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Location: Nothing could be finer... I'm in S. Carolina!!
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we shouldn't be in anyway - we need to use the money next year but it was a gift to us (inheritance) and we have just left it in. we need it next year to start a business - we don't know if we'll use it all, we'll probably save some of it. it's about $300k - well about $270 today . it was $400k 2 years ago.
do we need to take our money out and if so, when? do we take it all and put it somewhere safer? our broker and personal finance guy are no help. they just say it's up to us. we need new ones. just wondered if you all had any suggestions for us.
Location: Nothing could be finer... I'm in S. Carolina!!
1,294 posts, read 6,471,502 times
Reputation: 421
i was asking for suggestions kooter. not for an end all be all answer that i will definitely follow. that's what this forum is about....
and besides, when it comes to the stock market you can ask 100 people the same question and get 100 different answers. me merely asking for suggestions is in no way an indication of how we will run our business. yes, we are new to the stock market and business - but you have to start somewhere and you have to ask for opinions of those who have gone before you. that's called smart business.
Well have you lost 130K in two years? If so, I would take it out. Aren't you tired of losing so much money? The markets are so volatile right now and since you want this money next year, you don't have time to ride this out. Riding it out will take a few years.
gosh - didn't even notice i didn't put where... sorry!
it = stock market.
It really depends on your age and investment goals, but generally speaking, I would say leave it where it is (or at least most of it). The market moves in cycles and it makes no sense to take your money out when it's nearing a bottm (of course, it's just my opinion that it's near a bottom).
Historically the biggest market gains are the bounce off the bottoms, so if you take your money out you are likely to miss out on the rebound.
If you're diversified and have a long enough time horizon then you should be fine. Diversification is key; both across sectors, equity and debt, and country...if you're putting all your money in one basket you might as well go to Vegas where you can at least get some free drinks.
Heck, it's probably not a bad time to throw a few more bucks in and average down.
***This is obviously my opinion and not professional advice
hmmm...I just reread that you need some of it next year, that's tricky. I would look at splitting the money up into different time horizons, for example:
Say you have 400k and need to take out 100k a year over the next four years:
put 100k into a CD
100k into AAA bonds
100k into dividend paying bluechips
100k as is
***this was off the top of my head may not be the best approach, but my point is you don't have to view your total net worth as one inseparable sum. You can divy it up into different portions to meet your need over your time horizon.
we shouldn't be in anyway - we need to use the money next year but it was a gift to us (inheritance) and we have just left it in. we need it next year to start a business - we don't know if we'll use it all, we'll probably save some of it. it's about $300k - well about $270 today . it was $400k 2 years ago.
do we need to take our money out and if so, when? do we take it all and put it somewhere safer? our broker and personal finance guy are no help. they just say it's up to us. we need new ones. just wondered if you all had any suggestions for us.
There are no good fundamentals out there that point to any uptick.
The market reacted to the signing of the bailout bill by tanking.
IMHO..it's a greater than 50% chance the markets will tank some more next week. The bill was barely signed when the talking heads were saying that it's not enough.
I don't know if the Fed will pull something out of their hat Sunday night to drive the markets up on Monday..but they need to do something to turn it around.
It's a hard call since you have lost money..it's only on paper til you sell and then it's real.
Do YOU feel the market will turn around anytime soon ? Would you feel better to cut your loses now and then invest in FDIC insured CD's and MM ?
With it being inheritance and potential stratch to start up a business, I would'nt have allowed any of it to be lost. It seemed that you put it in the stocks and left it there without keeping an eye on it.
How can you start up a business when you can't even stop your money filtering away. With this approach to your money, bankruptcy would be the case in years to come.
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. it was $400k 2 years ago. 
