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do you know what you are even saying ? i own 60% bonds .
but as long as your throwing out a stock market that will never come back which to date never happened . i am throwing out the fact bonds can get eaten by inflation and that has happened .
you are quick to criticize others but don't like when it is done to you as you always think you know better and your scenario's are the correct ones ..
The garbage was in your post, not Mrs. Yellen's speech. Rather than blaming others for your life's issues how about you start to improve your understanding?
Excuse me?
I'm doing fine. The garbage is in the kick-the-can-down-the-road-to-be-dealt-with-by-future-generations policies, in place under the socialist in chief, Mr. Obama. The garbage is our corrupt political system.
Once again, more great postings Robyn. I'll add two more pieces of advice. 1. Live in a small house and 2. Pay off your mortgage early. I'd rather put $500 a month into the markets, than pay the bank for a big house that I don't need. Common freakin' sense!
I haven't had a mortgage for a long time and agree there. But live in what many people here would think is a reasonably large house for 2 people (about 2800 sf under HVAC). It is one of the smaller houses in my neighborhood - and is by far the smallest house when it comes to those my siblings own/have owned in the recent past. Robyn
The garbage is in the kick-the-can-down-the-road-to-be-dealt-with-by-future-generations policies, in place under the socialist in chief, Mr. Obama. The garbage is our corrupt political system.
The "garbage" is neither with the political system nor the Federal Reserve. The garbage is with demographics and unrealistic attitudes throughout the West, regarding standard of living and the relationship between labor and capital.
It is true that our political leadership is by and large feckless and insincere. But were they to have been of finer character, what exactly could they do? Raise Social Security taxes? Maybe, but good luck with that. Healthcare reform? See how that one turned out.
There really aren't any convenient scapegoats, regardless of our party-affiliation or philosophy on economics.
Last edited by ohio_peasant; 03-31-2016 at 04:45 PM..
...What is "the long run"? 10 years? 50 years? If worldwide stock markets essentially just oscillate for decades and decades, making no concerted progress, then I'd argue that we have a worldwide calamity. The crisis would be far deeper than a few stalwart buy-and-holders getting stuck. Pension plans and sovereign wealth funds would collapse...
I honestly see a strong possibility of at least some things like this happening. Whether as a result of low/negative fixed income returns - low oil prices - etc. I mean most pension funds in the US are still operating on the basis of assumed 7% returns. Where are they going to get those?
I am not a run to the hills and put everything under my mattress kind of person - but I keep a fairly close eye on things. And - if I think I should bail in certain areas - I will. I have in the past. Like selling GM corporate bonds. Perhaps prematurely. But well before GM went belly up. Today - I own some Oklahoma City GOs. They are AAA bonds - but Oklahoma City is very oil price dependent. Will keep an eye on those bonds (raised an eyebrow when I read that the schools might have to go to a 4 day a week schedule).
Quote:
This is good advice. But what about the kid who joined a start-up while still a teenager, got vested in stock-options, cashed out just before a pullback, and is now sitting on $15M - at age 27? He went back to grad school, and is now teaching programming at a community college. And he's got 40 years until retirement. Can he possibly earn/save enough going forward, compared to his net worth?
I can't even spell "Fortran", let alone program. But many, many people of my generation are in the position of the aforementioned kid - or were, 20 years ago. This is why I keep reiterating mention of the "sandwich generation" - far too young for retirement, but with enormous ratio of investment portfolio to income. What, besides risky investments, should such people do?
My husband and I were kind of in that position quite a few years ago. After a few big lawyer pay days. With a fair amount of money - millions but not 15 of them. That's when I learned how to invest in municipal bonds. It was a no brainer then. And I think it would be the same no-brainer today with $15 million (which can easily generate $450k/year tax free).
I trade about 15% of our overall portfolio in equities in my IRA. I often make more there than I do with bonds (sometimes not). I kind of like doing it because it forces me to keep in touch with what is going on outside "bond land". I am concerned that my mental acuity about these things and my ability to digest market info will deteriorate from age 70 to 80. OTOH - if I manage to outlive my father - I will have a nice inheritance. Even if I lose some of my marbles . Robyn
P.S. For someone who made a lot of money in tech - I think it would be a no-brainer to invest at least some of that money in promising start-ups. That isn't anything a retired lawyer like me would have access to (or be in any position to evaluate).
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. Robyn
