Dilemma of our times

[scottw]

Originally Posted by Footbag

When you say the minimum the companies will match, do you mean the maximum?

If your companies will match above that 5%, and you are not considering retiring within the next 5-10 years, then I would still attempt to contribute more to the 401K rather then your mortgage. (That's assuming you have a typical mortgage rate, not a very high one)

You should also be able to re-position your 401K to take a little bit less risk if you are uncomfortable.

I agree, there are still some balanced funds or some investing more in treasuries that you can still do OK with. Last week, I flipped a fund
heavily invested in International stocks for my father. We went into a couple of bond funds and when the market tanked 778 points, he actually made $500.

[Blueface]

Originally Posted by Freight Train

My money is going toward GOLD.

That is what they suggested today on a program I was watching.
What a bitch to lug that stuff around or hide it.

[ttours]

Carlos,

Short and simple, you need to be liquid with government insurance or in muni bonds or securities. ST CD's where you can easily move your money. The most important thing is you have to be able to "GET TO YOUR MONEY". In the event that lending and mortgage institutions cannot access cash you cant access your money. No interest or 1-2% beat the heck out of sorry you cannot access your money currently.

Stay liquid. Where you are not building wealth you are not losing wealth. From the first depression the ones that survived had access to cash.

tt

[Footbag]

Gold is a good investment, and a good addition to any portfolio, but I wouldn't go too heavy. In the 70's gold spiked at $800~ but then returned to $350-$450~. I also like rare coins as you see from my signature. Not as heavy as gold bullion, and a bit more fun IMO.

[Papichulo]

Originally Posted by Footbag

Gold is a good investment, and a good addition to any portfolio, but I wouldn't go too heavy. In the 70's gold spiked at $800~ but then returned to $350-$450~. I also like rare coins as you see from my signature. Not as heavy as gold bullion, and a bit more fun IMO.

that is a nice coin

[M1903A1]

Originally Posted by ttours

Carlos,

Short and simple, you need to be liquid with government insurance or in muni bonds or securities. ST CD's where you can easily move your money. The most important thing is you have to be able to "GET TO YOUR MONEY". In the event that lending and mortgage institutions cannot access cash you cant access your money. No interest or 1-2% beat the heck out of sorry you cannot access your money currently.

Stay liquid. Where you are not building wealth you are not losing wealth. From the first depression the ones that survived had access to cash.

tt

I have to agree (as one who holds a finance degree and has yet to really use it!).

Regarding gold, it may be good in the short term (like a couple of years), but what happens if this situation goes on longer than anyone expects and people start unloading gold holdings onto the market to raise cash? The value of gold will go down. And remember, unlike the Depression years, there's no fixed price at which the government will purchase gold, so there's nothing out there to keep it from dropping. Possibly people will hold onto their gold holdings as long as possible, because they think it's their most sturdy asset, but push people hard enough and they will unload it for cash too.

Very few people are alive today who can remember "bad" times lasting beyond two or maybe three years, or knowing what REALLY bad times are like.

[fauto]

Originally Posted by Freight Train

Great topic. I think that the values of the majority of items we buy are inflated. Most of this is due to the fact that people purchase most things on credit instead of cash. I am changing my investments also. I think that the market is way to emotional right now. My money is going toward GOLD.

Gold and Silver. Only buy what you can hold in your hand no paper!

[stfoley]

I'm 100% debt-free, so I'm just riding it out and seeing where it goes.

I have a significant amount invested in GE, so I'm hoping they come out of this gracefully. Same for the Silver market.

Gold is the go-to for an uncertain market....silver is more industrial in nature than it is a popular inflation hedge/barter tool for the apocalypse anymore.

That said, silver has taken a reaming this last week.

BTW, I do hold lots of metal...it's in a burglary safe...accept no less if you are storing metals. It's worth dropping $700 on a safe if you have a few grand or more in metals inside of it.

[floydpink]

Personally, I am not too freaked out, just cautious about my discretionary spending, although I don't consider a vacation every 3 months as discretionary, more necessary for my sanity. I may limit my international travel and stay closer to home or crash at Carlos' if he'll let me.

