Posted on 02/13/2008 4:27:16 PM PST by oblomov
Sure, but that applies if you put the money in a tin can and bury it in the back yard. You can’t use it, but I guess you can wait it out for better times.
1. If either Obama or Hillary wins, be prepared for an increase in capital gains tax. Sell all your securities with gains before the RATs can raise the tax. Even if you just buy back the same securities, you are going to be pre-paying capital gains tax on your gains to date at the old, lower rate.
2. Sit back & relax. Historically stocks do better with RAT administrations, RAT Senate and RAT House.
My own theory on this is that the RAT party is really the party of the ultra rich. Their policies are designed to preserve & protect the value of current wealth, by discouraging and penalizing work and slapping down anyone who tries to build new wealth.
Keep yourself invested in an index fund (I like QQQQ) until the smoke clears...
Oh yes, BTW, real estate is going to make a comeback someday. Sooner if the RATs are elected, simply because inflation will be higher. Nothing like a few years of 10-12% inflation to hide the housing problem in rising prices. If you can manage them yourself, rental units are going to be nice.
Hmmm, I’ve done well with gold, both the physical and the miners.
With mining stock you get dividends and compound interest. With gold you get what you got.
Interesting ideas, but I think your analysis needs to look at the other side of the equation as well: minimizing expenditures. Keep in mind that every dollar you avoid spending is esentially a dollar earned tax free. Tax saving strategies will be particularly necessary in the next few years, but other ways to spend less are going to be important as well.
Examples: shopping at thrift stores and/or on Craigslist. Not purchasing a new car (used cars a bargain this year due to repos). Buying stuff at dollar stores, which are getting to be of better quality. Comparison shopping online. Giving and receiving hand me downs. Growing a garden. Banking at a credit union instead of a mega-bank.
Then there’s paying down debt. Keep in mind that every dollar you pay in non-mortgage interest is non deductible. And even the mortgage interest deduction isn’t all that great; all the deduction does is reduce your effective interest rate.
P.S. This is a good idea. We’ll all need ideas and strategies to prosper. If you start a pinglist, please let me know.
A caveat up front. I don't know much about finance-I have the requisite 401(k), life insurance, S&P Ira, savings bonds, paid off house, etc. But I do have a gotterdammerung portfolio also, namely, 10,000 rds. of .22 ammo, which will be the wampum of the post-apocalypse (as well as ample quantities of higher caliber stuff as personal stash). Tranches, shorts, CDO's-all well and good. But think about where you'll be when the starving hordes break out of the city. Just a redneck thought.
If everyone does that, we have a deep recession, for sure.
Thanks for this.
BTW - people who think their traditional IRAs, their Roth IRAs , their 401Ks and the like are safe from Congressional depredation had better think again...
I agree, this needs to be an ongoing discussion. We really could use a pinglist to deal with the challenge.
I agree. A traditional 401k is a bet that the tax rates will stay the same or go down. The Roth IRA/401k is a bet that the tax rates will go up.
“If everyone does that, we have a deep recession, for sure.”
Not to worry. It’s unlikely to happen. Deferred gratification or even living within one’s means is not a popular idea these days. I suspect some will be forced to start living within their means as easy credit dries up, but it won’t be because of any planning or desire to do so on their part.
I don’t see it as my responsibility to spend money for the sake of floating the larger economy.
“I agree, this needs to be an ongoing discussion. We really could use a pinglist to deal with the challenge.”
Surviving socialism and prospering (relatively speaking) really does need to be on the minds of conservatives.
I’m not on FR all the time, but I’d be willing to help with a “surviving socialism” pinglist. Might be appropriate for FR activism as well.
“surviving socialism” pinglist?
Add me.
The surviving socialism pinglist sounds great!!
Put me down.
You might want to put up an announcement post so we have a nice group of members.
Put everything in diversity-training companies.
Please add me to your list.
Thanks. =)
Done.
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