a fortune for aides and delivery of medicines and all sorts of things. And if I didn't have that money I don't know what I would do. I get grocery deliveries and people to clean and everything. My worst fear would be having to take care of myself without the resources. That's all that money matters for. And my daughter lives 8 miles away and has not seen me in 10 days. She calls everyday, whoopee..She just tells me to get help and pay for it which I'm doing and her percentage inheritance is going to go down.

[secondopinion]

There is a lot of planning on this forum and different people with various scenarios they are planning for.

For those who are retired now.

What was something you feared that could potentially happen in retirement that did or did not happen?

The U.S. dollar is worthless. That is the U.S. fails as a country, whether because of war or self-inflicted drama.

Your portfolio, whether it's $10 million or $10,000, is worth the same: a bag of dirt.

Unless one has more than US bonds, of course.

[abuss368]

There is a lot of planning on this forum and different people with various scenarios they are planning for.

For those who are retired now.

What was something you feared that could potentially happen in retirement that did or did not happen?

Not having enough time to do the things I want.

Best.
Tony

[abuss368]

Dave’s Bitcoin Cayman Island Hedge Fund goes upside down and backwards along with my portfolio, hopes, and dreams!



Best.
Tony

[Squirrel208]

On even-numbered days I worry about not having enough money to match my lifespan.

On odd-numbered days I worry about not having enough lifespan to enjoy my money.

[BogleKev]

I know this thread is for those already retired but I must say my greatest fear as I approach retirement in the coming few months is that I will do so and then face the regretful realization that I should have done it several years earlier than now. Living through the lockdown ended up realigning my priorities and trimmed 3 years off my target date when I realized the runway is shorter than we think.

And to @cheese_ breath - I read your story above and am sorry to hear of your loss and the struggles to get things back on center. Glad you got there.

[secondopinion]

Congress will raid Social security to fund other projects.
Too many still think of social security as a hand out.

I am not assuming it will be there for me, but it would be risky if they did close it down (I do not like the prospect of SSDI being removed since I cannot qualify for independent disability insurance).

[Dave55]

Dave’s Bitcoin Cayman Island Hedge Fund goes upside down and backwards along with my portfolio, hopes, and dreams!



Best.
Tony

That fund went under today. Very sorry Tony.

Dave

[abuss368]

Dave’s Bitcoin Cayman Island Hedge Fund goes upside down and backwards along with my portfolio, hopes, and dreams!



Best.
Tony

That fund went under today. Very sorry Tony.

Dave

NO!!!! Is the Gulfstream for the taking by the Hedge Fund investors?


Tony

[typical.investor]

Dave’s Bitcoin Cayman Island Hedge Fund goes upside down and backwards along with my portfolio, hopes, and dreams!



Best.
Tony

That fund went under today. Very sorry Tony.

Dave

My fear is that damage wouldn't be limited to Dave's Hedge Fund.

According to the 2022 CFA Institute Investor Trust Study, 94% of state and government pension plan sponsors said they invest in cryptocurrencies, along with 62% of corporate defined benefit plans and 48% of corporate DC plans.

Also, the banks that the crypto industry used have borrowed billions from the Federal Home Loan Bank system which was originally designed to support mortgage lending in the 1930s (WSJ)

The Financial Stability Oversight Council (a Treasury-led panel of the FED, SEC) warns that systematic risk to the stability of the US financial system is a real possibility should the crypto industry become more interconnected without an appropriate regulatory structure.

So maybe my fear is that my bank goes under and the FDIC insurance I thought would protect me isn't available as actually it is subordinate to liabilities of Federal Home Loan Bank system, and all the relevant policy makers are cashing in their donation checks from the crypto industry and in general my financial assets plummet as crypto goes to zero as the US financial system melts due to it's ties. Meanwhile TikTok is showing endless celebrations of the actors in far away locals who managed to make the collapse happen.

To me it's a matter of when, not if; unless something is done and appropriate protections are put in place.

The OP said 'Worst Financial Fears' right?

[Squirrel208]

Congress will raid Social security to fund other projects.
Too many still think of social security as a hand out.

This is not likely, if not impossible, to occur. SS has never been part of the fed's general fund. SS revenues, collected via payroll taxes, are invested in Treasury securities by law. IMHO opinion the greater concern is that the financial demands on the program will eventually exceed the funds collected. More hands held out vs fewer coins into the coffer and all that.