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Denny M · 15 November 2008, 09:46 PM

So what is your economic strategy in these turbulent times? Where would you invest your money? What do you think of debt? Broadly speaking where do you think its best to invest:

1) Equities (shares, managed/mutual funds, derivatives and the like).
2) Real Estate / property.
3) Fixed Interest (bonds etc)
4) Cash (Term Deposits etc)
5) Gold other precious gems/minerals.
6) Collectibles (Art, coins, stamps, watches).
7) Something else.

In the good old days, when one sector was down the other would be up. Currently most traditional sectors look like duds at least for the short to medium term. It's frustrating not being able to invest in something that offers stable, positive returns or worse seeing funds invested take a hit.

Look forward to reading about your financial strategies.

toph · 15 November 2008, 10:11 PM

IMO -property. It will go back up in value and you also gain a rental income.

AJF · 15 November 2008, 10:37 PM

Gold, mining stocks and the $ is where people go historically. What is refered to as "flight to safety".

Property is a reliable longterm investment, but at the moment it is a brave person who can call the bottom of the market. If you have money to spare and don't mind taking a loss (short term) then it might be worth investing in real estate. But IMHO there is a long way to go to we hit the bottom of the market particularly in the US.

I would play it safe. Many of the experts think we could be heading into a deep recession with the possibility of a depression.

AJF.

Jimbits76 · 15 November 2008, 10:43 PM

My strategy is not to spend anything!!!!

Not like I have anything to spend anyway!

Keep what you've got and hold on tight to ride it out!

J

redshirt1957 · 15 November 2008, 10:59 PM

Emergency fund of around 2,000.

Then six months of living expenses in a passport savings account. This will now include the 2,000 original emergency fund.

Pay off all unsecured debt.

Pay off car loans, Heloc, 2nd mortgages and such.

Then, invest 10 to 15% of gross pay for college/retirement.

Payoff home mortgage.

Live debt free.

This formula has been around forever and now a few "I am smarter than you" guys are selling common sense and making big bucks.

Now investeing the 10 to 15%.

Short term, which is less than 5 years....MMAs.

Long term, a mixture of stocks/mutual funds (not individual stocks), MMAs, and MABYE some real estate.

Remember your house in not a great investment. Most will argue, but the return over 20 years is not that great when you factor in upkeep and repairs. The reason I even bring this up, since most will not agree, is that bigger and more expensive is not better. Live below your means as far as housing goes. Now, I do mean buy a nice home.

I have done well with rental property, but I always lived near the properties. When I had to move, I sold the properties. No long distant ownership of real estate for the individual. Only time I did well when flipping a home was when I lived in it. Hard to do with a family, as the place will be torn up for most of the time you live there.

Finally, my portfolio is as follows.

Cash....10%
Stocks (401 (k); Roth; Traditioanl IRA; SEP)......30%
MMA and Tax Free Bonds...............30%
Real Estate..........30%

A good rule of thumb is to double your net worth every 5 to 7 years, ONCE you are out of debt. You can decide if a home mortgage is debt. I detest debt.

JimSnyder · 15 November 2008, 11:07 PM

All this has me thinking.......

Jimbits76 · 15 November 2008, 11:14 PM

Quote:

Originally Posted by redshirt1957

Emergency fund of around 2,000.

Then six months of living expenses in a passport savings account. This will now include the 2,000 original emergency fund.

Pay off all unsecured debt.

Pay off car loans, Heloc, 2nd mortgages and such.

Then, invest 10 to 15% of gross pay for college/retirement.

Payoff home mortgage.

Live debt free.

This formula has been around forever and now a few "I am smarter than you" guys are selling common sense and making big bucks.

Now investeing the 10 to 15%.

Short term, which is less than 5 years....MMAs.

Long term, a mixture of stocks/mutual funds (not individual stocks), MMAs, and MABYE some real estate.

Remember your house in not a great investment. Most will argue, but the return over 20 years is not that great when you factor in upkeep and repairs. The reason I even bring this up, since most will not agree, is that bigger and more expensive is not better. Live below your means as far as housing goes. Now, I do mean buy a nice home.

I have done well with rental property, but I always lived near the properties. When I had to move, I sold the properties. No long distant ownership of real estate for the individual. Only time I did well when flipping a home was when I lived in it. Hard to do with a family, as the place will be torn up for most of the time you live there.

