[jojo]

Originally Posted by manaboutown

Why not consult a fee based financial advisor you vet ahead of time who will sign on to act as a fiduciary? Some people experience extreme stress making big financial decisions, especially irrevocable ones such as selling securities which may bring about huge tax bills or significant losses. Frankly, before I make big decisions in areas with which I am unfamiliar, unknowledgeable or uncomfortable I try to consult one or more experts

It's difficult to find financial advisors who will review a portfolio only. Everyone I've talked to wants to manage it. I would particularly like to find a financial advisor strong in advising for tax purposes.

[CoachKandSportsguy]

Originally Posted by 44Apple

Related to all this is, how long do you hold after you buy? And when do you cash in your stock gains? After 10%? 20%?

I'm thinking of targeting my IRA oil/energy holdings first as they have basically doubled and I wonder if they might begin to tail off. I don't want to lose those gains.

First, well done on the gains. From a portfolio point of view, that is if you look at your pile of money and investments as a portfolio, the large gains become a higher percentage of the portfolio, which means you are less diversified, and you should sell at least 50% to 75% of the position to keep the gains, as well to rotate into the undervalued stocks or sit in cash and wait for the next undervalued, high return potential sector.

Second, trading is about loss aversion, both loss of principal and loss of gains. . . and not sure how you picked that sector, then repeat that sector selection again for other sectors

gains can add up

[Two Bills]

Originally Posted by PugMom

will the new fuel prices be a problem for you? i read it's going up considerably.

Not too bothered. Everything is going up.
Wife and I will get a nice pension rise, inline with inflation.
Lots of 'free' money being thrown around, whilst avoiding tackling the cause of the problem.
We are going through one of our 'Financial madness' periods at the moment.
The UK government are experts at the great sport of Foot Shooting.'
Give it a few years and it will go back to some semblance of fiscal sanity..
(Well at least until the next time.)

Borrow your way out of debt seems to be the mantra at moment!

[rsmurano]

How long do you hold onto your stocks/etf’s/funds? Forever until you shouldn’t.
Most of my taxable funds have been invested for many years/decades and some not as long because the economy had changed enough to hit a particular sector hard (for example, in the past oil, tech).
When you have good funds/stocks, which meet this criteria: low cost (< .2%), low risk, high return, low turnover (high turnover costs more and you pay higher taxes), high dividends (3% or higher), and the managers must have these funds in their portfolio, why sell?
We live off our dividends from our taxable accounts and we use the bucket system to live on.
For our non-taxable accounts, I day trade (day/days/week/month) during this recession/downturn, or when times are good, use the same criteria to purchase stocks/funds as my taxable accounts.
No bonds, no annuities, no mixed/balanced funds, just normal low cost/low risk/high return equities.

[jimjamuser]

Originally Posted by melpetezrinski

"Older retired people are the ones MOST hurt by inflation because they are on fixed incomes"

Actually poor people are hurt the most by inflation. They usually have no savings/investments to earn the higher interest and generally don't see pay increases that match the level of inflation. On the hand, the "older retired people" usually have social security, which IS indexed for inflation. If you are talking about pensions when you mention "fixed income" well, something tells me that you will be way ahead of the "poor" community if your are collecting social security AND a pension. IMO!

It is true that "the poor" are going to be affected negatively when inflation is high. But, I was thinking that a large % of "the poor" are young and working. Because they are young and working they can adjust their lives MORE easily than older retired people. Being young they have more FLEXIBILITY to change their lives than older retired folks. Younger people can relocate easier to increase their earnings. Young people have the energy and ambition to work more hours or get a 2nd job. Older people have much LESS flexibility.

I can see the case for saying that poor people are the MOST affected by inflation. And experts may say that. But, I think that it is debatable. Rapid inflation is difficult and confusing for all economic groups. And there are subgroups like non-working poor and working retired people, which confuses the debate as to which group is most adversely affected by inflation.

[justjim]

Pardon the off topic diversion but 40% of Americans don’t have $400.00 in cash. That would be over 120 million people. This group is definitely hurt by inflation. Many are hurt more by their inability to budget and effectively handle their own financial affairs. Parents and our education system have failed IMHO.

[justjim]

Originally Posted by jimjamuser

I believe that the Fed. has the MANDATE to try to keep INFLATION around 2%. They control the prime borrowing rate to achieve the 2% inflation rate. Today with inflation high and rising, they try to dampen economic growth and drive inflation back to 2%. To accomplish this, the Fed must walk a tightrope to bring down inflation without causing a RECESSION. Historically, most often, they have FAILED !

