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Old 08-18-2011, 04:03 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,950,422 times
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Quote:
Originally Posted by TuborgP View Post
Depending on the local seniors are paying the same property taxes and not requiring the same level of services and that is good for gov't. Some local govt's give fee/tax advantages to developers of senior communities for that reason. In other communities seniors as indicated in the one link get property tax reductions so it is probably a wash. As has been discussed in the forum before many seniors are enjoying a leisurely life and spending more in doing so. However there overall income is often a lower percentage of their working income so their spending/savings/investing rate is probably lower. As has been discussed before as we are getting older we are cutting back on leisure activities as physical change requires. We are early in the boomer retirement cycle so that is not the factor it will be in 20 years plus. The recently started forum on financial situations has some telling survey information and probably reflects financial changes for many people in retirement. As far as the beach goes I will let that go. The Great Recession has moved the curve of when the Boomer contribution would begin to tail off. Now would be a good time for Robyn to talk about asset growth with fixed incomes moving forward and what that will do to Boomers and ability to add to aggegate demand at the rate anticipated a few years ago.
Fixed income now? I am holdling - buying a bit. Some Washington State GOs a couple of weeks ago. Some 10 year CDs now.

This is a situation I haven't seen before - in almost 40 years of investing - and am still trying to get a decent read on where it goes from here.

FWIW - the best deals I've found this last month or two are in credit card/FF programs. There is more than one way to skin a cat . Fidelity has some really nice promos. Robyn
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Old 08-18-2011, 04:12 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,950,422 times
Reputation: 6717
Quote:
Originally Posted by mathjak107 View Post
i rebalance one a year or when there is a 20-25% spread between the highest and lowest asset classes .since i did it the end of last year TLT the long term treasuries are up about 16% ytd. GLD is up around 20% and VTI my total market fund is down 6.5% ,cash is up .8%.

i rebalance back to 25% in each.
So did you sell treasuries and gold and buy stocks and cash? Robyn
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Old 08-18-2011, 04:32 PM
 
29,812 posts, read 34,900,894 times
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One of the things that is compounding retirement planning for many is not just the financial uncertainty but the lack of governmental policy predictability. The sooner we do something with SS and Medicare the easier it will be for folks to manage their retirement.
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Old 08-18-2011, 04:39 PM
 
71,794 posts, read 71,896,917 times
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Quote:
Originally Posted by Robyn55 View Post
So did you sell treasuries and gold and buy stocks and cash? Robyn
yep rebalanced back to 25%... gold and treasuries are taking off again.


if it gets out of whack by 20-25% again ill take more money out of gold and treasuries and buy more equities as they fall.
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Old 08-18-2011, 04:44 PM
 
71,794 posts, read 71,896,917 times
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Quote:
Originally Posted by Robyn55 View Post
I don't believe the future is a random walk (although it can't be predicted with certainty - the way you can be certain we're not going to have a hard freeze in Florida in August - at least not during my lifetime ). There are always tea leaves - handwriting on the wall - etc. - suggesting the possible range of outcomes and their probabilities.

I do agree about not following gurus (or financial advisers for that matter). But I don't believe in scattering money around various asset classes in the hope that something sticks. I believe in learning about various asset classes and ways to invest in them. As well as learning about taxes (it is often easier to save a dollar in taxes than to make a dollar in the markets).

I believe in learning about one's personal risk tolerance. In fact - the most intelligent thing I've heard in the last few weeks is Gary Kaminsky (CNBC) stating repeatedly that if you can't sleep at night these days - your portfolio is out of line with your risk tolerance (I can understand no one sleeping in 2008 - because it looked like the whole financial world was going to blow up then).

I also believe - like I said - in having a plan. For example - my general plan with bonds is to buy and hold until maturity unless something happens to a particular bond with regard to credit quality. I have never sold a municipal bond. I have sold off corporate bonds over the decades when I saw their credit quality deteriorating. I probably sold my GM bonds 3 years too early - but better that than 2 days too late. My general plan with regard to things like equity and other type asset ETFs is to trade (using technical analysis). Also - I own nothing but fixed income in our taxable accounts (we use the income to live on). I have a lot of fixed income in our IRAs too - but all the non-fixed income assets are there as well. I never want to worry about the tax consequences of buying or selling.

Of course - no plan can be set in stone forever. For example - I have never before considered high dividend stocks. But that is something I am starting to explore now. I started to think about commodities a few years ago - but still don't like the investment options. There is always something new under the sun. And - although most of it is nonsense IMO - some of it isn't. OTOH - this is the retirement forum. And although I am only in my mid-60's - I realize that the older I get - the harder it is to learn about - and understand - new things

Now my plan is for me and my husband (and my father - because I manage his money as well). And everyone else's mileage will of course vary. But - in terms of any plan - know what you're doing - and - more important - why you're doing it. And - if you don't know - this is not a bad time to have at least some cash on the sidelines - and thinking a lot. Robyn
we are certainly in agreement here!
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Old 08-18-2011, 05:05 PM
 
Location: No. Virginia, USA
329 posts, read 477,279 times
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Quote:
Originally Posted by TuborgP View Post
In the recent market carnage did you hold and maintain your portfolio as designed or did you fold and rush to safety?

Hold here!
folded mostly and went to cash. Rode it out in 2008, but this actually looks worse to me. From now on I want the safest most boring portfolio possible.
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Old 08-18-2011, 06:41 PM
 
29,812 posts, read 34,900,894 times
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Quote:
Originally Posted by mathjak107 View Post
yep rebalanced back to 25%... gold and treasuries are taking off again.


if it gets out of whack by 20-25% again ill take more money out of gold and treasuries and buy more equities as they fall.
Interesting update tonight
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Old 08-18-2011, 07:03 PM
 
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yes.. big difference in volatility beween the new fund and the one we sold. phew!
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Old 08-19-2011, 05:59 AM
 
29,812 posts, read 34,900,894 times
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Selling Burns 401(k) Savers Who Dump Stocks, Fidelity Says - Bloomberg

Quote:
U.S. investors who sold equities in their retirement accounts during market volatility in 2008 and 2009 did worse than those who stayed in stocks, Fidelity Investments said.

Participants in 401(k) savings plans who dumped stocks from Oct. 1, 2008, to March 31, 2009, when the Standard & Poor’s 500 Index fell 31 percent, and hadn’t returned to equities as of June 30, 2011, had an average account balance increase of 2 percent, according to the study released today. Those who maintained some equity allocation during that period saw their balances rise 50 percent on average.
Current info release from Fidelity
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Old 08-19-2011, 06:04 AM
 
16,437 posts, read 19,155,288 times
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I bought into it, but, as usual, my timing was off. I was too early and took a beating. Might as well hang in and see what happens. At least it's all no margin, so I can wait it out.
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