Finally, my portfolio is as follows.

Cash....10%
Stocks (401 (k); Roth; Traditioanl IRA; SEP)......30%
MMA and Tax Free Bonds...............30%
Real Estate..........30%

A good rule of thumb is to double your net worth every 5 to 7 years, ONCE you are out of debt. You can decide if a home mortgage is debt. I detest debt.

I have no bloody idea what any of that means but................

Lend us a quid?

J

Trurolexer · 15 November 2008, 11:34 PM

I don't have any strategy...

JimSnyder · 15 November 2008, 11:39 PM

Quote:

Originally Posted by Trurolexer

I don't have any strategy...

x2! I'm just trying to stay upright

redshirt1957 · 15 November 2008, 11:42 PM

Quote:

Originally Posted by Jimbits76

I have no bloody idea what any of that means but................

Lend us a quid?

J

Get all my knowledge from the back of a beer can. Would you trust taking a loan out with a guy named BUBBA?

JimSnyder · 15 November 2008, 11:50 PM

Quote:

Originally Posted by redshirt1957

Get all my knowledge from the back of a beer can. Would you trust taking a loan out with a guy named BUBBA?

I would trust a Redneck named Buddha

redshirt1957 · 16 November 2008, 12:38 AM

Quote:

Originally Posted by JimSnyder

I would trust a Redneck named Buddha

Dad...please come home.

Letsgodiving · 16 November 2008, 03:16 AM

Unfortunately I work for a company that is currently going down in flames but I have always lived well below my means so I will be fine whatever happens. There have been many rounds of lay-offs and so many people were not prepared for this and they are really hurting.

ALL my personal $$ is in high yield savings accounts and CD's right now and I don't see that changing any time soon. I have methodically moved about 15% of my 401k into the various mutual funds as this downturn has progressed and I have about another 5% that will moved if we have further weakness which will put me at 100% in mutual funds. I'm betting on the long term strength of the economy and right now I'm looking like a chump but I have faith that in 20 years it will pay off. Most would say it's overly aggressive and risky but I'm willing to make that bet.

JJ Irani · 16 November 2008, 03:23 AM

Our strategy?

At our respective ages of 59 and 62 (I'm of course talking about Zemina and me), just hang onto our jobs (we both work in the same firm, but different jobs), keep on saving and avoid debts.

The good news is we've been debt-free since June 2001 when we paid off our mortgage.

Everything we own is ours - no loans, no finance, no hire-purchase, no nothing - we don't owe anyone a brass farthing!!

We love life, enjoy our 2 wonderful daughters and 4 beautiful grand-children.....and of course, we both enjoy good health and I have the added privilege of all these wonderful tossers on TRF.

Can anyone ask for anything more?

Cheers - JJ

Joey_V · 16 November 2008, 05:13 AM

My strategy is to keep on truckin'.

I'm young and I'm under a contract for residency. I have a little over 3 years left in my contract so barring a financial meltdown of the hospital (which is supported by the city of Chicago) due to a Great Depression part II, I should be ok. I can see our benefits being reduced as money becomes tight - i.e. no more free food for docs, etc...

It's still a good sign though when I get emails from other hospitals and residency programs looking for ER docs to moonlight (meaning work an extra shift at their hospital) for $150/hr.. like the email I just received 30 minutes ago.

I'm just hoping for the best.

The good news for me is that if this continues or atleast plateaus like this.... the housing market will remain stagnant... and in 3 years time, I would be able to afford a much larger house than I would otherwise.

I guess I try to look at the glass half full.

But I know it's tough out there for a lot of people... I have friends in other fields who are on the brink of being laid off or others who have been forced to relocate out of state to keep their job.

:(

Joey_V · 16 November 2008, 05:15 AM

Quote:

Originally Posted by JJ Irani

Our strategy?

At our respective ages of 59 and 62 (I'm of course talking about Zemina and me), just hang onto our jobs (we both work in the same firm, but different jobs), keep on saving and avoid debts.

The good news is we've been debt-free since June 2001 when we paid off our mortgage.

Everything we own is ours - no loans, no finance, no hire-purchase, no nothing - we don't owe anyone a brass farthing!!

