investments

[amazon1]

And you are concurring that I was not trolling? Was I controversial or off-topic? Before interest rates went this low (very recently), many, many retirees were in risk-free CDs. I think this is a worthy topic of discussion.

 

[W2R]

Is having a graduate degree in the field in question and keeping up on a daily basis not an appropriate response to the "educate yourself"?

Many, or I would venture to guess most, of our members have advanced degrees. Having an advanced degree does not mean that one should pooh-pooh advice to educated oneself further on a particular subject, in this case, investing.I am sure that all recommendations to further educate yourself on investing were meant constructively.

A good place to start learning about investing (where I started, anyway) is this book list.

 

[RetiredGypsy]

This is the situation - we've been burnt by the market. He was too invested in stocks and I freaked out when things started going south and we pulled out of the market at about DOW 7,000 and I don't want to go back in. Luckily he got a lot of cash when he was downsized after that. Everything else looks risky too - bonds, municipal bonds, real estate.

This is not the post of someone who wants to discuss much of anything.

 

[FinanceDude]

I think I'm pretty informed. I have an MA in Economics for one thing and read the Times and WSJ daily and have read quite a few current books on the economic situation. Why am I a troll? Not even sure what that is. Perhaps it's good to have someone new on your forum with a slightly different point of view.

If my wife had an MA in economics, I think I would defer to her on the investing front..........women make better investors anyway........

I don't think investing is good now. I'm not sure what the problem is with a little give-and-take on the subject. If you find it uniformative unsubscribe.

Noone is making you invest or not invest. However, many people who bail on the market either at the top or bottom of a market tend to procrastinate about getting back in, and miss out on opportunities.

I think I'm going to stay in FDIC insured bank accounts. Does anyone have any tips on how to find the ones with the best interest and keep track of the accounts? Thanks for the tip above - I'm going to investigate what we have to do to make sure we are set in case of a default.

I would take a look at GIC accounts also. TIAA-Cref and others have these..........

 

[brewer12345]

I think I'm pretty informed. I have an MA in Economics for one thing and read the Times and WSJ daily and have read quite a few current books on the economic situation. Why am I a troll? Not even sure what that is. Perhaps it's good to have someone new on your forum with a slightly different point of view.

I don't think investing is good now. I'm not sure what the problem is with a little give-and-take on the subject. If you find it uniformative unsubscribe.

I think I'm going to stay in FDIC insured bank accounts. Does anyone have any tips on how to find the ones with the best interest and keep track of the accounts? Thanks for the tip above - I'm going to investigate what we have to do to make sure we are set in case of a default.

I would say that your general tone and the volume of hysteria you exude are at odds with most of the economics MAs and PhDs I know, but you know your background best.

As for FDIC insured accounts, you have a bunch of choices. You can find the highest yielding savings accounts out there (I use Capital One). You can build a CD ladder. Or you can plunk everything in 5 year CDs and just surrender early and pay the penalty if rates spike (some posters like Ally for this).

 

[FinanceDude]

And you are concurring that I was not trolling? Was I controversial or off-topic? Before interest rates went this low (very recently), many, many retirees were in risk-free CDs. I think this is a worthy topic of discussion.

You'll never beat inflation in a CD...........

 

[jcgc50]

If you want to consider CD's I would suggest you do your research at someplace like depositaccounts.com I found them to have reliable information and good search tools. I am considering a CD ladder now for cash. Ally Bank rates are not the best but they have a 60 day early withdrawal penalty which is excellent.

Nationwide Bank rates would edge out Ally for a ladder but the longer term has a 180 day early withdrawal penalty. Still not bad.

I share your concern regarding the future of the market. In my view the U.S. did nothing to seriously regulate the big banks and we are now left with a handful that are much too big to fail. In fact they may be too big to save. The Dodd-Frank bill was dead on delivery and despite what you have heard will not rein them in. Given that, it is a question of time when the next bubble bursts and how bad the results will be.

Moreover, had I been invested in equities to the extent that had been recommended over the years I would have had to cancel my early retirement in 2008.

