How I Stopped My Assets from dropping...

[slazenger]

What are others doing to combat their asset deflation?

I've been gradually shifting from an approximately 2/3rds position in equities as of about mid 07 to eventually 100% equity. I'm at about 88% now, but if this drop continues a bit more, I'll move to a full 100% equity position.

I'm so excited about these unique opportunities to essentially get 2 for 1 deal on shares. If the ride up was just linear, I wouldn't have these opportunities to enhance return.

 

[freebird5825]

Not one, or any reply that addresses my question! what kind of forum is this anyway? junkcar.com!

yes, we have a collective bad habit of using humor to get through the recent tough times. i will confess to being a major instigator thereof.

everyone is experiencing asset ruination. what can we do about it? not a darn thing except stick to our individual plans and bounce ideas off each other.

there are some very smart people here. relax and go with the flow.

 

[Moemg]

I was thinking of having my assets lifted this year but with the market decline plastic surgery is out . I think I can still afford Botox .

 

[freebird5825]

I was thinking of having my assets lifted this year but with the market decline plastic surgery is out . I think I can still afford Botox .

try rubber bands. it always w*rked with knee socks.

 

[HFWR]

They have Botox for the buttocks?

 

[blanston]

I apoligize-Sorry.

You are right Nords and I am sorry. I was not clear about my question.

If your assets were say, 2 million a year or so back- they are probably anywhere from 10 to 50% lower due to the deflating markets. (real estate and equities).

I have been buying real estate at discount to keep my assets up or close to where they were. I was wondering what others were doing?

I appreciate the responses and i do have a sense of humor too. And a junk car! And, I am not rich dad! I am not selling anything, only buying!

 

[FinanceDude]

Not one, or any reply that addresses my question! what kind of forum is this anyway? junkcar.com!

You mentioned you bought all your RE properties with nothing down, it made you sound like a Carlton Sheets commercial.......

What happens to your plan if the RE market doesn;t recover for a couple years, and you can't get tenants?

 

[FIREd]

So the only reason why your assets haven't dropped is because you are buying deflating assets at a discount? It will prop up your balance sheet for a while but it kinda sound like a short term patch... If real estate prices keep coming down, won't that affect your total asset value at some point? Unless of course you can continue buying assets at discounted prices until the market turns around. And of course, as you build up your RE portfolio, you will need to accelerate your discounted purchases to prevent your ever larger asset base from dropping. How long before you max out your borrowing power and the banks shut you down?

Plus I am always weary of people who claim they can buy assets below market price... Whatever you end up paying for a property IS the market price as far as I am concerned.

But if it works, it will have been a very bold move on your part. Personally I can think of 3 simpler ways to stop my assets from dropping or at least slow down the decline: 1) go all cash. 2) save more. 3) invest in a reverse index fund. I have been doing 2) and 3), still not enough to completely offset the losses though. Quite a few people on this board are doing 1).

 

[Notmuchlonger]

They have Botox for the buttocks?

Ya eat a couple quarts of ice cream a day

 

[Zathras]

First rule I am following is to not take on any more debt.
Second rule is to pay off any debt I currently have (besides my primary mortgage).
Third is to continue to invest a small amount of cash in dividend paying equities. My dividend income continues to rise, so I have no immediate stressors.
Forth, stockpile more cash, so when things get a little more stable I can buy more heavily in the market.
I don't care if I invest at the very bottom or not, I just want to be a little more confident.

 

[calmloki]

So the only reason why your assets haven't dropped is because you are buying deflating assets at a discount? It will prop up your balance sheet for a while but it kinda sound like a short term patch... If real estate prices keep coming down, won't that affect your total asset value at some point? Unless of course you can continue buying assets at discounted prices until the market turns around. And of course, as you build up your RE portfolio, you will need to accelerate your discounted purchases to prevent your ever larger asset base from dropping. How long before you max out your borrowing power and the banks shut you down?

Plus I am always weary of people who claim they can buy assets below market price... Whatever you end up paying for a property IS the market price as far as I am concerned.

But if it works, it will have been a very bold move on your part. Personally I can think of 3 simpler ways to stop my assets from dropping or at least slow down the decline: 1) go all cash. 2) save more. 3) invest in a reverse index fund. I have been doing 2) and 3), still not enough to completely offset the losses though. Quite a few people on this board are doing 1).

If Blanston can buy places for 1/3 of their last sale price in 2006 and rent them for a rent/month that is 1.4% of the purchase price he will do just great. Work will be involved handling the rentals and upkeep, but there is plenty of slack to do maintenance, deal with vacancy, and even >shock< make principal payments. Were i filled with a desire to work harder and presented with similiar deals close to where we live i would jump all over them.