We love life, enjoy our 2 wonderful daughters and 4 beautiful grand-children.....and of course, we both enjoy good health and I have the added privilege of all these wonderful tossers on TRF.

Can anyone ask for anything more?

Cheers - JJ

JJ -

You are one lucky man! I wish I didn't owe nobody anything. Maybe someday I can be like you!

Cheers my friend!

JJ Irani · 16 November 2008, 05:18 AM

Quote:

Originally Posted by Joey_V

JJ -

You are one lucky man! I wish I didn't owe nobody anything. Maybe someday I can be like you!

Cheers my friend!

Thanks, Joey.....but if you became like me, you'd have over 50,000 posts on this damn forum!!

Launch Mini · 16 November 2008, 05:19 AM

I agree with Joe in the house 100% not being a great investment.
Twist the common understading of ASSETS and LIABILITIES.
Most consider assets something they own, and a liability something they have to pay back.
How about :
ASSET = Increases in value, does not require cash flow to support.
LIABILITY = Requires cash flow to support.
SO, your house is a LIABILITY. You have huge upkeep to maintain it. AND, unless you sell it and severely downsized, that equity does you no good in your retirement years.
My 2 cents ( albeit Canadian)

sini1717 · 16 November 2008, 05:50 AM

P a n i c........................

ttannert · 16 November 2008, 05:50 AM

Quote:

Originally Posted by redshirt1957

Emergency fund of around 2,000.

Then six months of living expenses in a passport savings account. This will now include the 2,000 original emergency fund.

Pay off all unsecured debt.

Pay off car loans, Heloc, 2nd mortgages and such.

Then, invest 10 to 15% of gross pay for college/retirement.

Payoff home mortgage.

Live debt free.

This formula has been around forever and now a few "I am smarter than you" guys are selling common sense and making big bucks.

Now investeing the 10 to 15%.

Short term, which is less than 5 years....MMAs.

Long term, a mixture of stocks/mutual funds (not individual stocks), MMAs, and MABYE some real estate.

Remember your house in not a great investment. Most will argue, but the return over 20 years is not that great when you factor in upkeep and repairs. The reason I even bring this up, since most will not agree, is that bigger and more expensive is not better. Live below your means as far as housing goes. Now, I do mean buy a nice home.

I have done well with rental property, but I always lived near the properties. When I had to move, I sold the properties. No long distant ownership of real estate for the individual. Only time I did well when flipping a home was when I lived in it. Hard to do with a family, as the place will be torn up for most of the time you live there.

Finally, my portfolio is as follows.

Cash....10%
Stocks (401 (k); Roth; Traditioanl IRA; SEP)......30%
MMA and Tax Free Bonds...............30%
Real Estate..........30%

A good rule of thumb is to double your net worth every 5 to 7 years, ONCE you are out of debt. You can decide if a home mortgage is debt. I detest debt.

You sound like Dave Ramsey!

redshirt1957 · 16 November 2008, 05:54 AM

Quote:

Originally Posted by ttannert

You sound like Dave Ramsey!

I knew someone would say that. I only recently saw him on Fox News Channel and thought, damn, I have been saying that for 20 years.

gmh1013 · 16 November 2008, 06:16 AM

zero it's to uncertain right now.....way to much beyond our control
only control what you can control

Rodmo · 16 November 2008, 08:33 AM

No debt, and cash.........

Cash is King.

Cheers.........Rod

unclesallie · 16 November 2008, 10:06 AM

Quote:

Originally Posted by sini1717

P a n i c........................

sounds like my 'strategy'

absent real wealth there is no safe harbor
safe harbor is an illusion anyway
illusion is most of life
life is what we have
what we have is illusion?

Greenring · 16 November 2008, 11:11 AM

Conserve cash, don't incur un-necessary expenses.

Bisquitlips · 16 November 2008, 11:37 AM

We've got 6 months expenses in cash and everything else in money markets for now. We have very little debt and will be debt free very soon except for the mortgage. We here in Missouri have not been as hard hit with our properties losing values, but we didn't skyrocket here like some of the rest of the country. Read stability.

So, the jobs look secure and the financial status with us is OK.