Who gives the mandate of 2% inflation? Keeping inflation at 2% is not sustainable. If there is a mandate (?) it realistically should be more in the 3%-4% range.

[CoachKandSportsguy]

Originally Posted by bragones

Sounds like market timing. It never worked for me.
FYI: you can also sell CDs purchased through Fidelity on the open market. I will need to check if the proceeds are are taxed as cap gains.

Why would someone buy an interest rate instrument with penalties for selling, no potential capital gains, and less interest than the market rates from an institution which takes a huge management fee from the interest?

CDs should seldom/never be purchased as they are a very inefficient financial instrument

just my opinion from looking at the sales material as compared to other similar competitive instruments.

[Stu from NYC]

Originally Posted by bowlingal

why don't you ask a financial professional instead of all the yahoos on here?

As the old saying goes ask 10 economists for prediction and you will get 11 different answers.

If anyone can consistently time the market they will be filthy rich and no need to do anything but lay on a beach drinking margaritas.

When the wizard of Omaha cannot time the market why would you think anyone else could?

Common wisdom is everyone expects a recession, will there be one who knows if there is one mild or strong also who knows.

One of the best long term bond funds out there is Fidelity Contrafund that goes the other way and is normally very successful.

[Boomer]

Originally Posted by Stu from NYC

As the old saying goes ask 10 economists for prediction and you will get 11 different answers.

If anyone can consistently time the market they will be filthy rich and no need to do anything but lay on a beach drinking margaritas.

When the wizard of Omaha cannot time the market why would you think anyone else could?

Common wisdom is everyone expects a recession, will there be one who knows if there is one mild or strong also who knows.

One of the best long term bond funds out there is Fidelity Contrafund that goes the other way and is normally very successful.

I used to sometimes copy Will Danoff’s homework, when I first started trading online. I looked at his 10 top holdings from time to time, and then looked further into any of them that caught my eye. (Yes. I know. I will now be chastised by some random poster for not consulting a professional.)

Btw, some of you, especially if interested in behavioral economics, might want to read — or reread — Freakonomics. I recently listened to the original, on Audible, and am now into the next one and some of the podcasts. I think the first one was written somewhere around 2005. Looking at the original Freakonomics from the future of 2022 can be a little eerie, but thought provoking.

Boomer

[CoachKandSportsguy]

Originally Posted by Boomer

Btw, some of you, especially if interested in behavioral economics, might want to read — or reread — Freakonomics.

Boomer

Absolutely! Handling money is always behavioral, as in the modern society, its the currency of power! Another good book is "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by Morgan Housel

Amazon.com

always learning

day trader guy

[Stu from NYC]

Originally Posted by Stu from NYC

As the old saying goes ask 10 economists for prediction and you will get 11 different answers.

If anyone can consistently time the market they will be filthy rich and no need to do anything but lay on a beach drinking margaritas.

When the wizard of Omaha cannot time the market why would you think anyone else could?

Common wisdom is everyone expects a recession, will there be one who knows if there is one mild or strong also who knows.

One of the best long term bond funds out there is Fidelity Contrafund that goes the other way and is normally very successful.

Oops meant to say growth stock fund not bond fun which is definitely Contrafund.

[chrissy2231]

Originally Posted by 44Apple

At what point should one change from being an investor to a "saver"?

I've been retired a number of years and have invested all my adult life. Luckily, we have enough non-investment money to live on.

I now wonder if I should gradually begin selling my ETFs, Mutuals, and stocks and move all the money into fixed income.

I know the outcome will be lower and stable, but I won't have to deal with the daily ups and downs.

I'm familiar with the 60/40 rule but wonder if I should go 0/100.

I did. If you have enough for the rest of your life, more interest is not necessary. I found I Bond 6+%, also CD's 3-4.5%

[rmd2]

Originally Posted by manaboutown

Well, I for one appreciate the serious responses. Most of the folks who were able to retire and move to The Villages got here through hard work and persevered in managing their finances well enough to retire here. We all have different investment experiences and outlooks but apparently most of them worked at least well enough to get and sustain us here.

Thank you. Very well stated.

[rmd2]

Originally Posted by chrissy2231

I did. If you have enough for the rest of your life, more interest is not necessary. I found I Bond 6+%, also CD's 3-4.5%

I feel the same way. I am fairly happy with the bond and CD rates. I got out of equities and have done just fine.