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Message 31 of 47

Funny, but I always disliked the stock market. I out saved and used only CD's. When rates were at their lowest, I just ramped up the savings even more. I am figuring that I saved enough for one year of retirement for one year of work and I made a low to low average income. The peak of CD's is what helped me and laddering them helped as well. Now they are going back up. Nothing impressive, but 3% is what I average and on the amount I have saved I can live on it. Social Security is a just a bonus.
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Message 32 of 47
Good idea, but are we here to argue over cleaning counter tops?
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Message 33 of 47
Scott 1000 sheet rolls are single ply. Most stores have a store brand that matches up. It works just fine and lasts much longer than the 2 ply. Next time you shop, compare the square feet of your brand to Scott or the store brand of Scott. You are getting ripped off.
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Message 34 of 47

@ch44683397, That is what we all should be thinking about.  I have been keeping my ear to the ground.  The crash is at least a year away and maybe as far off as 4 years.

 

The wise thing to do is sell off half your stock in maybe a year from now for bonds.  Bonds are a very bad investment right now.  As interest rates rise, bonds become more attractive.

 

Be VERY wary it the market starts to surge again.  That may be the beginning of the crash.  A few months before any crash the market goes crazy.  Other safer stocks are called defensive stocks.  These make staples.  High dividend stocks might be safer.  They are more like a bond than a stock.  ATT is one of these.  Their value is in the dividend not growth.  These stocks are the first to recover after a crash. 

 

I suggest getting a subscription for a financial magazine. Money isn't the best advice but is readable.  For non experts this is a good tradeoff.  What good is the best advice if you can't understand it. 

 

Money claims we still have years left in the bull market.  They claim it is coming to an end.  Keeping your wealth is more important than making more.  They preached diversification and selling off some bull stock for defensive stock.  This is very brief, the last Money mag I read devoted the entire mag on what I stated in this little paragraph. All of this is commonly held beliefs.

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Message 35 of 47

@retiredtraveler, your advice sounded sage unless you you are very well informed.  The terible performance of bonds this century has modified the commonly held beliefs.  Bonds have not kept up with inflation any year this century.  This year, wise investors sold off ALL their open ended bonds and bought closed ended bonds like T-Bills.  Closed ended means you will get a specified cash at a specified time.  Open ended bonds lose value as interest rates rise like they did. They lost SIGINIFICANT value.  You may have taken a bath.  That isn't risky because the problem is predictable is is just terrible investing.

 

The new commonly held belief is a retired person has 50% in stocks otherwise you will run out of money.

 

You need to keep current!  BTW I have been in the market almost 50 years.  I have experianced every horror in those 50 years. Now I am doing my best to avoid losing it all.  For the last 18 years I started to really educate my self.  I still got creamed in 2000 and 2008.  In 2008 I didn't make any of the mistakes I made in 2000.  Still I got creamed.  I now use a broker who has managed to keep their clients from getting killed in a crash.  I let him make all the decisions.  He is probably the most expert person I have ever talked with. The problem with getting a financial person is, you need to know a good deal to spot the sharks. Most are sharks.  When we were looking for a different broker, for diversification.  We interviewed 10 brokers with good references.  Only 1 was honest.  My wife got quite the education.  She did all the talking until after the broker gave her his plan of action. The brokers were not as careful as they should have been, trying to make a killing on my wife.  She didn't follow the conversation but she realized the guy was going to rip her off.They all wanted to sell off solid investments to buy others of dubious worth.  Obviously, they were getting a cut on the sale.  SEC has been trying to prevent this for decades.  The last Wall St reform was supposed to have those protections but were removed in the final version.

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Message 36 of 47

@s804940b,

3% doesn’t keep up with inflation and the devaluation of the dollar. The DOW tripled in the last decade. I have more assets than my wildest dreams. I did much better than the DOW.  I pay a good deal of money for an ace to manage my investments.   I am slowly selling off stocks (profits) into cash. Even if my stocks bomb, I have large amount of cash. More than double what I would have if I had only made 3%.

 

It is wise not to rely on SS. Too many boomers are retiring to fund SS and Medicare. When I was 50 there were 5 workers to support 1 SS. In 2030 it will only be 2 workers; the system will collapse!  Too many of us rely on SS for most of their retirement income.  There will be wide spread misery when that happens.

 

I tip my hat to another saver!

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Message 37 of 47

Ron-I do agree with what you have said, however, I did it my way and it has worked out very well for me.  I could have retired at 50 and SS is nice, but I do know that it is fragile and I did not depend on it.  For the sake of those who do, I hope they will find ways to make it stronger.  I am glad your plans worked out for you, but I am more than satisfied with my results.

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Message 38 of 47
Your advice is good and has worked for you. Since I could and can out save any attractive rate of return, I am sticking with what I know and do best.
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Message 39 of 47

Well, if you are satisfied that is what counts. I could not have retired at even 60. If I did I would need to rely on SS. As it is, my wife and I make as much on investments as our taxable income. In another year we ought to make as much as our gross income. I am almost 69 and ready to retire. We will have the money to actually have golden years after decades of scrimping.

 

I am sure they will shore SS up for a few more years but the cost is too great to handle. 1/3 of our population will be retired. Most of them will contribute nothing to taxes or SS but will be collecting SS and Medicare. Although the average IRA/401k is 170k, 1% of the population owns 90% of the savings. The most common savings is only 17k. Their out of pocket medical expense will be about 250k. Our society is overwhelmingly spenders not savers. We are in big trouble. Our way of life is not sustainable.

 

Stick to your CDs now is the wrong time to enter the market!  As I stated, I am slowly cashing out.  I made my money,  I am slowly getting defensive. 

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Message 40 of 47
It sounds like you have done what is right for you. I do like the idea of getting SS, but I intend to save it or use it to do a few household projects. It is not a must and never was. I am younger than you, but I do work part time. I went from 7 days a week to just part time by splitting my job in half with someone that worked for me 10 years ago. I have been so much happier. The money has kept me from touching my principal and most of the income from it. I have a separate account for medical and I do have 250k in that. Most of my lifestyle is very modest. I travel a little, enjoy cooking but eat out once a week, enjoy shopping and am careful about my spending. Life is good. I am happy that your choices are good for you.
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