Quote:
Originally Posted by manaboutown
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re; Parents investments
In the old days-NOT THAT LONG AGO, a very viable option was to build a treasury ladder. The returns on Treasuries was about as secure as could be and they paid roughly 2% more than the posted rate of inflation. That is no longer so.
Bank CDs pay what I call spit-that was not so for our parents.
Many people had pensions rather than 401Ks, 403Bs etc. That inflow of money from IRAs, 401ks, 403bs AND GOVERNMENT MEDDLING etc explains the abnormal stock market returns.
If you do not work for government it is likely you do not have a pension.
re: not owing money
Again due to government manipulation. You can mortgage your home for about 3.5%. Age discrimination is outlawed so you could be 80 and take out a 30 year mortgage so by the time you pay it off, you will be 110. Average LONG TERM stock market return is, depending on what you read
about 9% for the s&p 500-30 year span.
My view-I would not be at all surprised if our government with deficit spending and TWENTY TRILLION DOLLARS in debt destroys the value of the dollar. They have actually said it out loud. They want a 2% rate of inflation. This has never been done in history-a CONTROLLED 2% RATE OF INFLATION. If, they do do it, in 36 years you will need two dollars to buy what a dollar does today.
COMPUTERS-have changed most everything. Broker commissions are way down. Your access to information is the same as what a financial advisor has so what are you paying them for?
AS TO DIVERSIFICATION-that is the rule we all have heard and hopfully follow BUT in the market crash of 2007-stocks went down, foreign stocks went down, small caps, large caps all wend down. Bonds went down.Real estate went down. The only thing that did not go down was gold.
AS OUR PARENTS lived with fear of the great depression, WE/I live in fear of the great recession of 2007.
SOLUTION? BEATS ME.