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Old 01-18-2016, 07:25 PM
 
Location: Sierra Nevada Land, CA
8,410 posts, read 9,160,010 times
Reputation: 13125

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Having all of our eggs in 2.4% CDs has made a lot of sense for 2015 and for 2016 thus far. No fees and there is the FDIC insurance.

Got burned big time in 2008. Will return to the market when things look stable for the long term. 2.4% has beat inflation and the peace of mind is priceless. It helps that our retirement income has nothing to with our reserve.

Last edited by Mr5150; 01-18-2016 at 07:43 PM..
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Old 01-18-2016, 08:06 PM
 
343 posts, read 426,883 times
Reputation: 404
Quote:
Originally Posted by V8 Vega View Post
I took a big loss in the market drop in 2007 2008. Later I got a financial advisor as protection. He is redicously expensive but I figure as long as I'm ahead after his fee I'm doing better than I would otherwise. Right now though he isen't doing too good.
Finance is the art of moving money around until there isn't any left. Forget whose quote that is, but it's useful to remember.

I think all that generation who grew up in the depression have a different view, they've seen the gaping holes that one can fall through.

To the OP, you've taken the first step in recognising the roots of your situation. A problem well stated is a problem half solved, or something like that. Step back a bit and look at yourself in this situation, you know now what you wish you'd known then, how would you help that you that's confronting this? What advice would you give him?

G'luck at it.
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Old 01-18-2016, 08:19 PM
 
Location: ☀️ SWFL ⛱ 🌴
2,441 posts, read 1,677,570 times
Reputation: 8726
Cars were the bane of our existence when we started out as a young married couple. We had a car that got stuck in first gear, one with a distributor cap that cracked every time it rained and the worst one had us sitting on the kitchen floor at midnight rebuilding a carburetor with a kit and praying it was the fix to get us both to work the next day. Those were the standouts among all the other looser cars we had. We didn't have the money to buy decent cars and that experience affected me deeply since walkability wasn't an option at that point.

The result was as soon as we were able, we bought new cars for me and traded whenever the warranty ran out. We put money down and took out a loan. Screw financial prudence, I didn't care, I just wanted a car that ran and wouldn't strand me anywhere, kept me out of independent car garages or trying to fix them ourselves.

My current car is eight years old. Being retired, the need for total reliability isn't a priority anymore. It's taken me this long to be free of that fear. I think using the word scarred is appropriate, because those early experiences left their marks on me.

Last edited by jean_ji; 01-18-2016 at 08:43 PM..
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Old 01-18-2016, 10:11 PM
 
1,734 posts, read 1,952,024 times
Reputation: 3901
Quote:
Originally Posted by jrkliny View Post
I spent most of my working life constantly worried about money and job security. I had plenty of good reasons. After my Vietnam service, I moved to Cleveland so my wife could complete her last semester of college. Unemployment was in the 20% range and it was extremely difficult to find a job. I am still scarred by that experience and have no sympathy for anyone who complains that it is difficult to find a job in the current economy. I then went to graduate school and as that came to an end I spent 6 months looking for a job. I thought I was going into a great field but everything changed when the government instituted DRGs. Well I did get a job and we moved to Arkansas. Both the job and location were disappointing and on top of that I was working on contract for the Federal government and the government announced they wanted another bidder for the contract. So I immediately started looking again. Within a year, I was working in Kansas City. Sure enough 6 months in the cut backs started due to threatened bankruptcy. Within a year I was working for a great company and training in California. To make a long story shorter, that company transferred me to Chicago and then was sold and closed down. I was fired from my next job in Phoenix due to politics and a change in management. Next job in NY lasted several years until the company was sold and the facility closed. Fortunately I was able to work at my last job for 12 years and then retire.
OMG, what a nightmare! I empathize.


I have been fleeing areas that have descended into recessions my entire life, it seems. They started their precipitous downward slide within five years of my digging in and getting really good at whatever I was doing. I've got an almost unbroken track record! Upstate New York. The oil patch in the 80s. CT beginning in the 90s. CT actually never got out of the early 90s recession, and it's just been going downhill ever since.


I finally slapped the gauntlet on the table and came to Metro DC - if there is ANYWHERE in a country that you can count on good jobs, it should be in its capital region. Thankfully, that truism was borne out. Been here almost ten years now, and I am getting the ol' homestretch feeling. Like jrkliny, I'm looking to hang it up in another two.


I THOUGHT I'd want to dig in longer, and hit it out of the ball park. However, the vision of tooling around in a Road Trek on the Grand National Parks Tour, complete with a good dawg, is just compelling as all get out. So if I have my druthers, I druther do that, lol!


What has dodging recessions taught me? Rather, what financial scars has it inflicted that will affect me forever...