I still contribute 10% to my 401k figuring I won't be retiring anytime soon and my fund is very conservative. I did back off my company stock purchases.

Also, I have paid 6 months advance on my mortgage and paid off my credit cards and am stockpiling an emergency fund just in case/

I tend to think we are near the bottom of this drop, but may be too optimistic.

A lifelong friend of mine is a stockbroker who did well for me years ago and still asks me to send money. I have begun deleting all emails from him.....

[RockEStone]

In my opinion, if you have 5 years or more before retirement, I would leave my money in the 401 k and keep contributing as normal. You are getting a lot more bang for you buck right now. I truely believe that we live in the greatest country in the world and that's based on freedom. To include the free market. What we are undergoing is an adjustment that was well past due. Everything was overpriced and the market is now fixing this pricing problem. The government, in my opinion, should get out of the way. That silly little bill that was full of pork will do nothing but make things worse in the long run.

[Footbag]

For those who are considering gold, I just want to show why I would have reluctance to go very heavy...


As you can see from this chart, gold is currently very high. As a hedge against worse times, it can be a very good investment. The most difficult thing, is identifying when to sell it. My father has been buying gold since the 70's and he recently sold nearly all of it. He took a very nice profit. But, I wouldn't expect it to continue rising for more then 3 years unless there is a complete breakdown in the markets.
I saw the markets showing strength at 8200 which was a very good sign. I personally think there is considerably more upwards potential in the market as opposed to gold.
In conclusion, I'm not going to try to to talk you out of buying gold, in fact if fit's into any mix well; but don't forget you have to sell it when it's higher. It's fairly stable also, so if it drops back down to $450, it may stay there a while.
I should also add that in the last year, a lot of people have been selling their old scrap gold from jewelry and other things. This may cause a bit of reluctance in the upwards trend. I've heard from a few jeweler friends that a lot of gold has recently come back into the market. He refuses to hold anything that isn't retailable.

[Footbag]

Originally Posted by Papichulo

that is a nice coin

The 1776 Continental Dollar. Commissioned be the Continental Congress and designed by Benjamin Franklin to celebrate the founding of our country. It was most commonly made from Pewter because our country was broke at the time; but under 5 examples of brass and silver exist. IMO, this was our nations finest coin design. I would love to see an official commemorative release, but I'll wait until 2026.

[WyoBob]

Originally Posted by Blueface

Good point.
I did mean "maximum" of 5% contribution.
I have 10 years to go before I can touch it at 59 and 1/2.
I have it spread all over the place and have had it that way for years.
Mortgage rate is low at only 5 and 3/4.
Just wondering where my money will be best served if it does reach the point it is worthless.
I figured the house paid for is at least my house.
Funds gone south won't help me pay it.

I think you have a pretty good plan. Contribute to the match and use the rest to pay down the mortgage (assuming you're not carrying credit card debt.) It is a very nice feeling having your house paid for.

As far as gold and silver, I'm not a big fan. Do some research on the Hunt brother's silver play in 1979. I watched a lot of money get made and lost during that time.

If you buy low and sell high, metals are a wonderful thing. But, if you buy physical, you buy retail and sell wholesale. If things get really bad, what are you going to do with physical gold? If you need food and I have food to sell, I don't want gold. I want to trade for something I need. I can't eat gold or use it to keep me warm.

I do think, long term, the stock market will provide decent returns. If you "bought the market" the day before the crash of 1987 and held it 10 years, you would have made around 10% return. I sold down my stock exposure quite a bit over the last year and am looking to re-invest at these lower prices but I think I have plenty of time. I think things might get worse before they get better. When I do start to buy, it will be ETF's of various indexes (as opposed to index mutual funds due to favorable estate tax treatment when I die and pass my estate to my kids).

WyoBob

[billhud]

Originally Posted by Blueface

Anyone changing what they have done until now with investments?

I'm investing less and helping the poor more. Why should I worry about tomorrow when we're among people who won't even eat today?

[cbsmokin]

I'm young(er) and I am maxing out the 401(K). My worthless dollars are buying so much more now than ever before.

Without risk there is no reward. Hopefully I can sell all of it back to you guys when you reenter the market for big gains. God I hope I'm doing the right thing. Dow Up almost 500 right now.