The US Dow should bottom in my opinion around 7000 - 7500. Capitulation has come on strong this last 5 months and all we need now is for the hedge fund investors to stop pulling out. That should signal the bottom. When that happens prepare for a nice 20% hop up and then a very long road back to the highs of last year. A very long road. Probably 7 to 10 years. There is opportunity here.

Just my 2 cents...

bodybump · 16 November 2008, 02:15 PM

save save save save save....Cash is king!!!! Rip all credit cards and use only 1-2....and dont go to BUY AND SELL FORUM!!!!!!!

Denny M · 16 November 2008, 09:34 PM

[QUOTE=redshirt1957;851953]Emergency fund of around 2,000.

I have done well with rental property, but I always lived near the properties. When I had to move, I sold the properties. No long distant ownership of real estate for the individual. Only time I did well when flipping a home was when I lived in it. Hard to do with a family, as the place will be torn up for most of the time you live there.

QUOTE]

Bubba, i'm curious about your statement. Why don't you believe in long distance ownership of real estate?

And some interesting contributions made, thanks everyone!

ttannert · 17 November 2008, 09:48 AM

Quote:

Originally Posted by redshirt1957

I knew someone would say that. I only recently saw him on Fox News Channel and thought, damn, I have been saying that for 20 years.

My favorite Dave Ramsey Saying it to "Act your Wage!". He is a great person to listen to about your finances.

15 November 2008, 09:46 PM	#1
Denny M Member Join Date: May 2008 Location: Australia Posts: 242	In times of economic uncertainty, what is your strategy? So what is your economic strategy in these turbulent times? Where would you invest your money? What do you think of debt? Broadly speaking where do you think its best to invest: 1) Equities (shares, managed/mutual funds, derivatives and the like). 2) Real Estate / property. 3) Fixed Interest (bonds etc) 4) Cash (Term Deposits etc) 5) Gold other precious gems/minerals. 6) Collectibles (Art, coins, stamps, watches). 7) Something else. In the good old days, when one sector was down the other would be up. Currently most traditional sectors look like duds at least for the short to medium term. It's frustrating not being able to invest in something that offers stable, positive returns or worse seeing funds invested take a hit. Look forward to reading about your financial strategies.

15 November 2008, 10:11 PM	#2
toph "TRF" Member Join Date: Apr 2008 Real Name: ChrisTOPHer Location: Sydney Watch: Rolex, Brellum, Posts: 12,601	IMO -property. It will go back up in value and you also gain a rental income. __________________ "Where no counsel is the people fall, but in the multitude of counselors there is safety." Member No.# 11795

15 November 2008, 11:07 PM	#6
JimSnyder "TRF" Member Join Date: Feb 2007 Real Name: Jim Snyder Location: Ohio Watch: Ask me later..... Posts: 7,711	All this has me thinking....... __________________ "You ain't lived, 'til you've had your tires rotated by a red-headed women."

16 November 2008, 03:16 AM	#13
Letsgodiving "TRF" Member Join Date: Jul 2007 Real Name: Mike Location: Virginia, US Watch: SD 16600 Posts: 4,310	Unfortunately I work for a company that is currently going down in flames but I have always lived well below my means so I will be fine whatever happens. There have been many rounds of lay-offs and so many people were not prepared for this and they are really hurting. ALL my personal $$ is in high yield savings accounts and CD's right now and I don't see that changing any time soon. I have methodically moved about 15% of my 401k into the various mutual funds as this downturn has progressed and I have about another 5% that will moved if we have further weakness which will put me at 100% in mutual funds. I'm betting on the long term strength of the economy and right now I'm looking like a chump but I have faith that in 20 years it will pay off. Most would say it's overly aggressive and risky but I'm willing to make that bet. __________________ The fool, with all his other faults, has this also - he is always getting ready to live. - Epicurus (341–270 BC)

16 November 2008, 03:23 AM	#14
JJ Irani Fondly Remembered Join Date: May 2005 Real Name: JJ Location: Auckland, NZ Watch: ALL SOLD!! Posts: 74,320	Our strategy? At our respective ages of 59 and 62 (I'm of course talking about Zemina and me), just hang onto our jobs (we both work in the same firm, but different jobs), keep on saving and avoid debts. The good news is we've been debt-free since June 2001 when we paid off our mortgage. Everything we own is ours - no loans, no finance, no hire-purchase, no nothing - we don't owe anyone a brass farthing!! We love life, enjoy our 2 wonderful daughters and 4 beautiful grand-children.....and of course, we both enjoy good health and I have the added privilege of all these wonderful tossers on TRF. Can anyone ask for anything more? Cheers - JJ __________________ Words fail me in expressing my utmost thanks to ALL of you for this wonderful support during my hour of need!! I firmly believe that my time on planet earth is NOT yet up!! I shall fight this to the very end.......and WIN!!

