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Old 08-12-2016, 06:52 PM   #121
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I dont even have enough cash to cover my health deductible. But I have a drawer full of 0% access checks they send daily... Cant afford to keep cash laying around when I am busy stealing 6-7% dividends from sleep at night utility preferreds...


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Old 08-12-2016, 07:17 PM   #122
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Originally Posted by Lsbcal View Post
Bonds would work out OK if rate rise is gradual, like 2 increases of 0.25 points per year. Over a few years or duration of bonds.

Happened in 2004 to 2006. On the other hand in 1994 rates went up a lot faster and it was a year of pain. Turn the other way in1995.
Unless the Feds forced by higher than average inflation, I do no think we will see any rase this year.
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Old 08-12-2016, 10:30 PM   #123
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Well, I have slowly been accumulating cash for the past few years - I am sitting on about 70% cash/bonds/stable value funds - I retired in 2013, but I took a contract job overseas.

What I am worrying about is how the world has become mad/crazy. Look around the world, China expansion, ( I currently live in SE Asia) bombing/Killing everywhere. Shooting in the US, bombings in Europe, Mid-East, heck Bombs in Thailand yesterday.
The Market is going UP, while Corp revenues are down, lots of employment if you can live on $10 a hour job that's being created. Government regulation is killing us, more Business are shutting down than being created. How am I suppose to look at Investing rationally in a Irrational and Mad world.
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Old 08-12-2016, 10:51 PM   #124
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Well, I have slowly been accumulating cash for the past few years - I am sitting on about 70% cash/bonds/stable value funds - I retired in 2013, but I took a contract job overseas.

What I am worrying about is how the world has become mad/crazy. Look around the world, China expansion, ( I currently live in SE Asia) bombing/Killing everywhere. Shooting in the US, bombings in Europe, Mid-East, heck Bombs in Thailand yesterday.
The Market is going UP, while Corp revenues are down, lots of employment if you can live on $10 a hour job that's being created. Government regulation is killing us, more Business are shutting down than being created. How am I suppose to look at Investing rationally in a Irrational and Mad world.
I am having the same thoughts.

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Old 08-13-2016, 12:23 AM   #125
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I have about 3 years of withdrawals -half in CD's earning about 2.5% and half in a Credit union getting about 1%. I am debating whether I ought to pay off remainder of mortgage before the ARM adjusts up in about 3 years. It would take about a third of my cash position to do it. Our current rate is pretty low (2.75%) and our state and federal marginal tax rate makes the "cost" of keeping the mortgage come in twice as high as the Credit Union interest earned but not a huge amount on a dollar basis.

I am unsure which way to proceed:

1)Payoff Mortgage Now- "costs" less than carrying mortgage, peace of mind, avoid ARM adjustment in 3 years-- but loss of flexibility if the market crashes or rates jump up.

2) Wait with option to pay off smaller amount in 3 years when the ARM adjusts - flexible in the interim but is costing me a little money now to maintain flexibility.

3)buy a 3 year CD. Which would pretty much equal the "cost" of my mortgage- reduces flexibility but a less so than sinking the money in an illiquid house asset. (Also technically the ARM adjustment will start a few months before the CD term ends...)

You all are smart, what do you think?


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Old 08-13-2016, 07:47 AM   #126
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Well, I have slowly been accumulating cash for the past few years - I am sitting on about 70% cash/bonds/stable value funds - I retired in 2013, but I took a contract job overseas.

What I am worrying about is how the world has become mad/crazy. Look around the world, China expansion, ( I currently live in SE Asia) bombing/Killing everywhere. Shooting in the US, bombings in Europe, Mid-East, heck Bombs in Thailand yesterday.
The Market is going UP, while Corp revenues are down, lots of employment if you can live on $10 a hour job that's being created. Government regulation is killing us, more Business are shutting down than being created. How am I suppose to look at Investing rationally in a Irrational and Mad world.
And in addition to all these problems some have sticky caps keys!
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Old 08-13-2016, 07:56 AM   #127
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Where do you keep $150k of cash (assuming you are keeping 15% of $1MM)? I have a fireproof wall safe....
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Old 08-13-2016, 08:11 AM   #128
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I dont even have enough cash to cover my health deductible. But I have a drawer full of 0% access checks they send daily... Cant afford to keep cash laying around when I am busy stealing 6-7% dividends from sleep at night utility preferreds...


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Ooops.... My cash position is worse than anybody on the forum. Started shuffling money around, raiding from accounts, forgetting to use money to "pay back myself" and instead bought more stock. I just checked last night and I dont even have enough money to make it to the end of the month. Going to have to sell something next week so I can keep the lights on and eat!
Thank God Im single....If I was married to my GF and had to tell her she cant buy anything for a week because I bought too much stock, I wouldnt be able to sit down for a week from the arse chewing I would get.


