My Retirement Plan

[glgdiggs]

I am sorry if I seemed to be on a rant, that certainly was not my intention, but this subject changed my retirement plans completely. It brought me to TractorByNet as I aquired land and needed the tools to manage it. I have spent the last 12 years looking at the topic, doing some significant research and have come to my own conclusions. It changed my investment strategies, vehicle choices, and how my home is heated, all for the better in my opinion. My rural retirement and peace of mind it brings is the direct result of my understanding of the long term consequences of peak oil. I was not highjacking only commenting. Again my appology for offending anyone.

 

[riptides]

....
So I don't get why people keep saying STAY INVESTED, when NOT STAYING INVESTED made me a few hundred thousand dollars.

...

Like everything else, timing and goals. Who has a goal for their dollars? Over what period of time?

I bailed on certain mutal funds, even when my fund manager said not too. Why? I had reached my goal.

 

[smfcpacfp]

I had a huge argument with my investment professional that I pay HUGE money to manage my funds who pretty much said the same thing. But right before the 50% drop in stocks I told him to take all my stocks and go to cash - his argument was like yours, NO you should stay invested. After arguing back and forth he sold everything to cash.

The stocks dropped by 50% but I kept 100% of my cash contrary to the professionals advice.

So I don't get why people keep saying STAY INVESTED, when NOT STAYING INVESTED made me a few hundred thousand dollars.

The poor investment professional who does one thing - make people money, almost cost me plenty....and on top of that he charged me to lose money.

Now I have twice as much money as I WOULD have had after the drop to buy back the same stocks but at a 50% discount.

Anyway just my 2 cents.

Few people have your insight as to the correct time to buy and sell. You should become the investment professional! The world will beat a path paved with money to the door of the person who can corrctly predict the future.

 

[foggy1111]

I do agree that if you can call a turn in the markets and get out...and then back in at an oportune time you are better off than the masses. However, now you have a second decision to make....when to re-enter the market. With the recent run up in the markets (and some good diversification of stocks, bonds and cash) I am currently about 25% off from the peak about 2 years ago. Painfull???.....quite...but by no means unexpected as I have lived through many ups and downs....and I expect alot more volitility over the next years. Meanwhile if your now in cash...when are you going to re-enter?

 

[ultrarunner]

Maybe it's my peasant/farmer heritage... I have a hard time trusting things I can't see... and even more putting faith in people I don't know... especially those in the money business.

God Bless you if it works for you...

Most of those I know with comfortable retirements have a Real Estate Component in the mix... it might only be the building they now rent to the buyer of the business they sold or it could be timber or AG land and even commercial.

I do not lots of people that have lost much if not close to everything they have in the market. Some would say they didn't invest right and that maybe... yet it's still a lost they may never recover from.

I also know a few that seem to do real well... it's something they enjoy and they move money into and out of the market and I can't argue with their success.

An old guy told me many years ago that a fellow can get by OK with 5 rentals... either a 5 plex or 5 single family homes that are paid for and rented...

 

[Patriotic Stabilist]

Real estate is a nice addition if you don't mind the work. Hubby can do all the fixin', I can do a lot. Since I was an accountant, managing the money and the tax issues are no problem for me. I also got a real estate license so I would know what I'm doing, in buying and selling, though I'm inactive, didn't like the less then honest salespeople so got out quick, but it was a good education. So between hubby and I it works well, for us its something we enjoy, to take a place that is a dump, but structurally sound and make it back into a nice place again. Gives you a feeling of accomplishment.

 

[EddieWalker]

There are not new massive oil reserves being found every year. The last "massive reserves" were found in AK & the gulf of Mexico 30 years ago...

What about Brazil?

Brazil's giant offshore oil discoveries

I'm not the only one who has doubts about the experts claim that oils is a limited quantity.

Discovery backs theory oil not 'fossil fuel'


There was the discovery of oil in the Dakotas that came out last year. Then there was a big oil field discovered in the arctic ocean a few years ago. How much oil is off the coast of California? It's reported to be significant. What about Florida? The Chinese are talking about drilling off the coast in International waters to get the oil that our politicians wont let us drill. Cuba is drilling in the Gulf, near the Keys because we're worried about the environment, yet their isn't a single case of an oil leak off an oil platform. Even after all sorts of Hurricanes, nothing!!! In fact, the platforms increase sea life.

Did you see the article about the bugs who excrete crude oil?

http://www.timesonline.co.uk/tol/news/environment/article4133668.ece

The verdict is not in on oil. In fact, it's not even close. Nobody knows for sure where it came from, or how it was created. There are allot of theories, but that's all they are. Don't take a theory and try to prove it. Instead, look at the theory and try to see if it makes any sense. For me, the dinosaur theory is full of holes. I don't believe it.