Fleeing recessions has left me with a fine edge of hypervigilance. I can virtually smell the tension in the air and sense people hunkering down in the supermarket lines, before the stats hit the news. I will bet my bottom dollar on the accuracy of my nose. In the past, I would never buy property (or rent an apartment) that I couldn't carry on unemployment insurance. I attained good instincts about how to read the employment prospects very quickly, anywhere. If the gut said that this was not a good place, I developed enough toughness to ditch it and move to Plan B. Or Plan C. In retirement, assuming I am fixed in a place, I will make sure that I set up to rent out a room fast, should it become necessary.


As advised on C-D, I will be mindful to have plans A, B and C in place so that I can cover my nut with independent income streams. It has left me profoundly grateful for the fact that I enjoy reading and walking my dawg, and that my kids like me, now that they are of the age of reason.
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Old 01-18-2016, 11:32 PM
 
6,312 posts, read 4,757,627 times
Reputation: 12955
Quote:
Originally Posted by jane_sm1th73 View Post
......

I THOUGHT I'd want to dig in longer, and hit it out of the ball park. However, the vision of tooling around in a Road Trek on the Grand National Parks Tour, complete with a good dawg, is just compelling as all get out. So if I have my druthers, I druther do that, lol!


...........

Compelling and fun and great for feeling alive.


You can also live really inexpensively on the road. Get a solar panel and or good batteries so that you do not need electrical hookups. While driving you can stop at Walmart parking lots. When at your destination areas, there are low cost national forest campgrounds and even the national park campgrounds are pretty cheap with a senior pass.
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Old 01-19-2016, 12:56 AM
 
26,151 posts, read 28,548,775 times
Reputation: 24868
Quote:
Originally Posted by Mr5150 View Post
Will return to the market when things look stable for the long term.
If you're waiting until things look stable, you'll never invest in the stock market. Or, alternatively, you'll tend to invest in the market when it's nearing a top right before it falls down again. That's typically what happens.
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Old 01-19-2016, 01:37 AM
 
6,353 posts, read 5,170,148 times
Reputation: 8528
Mine isn't all that bad and isn't a scar but it is an event worth mentioning.

Going into the crash of 2008, my savings were almost entirely in cash and TIPS bonds because I thought the stock market was too risky. After the market did in fact crash, I thought I had found the formula for asset allocation - don't buy stocks! - and when the recovery came, I was totally unprepared. I never really got back in the market. (I have a little bit in equities.)

So, over 2009-2015, my friends and colleagues who have been about as successful as I am saw their net worth rocket past $3 million...$5 million...sometimes more. I can't complain about my own nest egg, but I have definitely fallen behind people I regard as peers.
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Old 01-19-2016, 05:25 AM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,950,422 times
Reputation: 6717
Quote:
Originally Posted by jean_ji View Post
Cars were the bane of our existence when we started out as a young married couple. We had a car that got stuck in first gear, one with a distributor cap that cracked every time it rained and the worst one had us sitting on the kitchen floor at midnight rebuilding a carburetor with a kit and praying it was the fix to get us both to work the next day. Those were the standouts among all the other looser cars we had. We didn't have the money to buy decent cars and that experience affected me deeply since walkability wasn't an option at that point.

The result was as soon as we were able, we bought new cars for me and traded whenever the warranty ran out. We put money down and took out a loan. Screw financial prudence, I didn't care, I just wanted a car that ran and wouldn't strand me anywhere, kept me out of independent car garages or trying to fix them ourselves.

My current car is eight years old. Being retired, the need for total reliability isn't a priority anymore. It's taken me this long to be free of that fear. I think using the word scarred is appropriate, because those early experiences left their marks on me.
We're lucky that cars are built so much better/are more dependable these days. And they last/run so much longer than the old ones did. No planned obsolescence. My husband used to work at the Ford assembly plant in Mahwah NJ during summers off from school. No scars - just plenty of funny stories. You sure didn't want to buy any car that he had anything to do with! Robyn
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Old 01-19-2016, 05:39 AM
 
Location: Central IL
15,253 posts, read 8,560,668 times
Reputation: 35693
Quote:
Originally Posted by Mr5150 View Post
Having all of our eggs in 2.4% CDs has made a lot of sense for 2015 and for 2016 thus far. No fees and there is the FDIC insurance.

Got burned big time in 2008. Will return to the market when things look stable for the long term. 2.4% has beat inflation and the peace of mind is priceless. It helps that our retirement income has nothing to with our reserve.
So you've been out of the market completely since 2008? Can I ask what would make you decide things are "stable"?
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Old 01-19-2016, 05:58 AM
 
Location: Washington State
18,635 posts, read 9,625,296 times
Reputation: 15870
The biggest is due to being so poor when I was younger, struggling in early adulthood for many years, and after finally getting financial success, setting up measures to prevent a return to no money.
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