15 November 2008, 10:37 PM	#3
AJF Member Join Date: Jun 2008 Real Name: Ally Location: Surrey (UK) Watch: 15223 Posts: 638	Gold, mining stocks and the $ is where people go historically. What is refered to as "flight to safety". Property is a reliable longterm investment, but at the moment it is a brave person who can call the bottom of the market. If you have money to spare and don't mind taking a loss (short term) then it might be worth investing in real estate. But IMHO there is a long way to go to we hit the bottom of the market particularly in the US. I would play it safe. Many of the experts think we could be heading into a deep recession with the possibility of a depression. AJF.

15 November 2008, 10:43 PM	#4
Jimbits76 "TRF" Member Join Date: Sep 2007 Location: UK Posts: 9,407	My strategy is not to spend anything!!!! Not like I have anything to spend anyway! Keep what you've got and hold on tight to ride it out! J

15 November 2008, 10:59 PM	#5
redshirt1957 "TRF" Member Join Date: Sep 2007 Real Name: Bubba Location: Bitsyville! Watch: Blue YM today! Posts: 10,053	Emergency fund of around 2,000. Then six months of living expenses in a passport savings account. This will now include the 2,000 original emergency fund. Pay off all unsecured debt. Pay off car loans, Heloc, 2nd mortgages and such. Then, invest 10 to 15% of gross pay for college/retirement. Payoff home mortgage. Live debt free. This formula has been around forever and now a few "I am smarter than you" guys are selling common sense and making big bucks. Now investeing the 10 to 15%. Short term, which is less than 5 years....MMAs. Long term, a mixture of stocks/mutual funds (not individual stocks), MMAs, and MABYE some real estate. Remember your house in not a great investment. Most will argue, but the return over 20 years is not that great when you factor in upkeep and repairs. The reason I even bring this up, since most will not agree, is that bigger and more expensive is not better. Live below your means as far as housing goes. Now, I do mean buy a nice home. I have done well with rental property, but I always lived near the properties. When I had to move, I sold the properties. No long distant ownership of real estate for the individual. Only time I did well when flipping a home was when I lived in it. Hard to do with a family, as the place will be torn up for most of the time you live there. Finally, my portfolio is as follows. Cash....10% Stocks (401 (k); Roth; Traditioanl IRA; SEP)......30% MMA and Tax Free Bonds...............30% Real Estate..........30% A good rule of thumb is to double your net worth every 5 to 7 years, ONCE you are out of debt. You can decide if a home mortgage is debt. I detest debt.

15 November 2008, 11:34 PM	#8
Trurolexer Banned Join Date: Dec 2007 Location: USA Watch: 5513MaxiI+PreComex Posts: 18,421	I don't have any strategy...

16 November 2008, 05:13 AM	#15
Joey_V "TRF" Member Join Date: Jan 2008 Real Name: Joey Location: Dallas, TX Watch: SS Sub 16610 M Posts: 3,824	My strategy is to keep on truckin'. I'm young and I'm under a contract for residency. I have a little over 3 years left in my contract so barring a financial meltdown of the hospital (which is supported by the city of Chicago) due to a Great Depression part II, I should be ok. I can see our benefits being reduced as money becomes tight - i.e. no more free food for docs, etc... It's still a good sign though when I get emails from other hospitals and residency programs looking for ER docs to moonlight (meaning work an extra shift at their hospital) for $150/hr.. like the email I just received 30 minutes ago. I'm just hoping for the best. The good news for me is that if this continues or atleast plateaus like this.... the housing market will remain stagnant... and in 3 years time, I would be able to afford a much larger house than I would otherwise. I guess I try to look at the glass half full. But I know it's tough out there for a lot of people... I have friends in other fields who are on the brink of being laid off or others who have been forced to relocate out of state to keep their job. :( __________________ Current Rotation: Rolex Submariner Date (M) - 1/08, Rolex Milgauss GV (V) - 2/10, Rolex SS Black Daytona (V) - 6/10, Rolex GMTIIC (G) - 5/11, TAG Heuer Silverstone (286/1860) - 1/2015 Former-watches: Omega PO/2535.80/2254, TAG Carrera/F1x2/Monaco, Panerai 312K/292L Wish List: Panerai 270/505, Rolex SMURF, Rolex RG Daytona, Rolex DSSD