 

[brewer12345]

And here is our shill, right on schedule...

What is next? MMND?

 

[RetiredGypsy]

If you'll accept credit from Nigeria, I'll put $$100,000,000,000 into laddered CDs at your bank right now.

 

[travelover]

Just as a reminder, you can put someone on ignore with two clicks. Left click their screen name, then go to the bottom of the box and click on Add ______ to your ignore list.

 

[brewer12345]

Just as a reminder, you can put someone on ignore with two clicks. Left click their screen name, then go to the bottom of the box and click on Add ______ to your ignore list.

With a troll, where is the fun in that?

 

[ladypatriot]

My husband and I have a decent amount of cash and he's currently out of a job - looking but who knows. This is the situation - we've been burnt by the market. He was too invested in stocks and I freaked out when things started going south and we pulled out of the market at about DOW 7,000 and I don't want to go back in. Luckily he got a lot of cash when he was downsized after that. Everything else looks risky too - bonds, municipal bonds, real estate. If you took our nest egg and divided it by 30 - we probably would have enough to live. Should we invest it or just keep it in cash? I don't trust any financial planners either. I'm worried about inflation too.

A lot of people panicked when the Dow hit 10,000. That's part of the reason why the Dow went to 7000.

What's done is done. If you're not comfortable putting money into securities, then you'll have to consider bonds and cash. Unfortunately, neither one will keep pace with inflation, and inflation seems inevitable - and rather high inflation, too.

I realize you're not interested in stock funds, but there are some low-cost index funds made up of large-cap stocks (Exxon, Walmart, etc.) that provide an dividend income rate comparable to bond rates, and you could enjoy capital appreciation as well. There are some utilities funds that provide income, as well. These are considered the safest way to invest in the stock market, and I recommend that you consider putting even just a small portion of your money into one of these vehicles.

We have two savings accounts holding cash because of insured amount limits. We also have an another account that holds 2 and 3 year CDs.

We have a small - in proportion to our other assets - variable annuity that is our "insurance policy" for our old, old age in the admittedly unlikely event that we outlive our money. If we don't need it, we'll leave it to our kids. (to other members: YES! I said ANNUITY! I know it's nearly a profanity on this forum ). It's a comfort measure.

How much income do you need to generate from your savings? Compare that to how much interest income you'll make from a diversified bond fund.

The numbers will tell you what you need to do.

LadyPatriot

 

[travelover]

With a troll, where is the fun in that?

Sorry, what was I thinking?

 

[easysurfer]

My husband and I have a decent amount of cash and he's currently out of a job - looking but who knows. This is the situation - we've been burnt by the market. He was too invested in stocks and I freaked out when things started going south and we pulled out of the market at about DOW 7,000 and I don't want to go back in. Luckily he got a lot of cash when he was downsized after that. Everything else looks risky too - bonds, municipal bonds, real estate. If you took our nest egg and divided it by 30 - we probably would have enough to live. Should we invest it or just keep it in cash? I don't trust any financial planners either. I'm worried about inflation too.

IMHO,

If you totally risk adverse and have oodles and oodles of cash and can take a big hit and not worry about it, then I don't see anything wrong with just "running out the clock" on your cash.

But that isn't the majority the people here. So, we find ways to take calculated risks knowing that the investment climate isn't perfect. This surely beats handing everything over to a financial advisor or badgering the spouse, as that is ripe for plenty of "I told you so's" one way or another.

 

[carnivalday]

I guess I just have too much faith in America. After 9-11, when the market tanked, I bought bought bought (and felt guilty, thinking I was taking advantage of such bad times, but then rationalized that I was investing in America). When the market dove 2 years ago, I bought bought bought. Ive only been investing for about 10 years, and Im way above what Ive invested. I can't understand people who wait until the market is diving to bail out. Does that make any sense? Has the market ever not returned to normal? Its like shopping, buy when things are on sale. Dont buy retail. I buy only dividend paying stocks, so it really makes no difference if the stock prices drop, as long as the dividend stays Im good.