 

[FIREd]

If Blanston can buy places for 1/3 of their last sale price in 2006 and rent them for a rent/month that is 1.4% of the purchase price he will do just great. Work will be involved handling the rentals and upkeep, but there is plenty of slack to do maintenance, deal with vacancy, and even >shock< make principle payments. Were i filled with a desire to work harder and presented with a similiar deals close to where we live i would jump all over them.

The master has spoken! I should have stuck with the Botox discussion... Can Botox really LIFT assets?

 

[freebird5825]

The master has spoken! I should have stuck with the Botox discussion... Can Botox really LIFT assets?

Assets, Botox, rubber bands and ice cream....a new thread, anyone?
DDD!

 

[calmloki]

The master has spoken! I should have stuck with the Botox discussion... Can Botox really LIFT assets?

Oh dang! anything i say should be taken as being my opinion only, subject to being riddled with error and omission, and not necessarily being fact based. That being said, i'm guessing that Botox doesn't really lift assets so much as it smooths out variations - maybe more an anti-cellulite effect. Which makes me wonder if hemorrhoid creme wouldn't have the desired effect. OTOH, maybe it would shrink assets as it does bags under the eyes.

 

[freebird5825]

Oh dang! anything i say should be taken as being my opinion only, subject to being riddled with error and omission, and not necessarily being fact based. That being said, i'm guessing that Botox doesn't really lift assets so much as it smooths out variations - maybe more an anti-cellulite effect. Which makes me wonder if hemorrhoid creme wouldn't have the desired effect. OTOH, maybe it would shrink assets as it does bags under the eyes.

i think wall st needs some hemorrhoid creme, and fast.

 

[blanston]

good questions!

I wood like 2 answer some of your good questions, but dont know how you people highlight the quotes n blue- then address the question?

 

[freebird5825]

I wood like 2 answer some of your good questions, but dont know how you people highlight the quotes n blue- then address the question?

hit the QUOTE button at the lower right of the sub-window for this post.
type below the [\quote] characters.

oh, and be careful which questions you answer. i would avoid the botox and hemorrhoid creme questions for now til you get your sea legs.

 

[blanston]

hit the QUOTE button at the lower right of the sub-window for this post.
type below the [\quote] characters.

oh, and be careful which questions you answer. i would avoid the botox and hemorrhoid creme questions for now til you get your sea legs.

thanks for the warning!

 

[blanston]

Blanston, well done on your asset "protection". Seems like positives all around, how's the rental market where you are? what are the out goings apart form the mortgage payments? .

The rental market is ok-but I believe is getting softer. I have apprrx 20% decline in rents built into my downside scenario.

 

[blanston]

help freebird

I messed up my reply to nun. I cut paste and awswered Nun's question- but the reest of the post was Nun's!!

How do I just take part of a question to be higlighted and post answer??

Maybe I should just go back to real estate investing? It is easier than this!!

 

[freebird5825]

I messed up my reply to nun. I cut paste and awswered Nun's question- but the reest of the post was Nun's!!

How do I just take part of a question to be higlighted and post answer??

Maybe I should just go back to real estate investing? It is easier than this!!

here i am.
just stay outside the [/quote] at beginning and end of the other person's post. KISS method.
we can follow the answers you give...

 

[freebird5825]

The rental market is ok-but I believe is getting softer. I have apprrx 20% decline in rents built into my downside scenario.

I think you'll find most people on this forum invest for the long term and are reasonably well diversified which has made the losses less than they could have been. Many retiree's have cash buckets, CD ladders or other fixed income sources to help them through such a downturn and those of us with a few years to go until retirement should be keeping to our asset allocation plan. Finally low levels of debt and LBYM are qualities of many on this forum which will help them to cope with the current situation.

So that's how I'm protecting my assets, and my peace of mind.

is this the messed up one? if so, reopen your response to his post, not this one, by clicking on Edit. you can Edit for a little while before the post become permanent.

 

[blanston]

everyone is experiencing asset ruination. what can we do about it? not a darn thing except stick to our individual plans and bounce ideas off each other.

there are some very smart people here. relax and go with the flow. [/quote]


You really are high tech Freeby.

I understand that we are all being deflated. fist like a slow leak- more recently like a blow out! But I am doing something about it. There are others too that have implemented some actions.

 

[blanston]

I did it again Freebird!

I will go away. sorry.

 

[Dreamweaver]

I'm trying to take advantage of this market by buying stocks on the cheap. Real estate is also cheap right now, obviously. Not sure where else to put my money to work... anyone know where the next bubble will be? We went through tech stocks and real estate, what's next? I'd like to get in early.