16 November 2008, 05:19 AM	#18
Launch Mini "TRF" Member Join Date: Jan 2006 Real Name: John Location: Canada, eh Watch: can I? Posts: 6,241	I agree with Joe in the house 100% not being a great investment. Twist the common understading of ASSETS and LIABILITIES. Most consider assets something they own, and a liability something they have to pay back. How about : ASSET = Increases in value, does not require cash flow to support. LIABILITY = Requires cash flow to support. SO, your house is a LIABILITY. You have huge upkeep to maintain it. AND, unless you sell it and severely downsized, that equity does you no good in your retirement years. My 2 cents ( albeit Canadian) __________________ Something witty to go here. Member # 293

16 November 2008, 05:50 AM	#19
sini1717 "TRF" Member Join Date: Apr 2008 Real Name: PAUL Location: u k Watch: WHITE FACE DAYTONA Posts: 632	P a n i c........................

16 November 2008, 06:16 AM	#22
gmh1013 Banned Join Date: Jun 2008 Real Name: greg Location: Tempe AZ Watch: GMT Posts: 5,703	zero it's to uncertain right now.....way to much beyond our control only control what you can control

16 November 2008, 08:33 AM	#23
Rodmo "TRF" Member Join Date: Aug 2006 Location: Canada Watch: 3 Subs/2 Daytonas Posts: 305	No debt, and cash......... Cash is King. Cheers.........Rod

16 November 2008, 11:11 AM	#25
Greenring "TRF" Member Join Date: Aug 2008 Real Name: Stan Location: Brunswick, Ohio Watch: All of them Posts: 967	Conserve cash, don't incur un-necessary expenses.

16 November 2008, 11:37 AM	#26
Bisquitlips 2024 Pledge Member Join Date: Sep 2008 Real Name: Richard Location: USA Watch: YM Deep Space Posts: 12,502	We've got 6 months expenses in cash and everything else in money markets for now. We have very little debt and will be debt free very soon except for the mortgage. We here in Missouri have not been as hard hit with our properties losing values, but we didn't skyrocket here like some of the rest of the country. Read stability. So, the jobs look secure and the financial status with us is OK. The US Dow should bottom in my opinion around 7000 - 7500. Capitulation has come on strong this last 5 months and all we need now is for the hedge fund investors to stop pulling out. That should signal the bottom. When that happens prepare for a nice 20% hop up and then a very long road back to the highs of last year. A very long road. Probably 7 to 10 years. There is opportunity here. Just my 2 cents... __________________ Rolex Yacht-Master 40mm (SS-YG / Deep Space MOP) 16623 Breitling Aerospace Titanium / 18K with UTC. Omega Speedmaster 3510.50 Oris TT1 Pro Diver Regulator 43MM

16 November 2008, 02:15 PM	#27
bodybump ⭐⭐⭐⭐⭐⭐ 2024 DATEJUST41 Sponsor & Boutique Seller Join Date: Sep 2008 Real Name: Oscar Location: Florida Watch: Me!!! Posts: 23,225	save save save save save....Cash is king!!!! Rip all credit cards and use only 1-2....and dont go to BUY AND SELL FORUM!!!!!!! __________________

16 November 2008, 09:34 PM	#28
Denny M Member Join Date: May 2008 Location: Australia Posts: 242	[QUOTE=redshirt1957;851953]Emergency fund of around 2,000. I have done well with rental property, but I always lived near the properties. When I had to move, I sold the properties. No long distant ownership of real estate for the individual. Only time I did well when flipping a home was when I lived in it. Hard to do with a family, as the place will be torn up for most of the time you live there. QUOTE] Bubba, i'm curious about your statement. Why don't you believe in long distance ownership of real estate? And some interesting contributions made, thanks everyone!

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