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Old 10-10-2008, 10:29 PM   #71
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We are holding tight. We don't owe anyone any money, except that our insurance costs us $20,000 a year, because we have so many pre-existing conditions. All will be well when we get on Medicare, if it still exists.

I am glad we taught the grandson how to hunt, catch fish, and make a garden. Who knows what lies ahead?

I do have faith in humankind...I believe we can beat this, if we stick together.

Love and Peace...

Connie

You know, the old hippy in me still says that we can change the world, one person at a time.
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Old 10-11-2008, 07:44 AM   #72
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Made some money daytrading these wild swings. Still up about 5% for the year. I'll take it.
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Old 10-11-2008, 07:59 AM   #73
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You know, the old hippy in me still says that we can change the world, one person at a time.

Thank God for old Hippies Connie! We need more people with this kind of attitude.
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Old 10-11-2008, 07:59 AM   #74
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I worked up the courage to look at my 401K today and it is down about 25 % since August. NOT GOOD. I hopped on the phone and asked Charles Schwab about rebalancing the whole thing to reduce my losses. Actually the advisor told me that I am still in good shape and with rebalancing and time, I'll be OK. I guess this is the consolation for knowing that I have to work til I'm 70 ("only" 28 more years to go.....)
You haven't actually lost the money until you sell. Rebalancing is selling one asset to buy more of another. If you were thinking about selling stock to buy more bonds, that's a mistake.

It's funny that people (not you, necessarily, just in general) usually know that the rule is to buy low and sell high, but when the market drops people panic and sell. That's backward

The thing about CDs is that, while the money is safe, the interest paid may not be enough to beat inflation. For example, if inflation is 5% this year, and you have a CD paying 3%, you're losing 2% of your purchasing power on that money. That's why, for the long term, stocks are a better deal - the average percentage is usually more than the average inflation rate over a period of years.

Personally, though, I don't have the time or inclination to do the work of determining which stocks I should invest in, so I go with stock mutual funds. Just about everything is down right now, but that's the beauty of dollar-cost averaging I repeat that like a mantra: dollar-cost averaging, dollar-cost averaging , dollar-cost averaging ...
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Old 10-11-2008, 11:58 AM   #75
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Personally, though, I don't have the time or inclination to do the work of determining which stocks I should invest in, so I go with stock mutual funds. Just about everything is down right now, but that's the beauty of dollar-cost averaging I repeat that like a mantra: dollar-cost averaging, dollar-cost averaging , dollar-cost averaging ...
I've never made money trading individual stocks. I've had much better luck with baskets of stocks like the Q's, for instance, and holding them longer term. I do this with Etrade.

As for mutual funds I wish I had the discipline to dollar cost average. I tend to make contributions in spurts.....and always at the wrong time, it seems like. I've been happy with Vanguard as their fees are very low and service good.
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Old 10-11-2008, 12:43 PM   #76
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The thing about CDs is that, while the money is safe, the interest paid may not be enough to beat inflation. For example, if inflation is 5% this year, and you have a CD paying 3%, you're losing 2% of your purchasing power on that money. That's why, for the long term, stocks are a better deal - the average percentage is usually more than the average inflation rate over a period of years. ..
For those who have to pay income tax on their CD income, funds in a CD paying 5% will still suffer erosion of buying power if inflation is at 5%.
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Old 10-11-2008, 01:46 PM   #77
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Regardless of the inflation rate or tax consequences the bottom line on CD's is that they're more practical than stashing a lot of cash under the mattress as I used to do.
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Old 10-11-2008, 02:32 PM   #78
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As for mutual funds I wish I had the discipline to dollar cost average. I tend to make contributions in spurts.....and always at the wrong time, it seems like. I've been happy with Vanguard as their fees are very low and service good.
We each have 10% of our net income transferred automatically into retirement accounts that are invested in mutual funds. That's what dollar-cost averaging means - invest a specific amount every week, month, whatever, no matter what the price is, and over time, you will accumulate more shares than you would if you tried to time the market.
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Old 10-11-2008, 02:39 PM   #79
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We each have 10% of our net income transferred automatically into retirement accounts that are invested in mutual funds. That's what dollar-cost averaging means - invest a specific amount every week, month, whatever, no matter what the price is, and over time, you will accumulate more shares than you would if you tried to time the market.
Yes, I had my financial institution set up for monthy auto invest into my mutual funds. That lasted a few years until I stopped it. I thought I could do better by timing the market... Bad move. I might go back to dollar cost averaging.
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Old 10-11-2008, 03:06 PM   #80
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I am down 30% for the year. Yuck!!
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