[manaboutown]

They make sense to me. 7 Ways to Manage Money Better than Your Parents Did

Caveat numero uno is to 'avoid placing blind faith in financial advisors.'

[BK001]

Good advice. Thank you for posting.

[autumnspring]

Originally Posted by manaboutown

They make sense to me. 7 Ways to Manage Money Better than Your Parents Did

Caveat numero uno is to 'avoid placing blind faith in financial advisors.'

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.

[tcxr750]

Option 2: My mother put dad's paycheck money in separate envelopes and managed expenses. We lived in a bungalow. One car garage and one car. Also one TV set. (1950s-60s). Debt free at retirement (age60) they sold the house and moved to a new condo in Florida. Retirement income sources consisted of Social Security and dads pension from Republic Steel. (Non management). Some savings in savings bonds.
In America today one key element that is overlooked is living within your means.

[Chi-Town]

Originally Posted by suesiegel

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.

Just one comment...having access to information doesn't mean you know what to do with it. A financial adviser is a necessary component for many, myself included.

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