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Old 08-13-2016, 08:38 AM   #129
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3% and we will be selling our house/downsizing next year so more will be coming in. I figure I will just keep about 3% and invest the rest.


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Old 08-13-2016, 03:01 PM   #130
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Ooops.... My cash position is worse than anybody on the forum. Started shuffling money around, raiding from accounts, forgetting to use money to "pay back myself" and instead bought more stock. I just checked last night and I dont even have enough money to make it to the end of the month. Going to have to sell something next week so I can keep the lights on and eat!
Thank God Im single....If I was married to my GF and had to tell her she cant buy anything for a week because I bought too much stock, I wouldnt be able to sit down for a week from the arse chewing I would get.
Men!! I am speechless. This is why I love being single.

Honestly, I know that marriage has great advantages for many folks but at this stage in life it's sure not my cup of tea.

Can you imagine what a husband's reaction would have been to me making a full price cash offer on my dream house on the spur of the moment, like I did last year? Probably not too good.
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Old 08-13-2016, 03:52 PM   #131
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No problem... your money... he's just going to live in it.
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Old 08-13-2016, 03:57 PM   #132
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No problem... your money... he's just going to live in it.
That's what I love about the way F and I have set up our relationship. We don't mix our money at all and we own separate houses next door to one another. So, I can spend without upsetting him, and vice versa. Sometimes we have to remind ourselves of this and it sure eliminates potential discord. Of course for each couple YMMV and there are many ways to skin a cat, as the saying goes. But anyway, for us this has worked out very nicely.
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Old 08-13-2016, 09:45 PM   #133
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That's what I love about the way F and I have set up our relationship. We don't mix our money at all and we own separate houses next door to one another. So, I can spend without upsetting him, and vice versa. Sometimes we have to remind ourselves of this and it sure eliminates potential discord. Of course for each couple YMMV and there are many ways to skin a cat, as the saying goes. But anyway, for us this has worked out very nicely.


You would love this W2R...Just today, I was over at a friends house while his wife was out shopping with my GF. I asked him how much will she blow today... And he responded like a benevolent person with the generosity of Mother Theresa and said "I GAVE HER $40 to spend so she has some money to spend"... If married I thought it was "Our" money. And he was foolish enough to think that was all she was going to spend because that was all he gave her to spend.
Talked to my GF tonight and she said the wife spent $80 alone just on a purse and put it on a credit card and bought other things too. He really has a thumb on his wife, ha!


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Old 08-13-2016, 11:16 PM   #134
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You would love this W2R...Just today, I was over at a friends house while his wife was out shopping with my GF. I asked him how much will she blow today... And he responded like a benevolent person with the generosity of Mother Theresa and said "I GAVE HER $40 to spend so she has some money to spend"... If married I thought it was "Our" money. And he was foolish enough to think that was all she was going to spend because that was all he gave her to spend.
Talked to my GF tonight and she said the wife spent $80 alone just on a purse and put it on a credit card and bought other things too. He really has a thumb on his wife, ha!
Sound fair to me.

I love that F and I don't have all that complication, though.
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Old 08-14-2016, 12:33 AM   #135
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I have quite a bit in cash and cash-like instruments (CDs, i-Bonds) on hand - 7+ years worth of spending in total, in addition to a sizable house renovation fund. That money is earning just over 2%. That despite the fact that our spending is covered by interests and dividends at the moment.

Meanwhile, our retirement accounts are invested entirely in intermediate term bonds. We don't expect to touch those accounts for at least 17 years and the average bond duration in those accounts is around 5-6 years, so we should have plenty of time to recover from rising interest rates.

Many things make me feel uneasy at the moment (including recent talks about caviar and fancy cognac on this forum...), so I am in no hurry to part with my cash. If I had a pension or regular paycheck, things might be different...
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Old 08-14-2016, 07:51 AM   #136
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Old 08-14-2016, 02:30 PM   #137
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Men!! I am speechless. This is why I love being single.

Honestly, I know that marriage has great advantages for many folks but at this stage in life it's sure not my cup of tea.

Can you imagine what a husband's reaction would have been to me making a full price cash offer on my dream house on the spur of the moment, like I did last year? Probably not too good.
Well..... gee....hopefully if he was your husband you would have talked to him about it before you made the purchase. But then again that is the partnership and communication that goes into a marriage. Kind of thought that was obvious.
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Old 08-14-2016, 02:37 PM   #138
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Not everything is so serious here, MrLoco.. Your missing W2R's point to my post....There wasnt a point...She was just having fun with a post.


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