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…and my Real Estate just continues to cruise with zero turbulence.
Such a peaceful ride
I think you've confused real estate investing with buying CDs. Left coast is riding a nice long wave. Call it great location on increasing value combined with 30 years of declining interest rates. Lots of dual employed standard credit borrowers. Low forced sales. No liquidity crisis.
the time to have done that was 4 months ago . now "good investor behavior " is about rebalancing in to stocks not running away . but you have to do what makes you comfortable even if it is bad investor behavior.
I think the stock market will get worse so I actually think moving into bond funds is a wise move even at this late point. I've seen several more big dips since I moved money into bonds. We had another big dip today. I think things will get worse before they improve. Jack Bogle said a rough time is ahead.
Last edited by PriscillaVanilla; 12-28-2018 at 02:59 PM..
I think the stock market will get worse so I actually think moving into bond funds is a wise move even at this late point. I've seen several more big dips since I moved money into bonds.
What "bonds" do you move into? I have tried several bond funds over the years, in my retirement accounts, and not one made a dime. If I consider inflation, they all lost value. I've given up on them.
What "bonds" do you move into? I have tried several bond funds over the years, in my retirement accounts, and not one made a dime. If I consider inflation, they all lost value. I've given up on them.
Have you considered using bond funds to build a passive stream of income rather than looking at it from the "buy-low, sell-high" viewpoint?
As the Fed Funds Rate goes up, bond funds will be replacing the lower-interest bonds that they currently hold with higher-interest bonds being issued. The price of the bond funds will go up therefore, but don't worry about the price. Think of it as building a stream of monthly income that you can live off in retirement.
My passive portfolio paid me over $1,400/month in 2018. (It was only $250/month in 2009.) By the time I retire, I expect to be getting around $2,000/month in passive income from my mix of dividend-paying stocks, bond funds, and REITs which will go along nicely with my pension and SS. And that will be achieved by not selling anything, thus, no need for another stock market runup.
I think you've confused real estate investing with buying CDs. Left coast is riding a nice long wave. Call it great location on increasing value combined with 30 years of declining interest rates. Lots of dual employed standard credit borrowers. Low forced sales. No liquidity crisis.
It's been nice....don't confuse it with forever.
Please don't confuse investing with trading. One can have a portfolio of real estate that provides a passive income stream without having to worry about the price moves.
Traders need a market to keep moving up in price and someone to buy them out at a higher price to make money.
Investors can make money by renting out their property and it does not require a market run up in price or a buyer willing to pay a higher price.
Have you considered using bond funds to build a passive stream of income rather than looking at it from the "buy-low, sell-high" viewpoint?
As the Fed Funds Rate goes up, bond funds will be replacing the lower-interest bonds that they currently hold with higher-interest bonds being issued. The price of the bond funds will go up therefore, but don't worry about the price. Think of it as building a stream of monthly income that you can live off in retirement.
My passive portfolio paid me over $1,400/month in 2018. (It was only $250/month in 2009.) By the time I retire, I expect to be getting around $2,000/month in passive income from my mix of dividend-paying stocks, bond funds, and REITs which will go along nicely with my pension and SS. And that will be achieved by not selling anything, thus, no need for another stock market runup.
I'm not looking at it from a "buy-low, sell-high" viewpoint. Each of these funds were held for several years.
I'm looking at it from a "I would have done better to put the money in a savings account" viewpoint.
I'm not looking at it from a "buy-low, sell-high" viewpoint. Each of these funds were held for several years.
I'm looking at it from a "I would have done better to put the money in a CD" viewpoint.
What kind of monthly income were you getting from the bond funds?
Compare that with the monthly income you would have been getting from a CD with the same initial investment.
You don't have to sell your bond funds at a low price if they are giving monthly income (or quarterly income divided by three). Add up the monthly or quarterly income for the entire year and divide by your initial investment. Is that percentage higher or lower than what the CD would have paid?
My bond funds are paying me between 5% and 8% on an annual basis. Where does one find CDs paying that these days?
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