Posted on 10/12/2016 6:49:29 PM PDT by Enlightened1
As one fairly recently retired I ditto your remarks and remember the 1987 crash and the crap during the 1970s. Having said that one must always be ready for a sell-off and either be willing to ride it out or not invest in the first place. I think the only money one invests in the market should be funds you are willing to leave alone for 10 years or more.
I think the hardest thing is not the ups and downs of the market but having the discipline to save enough money to retire. I had to increase my savings rate to 30% in the last 10 years to compensate for money not saved in my first 10 years. If people save 15-20% of their money for 40 years and spread the money across a balanced mix of assets they should be in pretty good shape.
One basic model to determine stock prices, Dividends/interest rate or earnings/interest rate. The interest rate on say one year government bonds is very low. So as interest rates fall stock prices go up. (This is a very broad observation and lots of exceptions. One outcome of the Obama Fed is that interest rates on government bonds and CD’s are very very low, which has destroyed any incentives for the middle class to save. To earn higher returns many have invested in the stock market-a bubble to be sure. When interest rates go up the value of many common stocks will go down quite a bit.
The central planners will wage all out war. If economic war doesn’t work they’ll take it hot.
A Republican was elected President.
Is anyone who is even barely awake sees this coming.
I am thinking with no ammo left for the Fed that this might be a bit worse than most are projecting.
Wow. That was really helpful. Thanks.
Must have been a little tough the past ten putting 30 percent away. Glad you could do it.
I DO panic a little :) thinking “if i move to gold now or whatever, i’ll make money while the dow goes down!!”
but that’s dreaming. It is VERY hard to do.
I guess you just have to let it go into the 401k and KNOW what you’re in, but leave it alone for the long haul.
Wife and I are both 48, no kids (that sucks but thank God i have so many nephews and nieces) and we will be ok although we dont have a fortune saved now because i recovered from injury for eight years but we are back on track.
As for SS, i wish we could put the money in private accounts but then they wouldn’t be able to steal it, the govt that is.
Could it really disappear one day?
How are China and Japan staying afloat at 250 debt to gdp?!?!
Over the past 100+ yrs, stocks have returned about 9% per year when you include dividends. The key is to invest regularly over the course of your working years and ignore the ups and downs. Here’s a neat calculator that shows the return on stocks, with data reaching back to the late 1800s => https://www.measuringworth.com/DJIA_SP_NASDAQ/
Broken clock syndrome. Pay attention to the fed. We don’t have a stock market anymore. We have a central bank controlled asset management program.
I’ve converted my bill payment process. I’m running all purchases through my cash back card and I’m getting some great returns on my $1000 per month I run through there.
I’ve got a project I’m running through there, and I may make about 50% interest this year on that $1000.
The thousand is money I took from checking and savings, and simply replaces everything I was paying from my checking account.
I’ll get anywhere fro $300 to $500 dollars from cash back, dumping my month’s bill money in just before the cycle date lowing the interest charged, and also taking advantage of special offers that I would have spent anyway.
For instance, I paid Hulu one month, and got it free for a perk the card company was offering.
Beats leaving the money in check and savings where I gain no interest at all.
Thanks for the thoughts. I am also worried that Obama and the Fed have been pumping the stock market up. That may be off track, but it sure seems like it.
By landslides. The stocks broke through the psychological barrier of 1,000, then wafted back and forth. It wasn’t until the mid-80s where there was a clear upward trend.
Savings account is a no brainer, it loses money.
Checking account just prior to paying expenses, and some loose cash.
So the question begs, where does one park money when one "puts it away"?One does have to be ready to liquidate at the drop of a hat, perhaps a loss/sell trailer on all buys.
Even matrass cash loses value at the rate of inflation.
RE is where I have been parking it, and getting damn good returns.
I have come to learn that the powers that be can kick this can much further down the road than most could ever imagine. We still have a long way to go IMO.
Obama and the Fed are keeping interest rates low in order
to keep interest payments on 18 trillion dollars of debt low.
As a result a stock market boom that may turn down quickly if interest rates go up.
Excellent. In some markets that’s a good idea. At the wrong time, that can go flat too.
I don’t think California land has rebounded after the 2008 fiasco. Others may be more informed that me on that though.
That makes sense. I’m hopeful that Trump will increase the tax base and increase government receipts because of it.
If he can, he’ll pay down part of the debt. That would really help.
I’d love to see Welfare sunseted in 36 months.
That’s half a trillion right there.
Cut them off. Save half a trillion, they have to work to eat, and that increased our tax revenues as well.
We could be talking $600-700 billion right there.
wow thanks
I’m not worried.
I have Hellary’s commodities trader as my financial advisor.
BTW, the election is still an E ticket, no?
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