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What to do
Old 10-07-2008, 02:29 PM   #1
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What to do

In these times of economic upheaval i'm wondering if i'm doing everything right or if there is something i should be doing.
I have no debts,get a $2000 per month company pension,rent is $500 per month,have $500,000 in guaranteed investment certificates(GIC's)they might be called something else in the US.Should i just remain on course or is there something else i could do to maximize my potential?:confused:
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Old 10-07-2008, 03:15 PM   #2
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Yeah, I want to know too. I have "savings" from my inheritance last year, but I'm scared to see how much my parents' hard earned money is left! However, I still have about $140K in VG MM. Any suggestions on whether to invest or to wait? I'm going through denial right now, so I won't look at my balances.
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Old 10-07-2008, 03:24 PM   #3
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Should i just remain on course or is there something else i could do to maximize my potential?:confused:
That depends, do you guys have Amway up there?
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Old 10-07-2008, 06:35 PM   #4
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Yeah, I want to know too. I have "savings" from my inheritance last year, but I'm scared to see how much my parents' hard earned money is left! However, I still have about $140K in VG MM. Any suggestions on whether to invest or to wait? I'm going through denial right now, so I won't look at my balances.
Everyone has to decide on their own risk tolerance, but I have moved from a 60% equity allocation to 75% as of today. I retired earlier this year and have a pension that covers my basic needs, so I am willing to assume more risk. If the market continues to drop, I plan to go up to 85% equities. This time could be different but I don't think so, and I'm placing my bet.
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Old 10-07-2008, 06:49 PM   #5
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Everyone has to decide on their own risk tolerance, but I have moved from a 60% equity allocation to 75% as of today. I retired earlier this year and have a pension that covers my basic needs, so I am willing to assume more risk. If the market continues to drop, I plan to go up to 85% equities. This time could be different but I don't think so, and I'm placing my bet.
People have become rich with your thinking. My problem is...... I have no pension. I can't place your bet.
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Old 10-07-2008, 07:05 PM   #6
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People have become rich with your thinking. My problem is...... I have no pension. I can't place your bet.
Yup! I am kind of tired of the posts that says that they have pensions that cover their needs and that they are oblivious to the recent market decline.

Good for them!!
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Old 10-07-2008, 09:43 PM   #7
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Everyone has to decide on their own risk tolerance, but I have moved from a 60% equity allocation to 75% as of today. I retired earlier this year and have a pension that covers my basic needs, so I am willing to assume more risk. If the market continues to drop, I plan to go up to 85% equities. This time could be different but I don't think so, and I'm placing my bet.
What happens if your pension fund goes bust?
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Old 10-07-2008, 10:45 PM   #8
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Originally Posted by jambo101 View Post
In these times of economic upheaval i'm wondering if i'm doing everything right or if there is something i should be doing.
I have no debts,get a $2000 per month company pension,rent is $500 per month,have $500,000 in guaranteed investment certificates(GIC's)they might be called something else in the US.Should i just remain on course or is there something else i could do to maximize my potential?:confused:
Having no debt is a great step. I don't know much about GICs, but assume they are similar to CDs...stable value, minimal/no growth. If that's all your savings, I'd be moving some into equities. IMO everyone needs some equities for the long term to keep up with inflation. How much depends on your risk tolerance, age, and other factors.

Dave
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Old 10-08-2008, 08:16 AM   #9
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Yup! I am kind of tired of the posts that says that they have pensions that cover their needs and that they are oblivious to the recent market decline.

Good for them!!
Not exactly what I said -- the pension covers my very basic monthly expenses but for a good life I need to spend from the investments as well. I am far from oblivious to the recent market decline since I am down quite significantly at this point. I would think that anyone with a planned asset allocation would be shifting funds to equities when they decline significantly. Using the pension as part of my fixed allocation, I tend to invest a higher percentage in equities.
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Old 10-08-2008, 08:29 AM   #10
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I have no debts,get a $2000 per month company pension,rent is $500 per month,have $500,000 in guaranteed investment certificates(GIC's)they might be called something else in the US.
i had a GIC for 1 year. but the interest paid was taxed at 28% income tax bracket (at the time) and also did not keep up with inflation. i terminated it without penalties and invested it into VG funds. not regretting my decision in spite of recent market performance.
good for you for being debt free!!!
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Old 10-08-2008, 08:35 AM   #11
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Originally Posted by Lakedog View Post
Everyone has to decide on their own risk tolerance, but I have moved from a 60% equity allocation to 75% as of today. I retired earlier this year and have a pension that covers my basic needs, so I am willing to assume more risk. If the market continues to drop, I plan to go up to 85% equities. This time could be different but I don't think so, and I'm placing my bet.
Part of me wants to really crank up withholding for my 401K, but part of me wants to accumulate as much liquid cash as possible right now. 'Tis a dilemma.

Then again, I can't accept as much risk because I expect my personal retirement savings to be almost all I have in retirement -- which makes me wonder if there will *be* a retirement. If I had an income stream to meet baseline needs apart from it, yeah, I'd be taking a LOT more risk now.
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