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Good for you! I was one of 6 other bankers that decided to start our own bank around 1996. Hard work but rewarding. We got an offer we couldn't refuse in 2007 and sold to a larger bank.
We had the timing juuuuuust right!
No Kidding! Skipped the crisis, Dodd Frank, Lizzie Warren and all the other morons that have legislated community banks out of existence. Good for you.
No Kidding! Skipped the crisis, Dodd Frank, Lizzie Warren and all the other morons that have legislated community banks out of existence. Good for you.
Yup- that's about the size of it. The writing was on the wall, the offer came in and it was unbelievable at that time- 67% premium or 2.7x book value. Needless to say I cashed in my chips moved from the east coast to Montana and I'm taking it easy doing some small business consulting for the foreseeable future.
And I'm turning down every bank job offer I get, lol.
Oil jumped 5% today but my portfolio held pretty much steady. All the gains were eaten up by the depreciation of the USD (I'm in Canada) and a rise in long bond yields. Damn. But I like that effect when it's the other way around. I currently have $20K in energy stocks, plus $2K in NORW because the Kronor is so low.
Did you just say the economy was solid right now? This economy is horrible with no real foundation underneath it.
"Horrible"??? ... LOL
You must be a regular viewer of Fox News...
You do realize that the economy added nearly 300,000 private-sector jobs last month ... and more than 2.6 million jobs last year ... right?
And the unemployment rate is a low 5%.
Also, the Fed felt confident enough about the economy that they raised the federal funds rate last month for the first time in nearly a decade. And from their latest policy statement last month, they believe economic activity will continue to expand this year...
This is a complete and utter LIE, with absolutely no reporting to back this up. Long Term CDs of over 5 years have always beat inflation, it wasn't even CLOSE. That's not my opinion, that's FACT, look it up.
The truth of the matter, is that over the next 20 years, the only way the Stock market is going to "rally" is through continual Central Banking influence. Period. But it will come a point when the Central Bank can't do anything else, the air will come out of the balloon, then your over-valued "pieces of paper" will fall flat.
Predictions cannot be a lie, by definition. I expect that in the future, FDIC deposits will more or less track inflation. The inflation scare in the 1970s pushed interest rates very high, and they remained stubbornly high long after inflation subsided. People became accustomed to high real returns from FDIC deposits and also Tbills. I very much doubt we will see a return to that situation.
With respect to stocks, one needs to understand that the underlying businesses are what matters. If the company is profitable and growing, the dividends and the shares will follow in suit. If the company falters then so will the shares. Quit obsessing over the Federal Reserve. The DJIA sits at a p/e of 15 today. If their goal is to create a market bubble, they have certainly been a miserable failure!
This logic is faulty. I've pointed out to others on this board in the past that IF you fail to put a certain amount in your retirement fund in general, you won't have enough to retire on. We are arguing between 3% CAGR and 5% CAGR, but if the guy only put $5,000 in either fund, he's not retiring on that. You have to save a significant amount in general to have something to "grow".
Which doesn't show any fault in the logic, since over long periods of time (as in saving for retirement) the difference in gains is significant, so you pick your poison work longer to accumulate more or take a lower withdrawal rate.
Quote:
Originally Posted by jotucker99
In terms of having a comfortable retirement, that depends mainly on how HIGH your income was during the working years, how you managed your expenses, and how much you put away for retirement for compound growth.
It depends on two things: how much you saved and how much you spend.
Quote:
Originally Posted by jotucker99
I didn't know that 2.3% per year (current 5 year CD rates) were just "barely" beating inflation at 0.7%? That's just barely beating it? Tell you what, over $2 trillion was just wiped out of the stock market, those people are in NEGATIVE territory, what type of "growth" is that? How the hell are you "growing" your investments when they are losing?
Inflation has averaged 0.7% over time? I don't think so.
Wiped out? Do you really think everyone in the stock market just dumped all their cash into it in late 2015? That is who would be in negative territory, do you know many people saving for retirement who did that?
Quote:
Originally Posted by jotucker99
Let's say the Balanced Fund averages 5%, that grows to $432,000 in 30
I can forecast how much income I'm going to get off my CDs, you guys have not a clue what you are going to make (if you make anything) with your Balanced Funds.
You don't know how much inflation erosion will eat your returns, and I do know that historically a balanced fund has easily outperformed cash over long enough periods.
Did you just say the economy was solid right now? This economy is horrible with no real foundation underneath it.
It's not false? If you don't save enough for retirement in general, it doesn't matter if your CAGR was 10%, you still won't have enough money to survive. Lol, how is this even up for debate?
I personally believe everybody should strive to make an income high enough so they can contribute at least $250,000 into a retirement fund over 30 years, which should break down as $9k starting with $8k contributed every year. Taking my ultra safe conservative way at 2.5% CD average gets you close to $400k in 30 years, going with a Balanced Fund at let's say 5% get you $600k.
It starts with $250,000 in my opinion and putting away at least $8,000 per year. But the reality is that probably only 20% - 30% of Americans can afford to do this on an annual basis.
There are 30 year CDs you can buy from a Broker, those are about 3.25% right now, some are about 3%, same FDIC insurance just make sure you buy the right type of CDs that are available in the selection.
Choose banks that are stable for one, two, it wouldn't take that long to get your money returned to you by the FDIC in the case of a bank closure.
I did forecast inflation, I said that there's never been a time when inflation was higher than the 5 Year CDs. Personally, I manage inflation by only buying 5 year CDs, usually the market operates in cycles and inflation would usually remain about the same over the course of a 3 - 6 year period. 5 Year CDs are great for this and right now you can find some that range from 2.2% - 2.45%, while inflation right now is 0.7% from December and the Stock Market is in negative losses.
Am I correct in assuming that you have some decent kind of defined benefit pension plan in addition to your retirement fund? If so, investing in CDs only will give you nice supplemental payments in retirement. But thats about all. $400k is certainly not much of a retirement fund in itself.
none better except for his other two buddy's who preach the world is ending and we should all be in cd's .
hogwash and nonsense . it is a losing deal over the long term and a good way of missing your retirement goals .
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