Retirement

[bobbin]

We continue to invest regularly, that's the whole concept behind "dollar cost averaging", but I have to confess that I do so with more trepidation than confidence these days.  As has been pointed out, the trick is to invest in things you understand and you use.  I never really understood dollar cost averaging until I read Suze Ormand's (sp?) first book, BTW. 

Investing with an eye on your "time horizon" is really important, as Mojo pointed out.  Quite frankly, as the junior member for the household I have more time to see my investments "recover" than does the husband.   If I allow myself to think about it too much I can get pretty freaked out by it all, but we've followed time honored advice and never got sucked into "livin' large" or putting money in vehicles that carried a very high risk. As tempting as it was we never allowed ourselves to get greedy with repsect to high returns.  While the immediate price per share may have taken a tremendous hit in the past 2 yrs., we still own the the same number of shares in quality stocks and believe they will recover.  When everything was going gangbusters the returns we enjoyed were reinvested in more shares.   Most of all, we've not had to raid retirement investments to pay the monthly nut.   I don't believe we will see a return to the highs that made so many behave so recklessly, but historically money invested in the market has returned decent yields.  I see no alternative in liquid savings, at least not at .5-1.5%!

But we have some money invested to produce an income stream and that's taken a hit... the stream is now more of a trickle and it's those monies that we're contemplating removing from the market and putting to work on "projects".  It seems more practical to spend the money than watch it evaporate with no immediate benefit, you know?  The past two weeks have not been fun ones, but we're not completely panicked by them, either.  As I said, I can get pretty jittery about it all, but I think reacting to market swings and economic cycles requires a cool, level head. 

[Rich]

Anyone who subscribes to the "stock market has had it's day in the sun"  theory care to offer any viable alternatives?
Rich

[bobbin]

"... canned goods and shotguns."   ;)

[Peppy]

"... canned goods and shotguns."   ;)

And now we're back to cat food!

[Mike8560]

Me well im %$#*ed :o  when i get old ( wait i am old) its going to be SS a reverse morgage and ill probly do canvas out of my trailor till I cant stitch no more. if i make it that long.

[Mojo]

Anyone who subscribes to the "stock market has had it's day in the sun"  theory care to offer any viable alternatives?
Rich

Real Estate. There are some amazing bargains at the moment in certain areas of the country. That is where I put my money after the last market crash. I just listed one property last week and will probably double my money when sold. I purchased it about 5 years ago. I have another property that I will be listing in another couple months and I expect a decent return on that one as well. Of course we also just bought this property
( a foreclosure home ) at half its value last year.

The housing market will correct itself and come back but the problem is knowing when that time will be. I am thinking probably another 5 years before house prices rebound. Even then they will not come back to pre-recession levels but there is still some good profits to be made.

Oil is another good bet. Prices are down but will not stay that way. The second that our economy starts to grow, oil will rebound..............big time.

I do not think that the stock market is finished in as far as big gains. There are a lot of corporations out there sitting on HUGE cash reserves that are in good financial shape.

The one industry I can tell you stay clear of is airline stocks. I cannot think of anyone who has ever made money over a long period of time on airline stocks ( unless you were holding SWA stock ). Even Southwest is not performing like it used to.

JMHO,

Chris

[Mike8560]

Real Estate. There are some amazing bargains at the moment in certain areas of the country.

thats for sure, you can buy a home on the water down here for as low as 100k  thats why i made my move even taking a 70K on the sale of my last house I couldnt pass it up.

[baileyuph]

An indepth review or study of business cycles sure provides a good or better understanding of the free market.  Nothing goes straight up forever nor does it go straight down forever.  That concept alone explains most of what is happening today.  We are somewhere close or in the bottom of the cycle now, going through a washout or reposition for a new start.  But, equally important in an understanding is it takes time and understanding to make the best of anything,  Not everyone in the market have the same experience, the investor has to be at the right place the right time.  Remember the 90's when the tech stocks were the place to be and at a point the right time to sell?  I sure do.   

I heard a story this week about an old timer who bought stocks in the depression era and has held them until now, he reports a tremendous success story.  Kinds one of the buy low and sell high stories.

So, you guys buying property now, could fall into the same category of success.

If you don't invest in stocks, have all the caned meat and a couple shotguns, then what is next on the investing menu?  There are those with money to invest now who have all the other bases covered, like retirement, home, and etc., so where do they put their money now, invest that is?  CD's are bit low and soon as this economy perks up, inflation will become something to deal with.   

The back yard burial doesn't yield much of anything, does it? ;)   

Doyle

[Rich]

I thought this looked interesting:
http://emsnews.files.wordpress.com/2009/05/us-economic-growth-is-inflation.png?w=500&h=300
Rich