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Or by Chicken not making much off of their money. It was and is a great run that a lot of people are missing by following the naysayers. Like anything the trick is getting out at the right time. Hmmmm if you put 100k in at 6,500 in early March and sold today you lost how much? You mean you didn't?
Or by Chicken not making much off of their money. It was and is a great run that a lot of people are missing by following the naysayers. Like anything the trick is getting out at the right time. Hmmmm if you put 100k in at 6,500 in early March and sold today you lost how much? You mean you didn't?
im old school , im not smart enough to time things, for me its time in the market not timing the market!
A little blurb from the article you link
[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.[7]
The BIS, is, without a doubt, the most important, powerful, and secretive financial institution in the world. It’s warnings should not be taken lightly, as it would be the one institution in the world that would be privy to such information more than any other
Your words are wise for those of us still a few years behind you. If we play it to conservative inflation will eat up any gains. How are you planning to play real estate? These are the kinds of questions people need to think about and I am sure that a number of people great thoughts like the ones that have been shared so far.
I have several options. Where I live is outside a major training base for the ARMY and TDY (Temporary Duty) Housing is a real money maker. There are companies that will manage the property and rent them out for a cut of the profits. Condos are the best of them although a house has better residual value. I'm still on the fence there but once I see the first signs of hyper inflation I'll borrow and buy. I did well under Carter
I have several options. Where I live is outside a major training base for the ARMY and TDY (Temporary Duty) Housing is a real money maker. There are companies that will manage the property and rent them out for a cut of the profits. Condos are the best of them although a house has better residual value. I'm still on the fence there but once I see the first signs of hyper inflation I'll borrow and buy. I did well under Carter
Sounds like having rental units in small town with a local college. Would you concur that there are circumstances that allow you to take more risks with investments and new dollars once retired?
I have several options. Where I live is outside a major training base for the ARMY and TDY (Temporary Duty) Housing is a real money maker. There are companies that will manage the property and rent them out for a cut of the profits. Condos are the best of them although a house has better residual value. I'm still on the fence there but once I see the first signs of hyper inflation I'll borrow and buy. I did well under Carter
its funny how things have a way of never working out the same way 2x. remember the first iraq war . we tanked and the markets fell 10% in a few days. the 2nd iraq war markets soared that week.
i got a feeling things will go quite badly for real estate this time with hyper inflation. some inflation is good but hyper inflation could devaste things as no one has any money thats not committed to rising expenses with which to even buy real estate. prices could drop like a rock with lack of buyers and we could be in a situation like now.
as i always remind myself as much as i think i got things figured out there is always something not even on the radar that alters the course of what looked like a given just enough to change the outcome.
Bascially I have not drwn anyhting from my investments since retiri9ng 10 years ago and have been saving some surpisingly> about 5years before I retire by agnet calaled me and we went over waht I wanted and when i was going to retiree. He basically said it was time to go more conservative ;so I didn;t lose much in my investments. So I am happy with that but I really didn't depend on those investments too much anyway and its worked out well.
of course the big question is if your not drawing down your nest egg and in fact its growing by more then inflation why bother taking on anymore risk then you have to. why keep playing the game if you already won ?
if i didnt need my nest egg to live on id buy one big load of cd's and call it a day
one of my favorite low risk investments is the un-traded reit, its a way of being in a real estate partnership without the headaches of owning property.
you buy in at a fixed price and that price holds for the duration of the partnership. i use one called apple hospitality .. mine is closed but they start new ventures every so ofton..
it works like this: the reit opens for new money. when the target amount is reached, mine was a billion dollars the fund is closed..
the fund then buys real estate. ours invests only in extended stay hotels and then gets marrot or hilton to run them and fly their flag and name.
the funds value stays fixed, the days events in the stock market have no bearing on you.
you collect a dividend every month from operating profits. ours started at 8-1/4% but the recession now has us at 7-1/2%..
where can you get 7-1/2% return and sleep at night these days?
that 7-1/2% by the way isnt all taxable, remember this is a real brick and mortar investment not a stock. you get a real depreciation allowance so about 12% isnt taxable of that dividend.
at the end of 7 years if market conditions allow its all sold off and money distributed. anything over your origional fixed price is additional profits that are split. the last one worked out to an average return of 17% a year for 7 years. of course we sold that one at the peak..
so heres the cons:
there is usually a cost to get in of about 6%... but i dont know of any real brick and mortar investments that have no closing costs ,.. even so for the return you get and the no volitility its a small price to pay.
also you get the dividend in ours on the entire amount before the entrance fees.
you must do your homework, there are many really high fee'd ones out there..
they arent very transparent as to whats going on and the scrutiny of the sec.
they are not liquid as far as just selling, there are provisions for selling your shares if you have to as they put them in the dividend re-investment pool in ours but not all have provisions , you should be prepared to stay in full term..
the fixed price isnt guaranteed, although i dont know any that paid less then the fixed price , only more.
these are perfect for my bucket 2 as thats money ill need to eat with in 7 years.
think of these as a bond on steriods. in fact if inflation picks up bonds will get hammered but real estate may go up so this is a way of having a steady bond income and still have inflation protection. unlike tips and inflation proof securities these arent linked to a massaged index that can be manipulated.
anyway its another alternative idea but this is not investment advice, do your own homework on the one you choose.
Last edited by mathjak107; 10-20-2009 at 02:37 AM..
i run 2 portfolios which are then used in a 3 bucket system for keeping me insulated from market swings and always providing years of cash flow.
portfolio 1 consists of a bet on nothing, it makes money in almost any condition. what it dosnt make in bull markets it makes up for in downturns. it has returned over 9% a year long term for over 30 years now, it was even up 5% last year when things were down 40%. the long term treasuries went from being the dog of the day to soaring 28% and gold rose too off setting the stock losses
its:
25% cash
25% total market index fund, i use VTI responds to prosperity and slightly higher inflation
25% long term treasuries , i use TLT responds to recessions and depressions
25% gold bullion fund, i use GLD responds to inflation,prosperity, and uncertainty
rebalance once a year and have a nice life. there is no economic event you arent protected from unless they invent something .
portfolio 2 is a bet on more normal times but is very conservative. its well diversified and runs about 35% equities. the funds were given careful scrutiny to make sure there is little overlap in holdings and industries.
normally you can buy 3 different funds and not even realize they all hold alot of the same stuff.
i use fidelity equity income
fidelity blue chip growth
fidelity low priced stock fund
fidelity strategic real return ( an interesting mix of TIPS, floating rate loans, reits and commodities. its designed for a higher inflation enviornment
fidelity investment grade bond fund
fidelity money market
apple hospitality un-traded reit
thats it folks, i just turn off all the talking heads and rebalance every so ofton. if i have extra cash ill distribute it in each
i subscribe to a newsletter that specializes in knowing fidelity funds so that way im kept on top of what funds currently own, not the 3 month old data available on the internet or when managers are changed or fund objectives change. i want to know this now not months down the road.
Last edited by mathjak107; 10-20-2009 at 03:43 AM..
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