If you plan on just keeping cash, dividing by 30, and and living on that each year, you can be assured that by the time you are at about year 15, your money won't go anywhere near as far as it will go at year 1. So you are at risk even keeping your money in cash.

 

[jcgc50]

And here is our shill, right on schedule...

What is next? MMND?

Was this directed at me? If so, I joined today after finding some answers to a question I had regarding HSAs. Just another person interested, in my case, in staying retired. I'm not shilling for anyone.

By the way what is MMND?

 

[donheff]

Could it be possible Brewer? Pure chance that a guy with 2 posts joins in with a line like that? Wonders never cease.

 

[HFWR]

Was this directed at me? If so, I joined today after finding some answers to a question I had regarding HSAs. Just another person interested, in my case, in staying retired. I'm not shilling for anyone.

By the way what is MMND?

MMND was an infamous poster from yesteryear...

Btw, welcome.

 

[Keim]

By the way what is MMND?

Millionaire Mommy Next Door-She ran a blog you can still find FWIW. She was much like March. In like a lion, out like a lamb.

 

[jcgc50]

Could it be possible Brewer? Pure chance that a guy with 2 posts joins in with a line like that? Wonders never cease.

Oh, I see. Apparently, when you are new to this forum one should sit back and say nothing for some period of time for fear of being branded a troll. Of course, I am not familiar with the history of the rest of you folks so for all I know this is how you respond to new members.

The problem is that I am not sure what I have said that makes me a troll. Perhaps you could enlighten me so I don't make the mistake again.

 

[brewer12345]

Oh, I see. Apparently, when you are new to this forum one should sit back and say nothing for some period of time for fear of being branded a troll. Of course, I am not familiar with the history of the rest of you folks so for all I know this is how you respond to new members.

The problem is that I am not sure what I have said that makes me a troll. Perhaps you could enlighten me so I don't make the mistake again.

Most legitimate new posters start with a "Hi, I am..." post introducing themselves.

 

[jcgc50]

Most legitimate new posters start with a "Hi, I am..." post introducing themselves.

So that was my error. Thanks. I am a member of numerous forums and had not run into that before.

Well, I retired early in 2008. Started investing in 1984. Maintained the buy and hold plan through all of the bubbles until this last debacle. Didn't totally get out of equities but fortunately got out of most soon enough.

As I said earlier I found this site through researching HSAs. There is a shortage of reliable info on them, at least what I needed to know. Hope what I read here is correct, it sounded credible.

Since this is off topic will wrap it up with that. Hope that is enough. Most of the time I sit back and watch in forums that are new to me. Apparently, should have done that here as well.

You are a tough bunch.

 

[Keim]

You are a tough bunch.

This group can be. We've had lots of folks try to use this forum as advertising for their financial gain. The afore-mentioned MMND comes to mind. A good thread to read when you need a laugh.

 

[calmloki]

So that was my error. Thanks. I am a member of numerous forums and had not run into that before....

You are a tough bunch.

Not so much - you had the misfortune to chime in behind someone who was singing doom, asking for answers, claiming knowledge, pretty much dismissing suggestions.... just unfortunate timing.

 

[Nords]

I think I'm pretty informed. I have an MA in Economics for one thing and read the Times and WSJ daily and have read quite a few current books on the economic situation.

While you may consider yourself informed (and I wouldn't disagree with that opinion) you also appear to be uneducated on the subjects of asset allocation and long-term investing. You asked the question, so don't kvetch about the answers until you've tried them out. You have an opportunity here to educate yourself, but you're continuing to [-]dig a deeper hole[/-] argue about it with the other posters.

Before interest rates went this low (very recently), many, many retirees were in risk-free CDs. I think this is a worthy topic of discussion.

For example, there's your use of the word "risk". Most investors use the word "risk-free" to apply to Treasuries. You may be using it to imply that a CD has zero volatility. But American CDs are generally considered to be insured, and CDs from international banks are not always insured, and not even the FDIC is risk-free.

Maybe you have nothing to lose by abandoning the arguments and reading a book. I'd suggest William Bernstein's "Four Pillars" or the Boglehead's Wiki on asset allocation.