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ERICWS SparkPoints: (8,307)
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8/18/11 11:55 A

I'm buying today!

TURTLESDOVE Posts: 1,067
8/14/11 3:04 P


TLCOVERT1 SparkPoints: (0)
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8/14/11 1:09 P

That's correct, TURTLESDOVE, nothing but FOX!

TURTLESDOVE Posts: 1,067
8/12/11 3:23 P

I agree with you Eric. I don't know a whole lot about business and I don't pretend to, but someone gave me some good advice once. He told me not to believe everything I hear on CNN!!

ERICWS SparkPoints: (8,307)
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8/12/11 2:51 P

In theory you are correct.

In practice- watch how psycho the average senior citizen on SS would go t every market gyration. The average person is uneducated in finance and the workings of the market. They flip out enough as it is with the market- if SS were tied to it? Wow- revolutionary pressure and probably people would seriously panic and sell everything, causing a market crash, on a week like we just had.

TLCOVERT1 SparkPoints: (0)
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8/12/11 2:27 P

There shouldn't be any uproar at all. You don't lose money when the market takes a dump, you only lose money if you sell at that time. The investments you continue to make when the market is down, will be worth more when it goes back up. (Dollar cost averaging). If you're expecting to start using your investments in the near future, you should have most of your assets in bonds or money markets, so you're much less affected by stock fluctuations.
If you're buying mutual funds every month, the only way you'd lose all your money would be if all the hundreds of companies they invested in went bankrupt at the same time. (Companies like Kmart, Target, Exxon, Shell, Chevron, Mobil, McDonalds, Burger King, Wendy's, GM, Ford, Chrysler, Boeing, Northrop, General Dynamics, Microsoft, Google, etc. etc. If that were the case, you'd have a lot worse things to worry about besides your savings.)
The senseless fear mongering is done by those who believe big government is better, and want to control your life as much as possible.

ERICWS SparkPoints: (8,307)
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8/12/11 7:41 A

Had W's privatization occurred in 2005-06, what uproar do you think would have occurred in 2008 when the market crashed?

DAVEINSEOUL SparkPoints: (36,889)
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8/12/11 7:37 A

As far as I know, two countries have privatized their Social Security - Australia and Argentina. Both of them have been wildly successful - I'm not sure how Argentina's is holding up, but I visited Australia last year, and let me tell you they have a very well off elderly class.

I agree with your statement "not having an option to privatize is rediculous".

TLCOVERT1 SparkPoints: (0)
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8/12/11 12:32 A

Diversified portfolio and dollar cost averaging is pretty safe in the long run. As you get older, gradually shift to more conservative funds and a higher bond percentage in the portfolio. You don't loose money unless you sell when the price is low.
If people would do that, there wouldn't be any more people getting burned with fiascos like Enron and Bernie Madoff.
I wish I could have had the option to invest all the money I had to give the government to grossly missmanage and or steal in Social Security and Medicare "contributions"! Not having an option to privatize is rediculous.

ERICWS SparkPoints: (8,307)
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8/11/11 9:09 A

I don't know- if you dollar cost average, history shows that the indexes beat the market timers and the ultra-conservative investors over a long time horizon.

I admit that I accelerated my buying in 2008, and I did pretty well in doing so. i've been DCA'ing into an index fund-based target retirement fund for about 14 years now, and I'm quite sure that I've out-performed inflation and conservative investments, at the least.

Maybe I haven't beaten gold, and I know that those of you who have the knowledge and time can do the shorting and timing to beat me, but I am feeling ok w/ both my long-term mix and short-term safety net for now!

I like volatility though- this week is a nice buying opportunity in my opinion!

DAVEINSEOUL SparkPoints: (36,889)
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8/11/11 12:16 A

In 2008, I got seriously burned in the stock market - took my lickings, dumped my stock, invested in a US bond index fund - and never looked back.

Conservative investment? Yep. But I get 6-7 percent year in and year out since 2008.

Debt troubles? Well, everyone's investing in bonds - my fund gave me a 700 dollar bump up in the past two days.

I'm a pretty happy conservative camper:-).

ANDYLINDS SparkPoints: (0)
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8/10/11 11:35 P

I personally started buying gold in 2001 after watching the 1999 Internet bubble burst. If you factor in inflation I don't think anyone in Index Funds is better than even over the past ten to fifteen years. I am just not a buy and hold fan, I try to find the trends and ride them until they reverse and right now, the trend is down, so I'm shorting your index funds. Good luck to everyone. These are tough times.

8/10/11 10:24 P

I don't own any so I'm not too closely tied to it. That said I wished Obama wouldn't have bailed out the banks back in early '08, that's come back to bite us right in the a$$!!!!

HGSGUY SparkPoints: (148,184)
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8/10/11 10:20 P

Bartender...another round of Maalox!

I find it startling, but am invested in the long term. I know in a perfect world (and only thinking of MY savings situation) the more depressed the market stays, the more stocks I collect. If it shoots up like a rocket right before I retire, I laugh all the way to the bank.

I find the massive fluctuations a sign that the Wall Street crowd doesn't know what to do and that this may pass quickly. I see them in my mind as gazelles running wildly one direction then another.

So I don't change, I just hold on, watch overall performance of different assets I hold and make changes as I feel is right, just as I do any other time.

MACGRAW SparkPoints: (0)
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8/10/11 5:40 P

I agree on index funds to spread risk. There is a sale that might get better, might not. I'm buying but waiting to see if the sale gets better.

ARMSPORTS Posts: 1,310
8/10/11 5:39 P

I don't let the short term fluctuations influence my activity in any way. I have a pension instead of a 401K, so I don't have that as a major concern either. Rates have to go up. Thirty year fixed mortgage rates approaching 4.25%. C'mon!

ERICWS SparkPoints: (8,307)
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8/10/11 5:33 P

How does anyone here feel about the stock market's crazy gyrations? I have a long-term perspective, and am basically an index fund kind of guy, so i like these dips as buying opportunities.

If you don't sell, you haven't lost anything. if you buy, you may be getting it on sale.

That said, obviously you can't keep money you need in the short-term in the market.

My biggest concern is actually over interest rates- i wonder if the low HELOC rates wil continue......

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