Kind of like global warming. That's been so discredited that they have now changed the name to climate change. So now that the planet has been cooling for the last decade, they can change their theory to anything they want and make up more silly science to support their theory.

Eddie

 

[Patriotic Stabilist]

I don't know but my husband works in oil and gas, they have lots of work coming up. He thinks his next project will be in Saudi, Angola, or New Guinea, they have other jobs too. Now whether they will still be available when he is done with this one we shall see. He said they just took one superintendent to a job that was almost age 70. These guys are dying off and they didn't develop people to replace them. He has 3 buddies over the last year that have died or are unable to work, and they are younger than us. I'm 63 , he will be in August. Thank goodness he and I are still healthy. We think its due to hard physical work. That's one of the reasons I do all the mowing, plant a garden, and work on houses. If I just sat down I would be big as a house and in misery with aches and pains.

He takes no meds other than vitamins and that stuff for your joints. Has good blood pressure and heart rate, is somewhat overweight but not obese. We are both like that. My blood pressure is usually 116/65 or less and I just take stuff for arthritus at times and for my sinuses. We are really fortunate. We both had blood work done this year and are looken good. We do have colonoscopies done every few years as we have both had polyps.

And we've spent a fortune keeping our teeth. I just got the caps for 2 implants I've had done. With getting the old bridge out, a bone graft and now the caps, took almost a year. I finally can chew again on both sides. They feel like your real teeth. I had at least 3 bridges on that side and they wouldn't stay, so finally went with this. But its very expensive to have done, I didn't want to spend the money, but hubby thought it would be 100% better than a partial and I can't disagree.

 

[skidoo]

Retirements will likely be re-defined in the upcoming years. The fact that when the worker to retiree ratio gets to 2 to 3, the average retiree may not be comfortable and the worker will soon get tired of giving such as high percentage to support a retiree. Doesn't matter how many dollars involved. The value of the dollars will change until a balance reflects the ratio.

Retirees will likely need to continue working at least part time. That is how I intend to do my retirement. Not counting on SS. Getting that would be gravy. Not counting on stocks. Owning your own business where you can decide when or if you work any particular day can help.

And then, aiming to have the house paid for and no debts will go a long way if you have some land too... Being as self sufficient as practical will help one survive the turmoil. But, then being self sufficient takes a lot of hard work; something one may not be able to do long into a retirement. In that case, downsizing ones needs will be key...

 

[Richard]

I tend to stay out of these topics since it can usually lead to nothing but a headache for me as well as sometimes having someone jump me for "soliciting" when in fact, I've only been trying to help and give back to a forum that has given so much to me over the years.

My background just so you know...

I've been a financial advisor, stock broker, investment advisor, registered investment advisor representative...what EVER you want to call me, for 23 years now. I have helped start and managed the investment center for a bank here in Knoxville, another bank in Sevierville and yet a third bank in Athens (TN). I have also run a small local broker/dealer for 5 years, supervising the business and sales of other reps. I have numerous registrations that to some mean nothing and to others, mean only slightly more than nothing

I have accounts with people where some of them listen to everything I say and other accounts where they don't listen to anything I say.

I have some accounts that are actually UP over the last 12 months. Meaning, the entire market decline has missed them AND they are up about 11%.

I have yet another account who is taking roughly 10% of her value out each year to live on, yet her account balance over the last 5 years (including the past 12 months) has stayed within 12% of the SAME value, even AFTER her distributions (IRA) are accounted for. Meaning, go back 5 years and have a value. Her account has been no less than 12% of that value for 5 years even while taking out about 10% each year (not always 10% for full disclosure)

I also have an account with someone who sat in my office 15 months ago or so, I strongly urged him to do as I was doing and move to cash and if not, at LEAST further diversify some of his holdings (he inherited a large account when his wife passed away and he's "married" to her holdings). He refused to listen to me and he has LOST over a million dollars.

I only mention the above good/bad stories to be above board and say I have experiences with both sides of them and am not trying to only say something 'good' to sucker someone.

With all that said, there are indeed some things you can do to protect your money while also garnering a decent rate of return. I'll let someone else argue what is decent.

There are also some things you can do (at least here in Tennessee) that will garner you income while at the same time, avoid Tennessee's state income tax. This same item will be taxed at the federal level but will have some 'tax favored' component in it.

You don't HAVE to be bashed in the head with your investments however, if you are already bashed, then like being pregnant, there's not much anyone can do until the process is over.

The best thing to have done was to avoid the problem in the beginning. Now that you are in the boat you are in, you need to re-evaluate not only what you are in but what you might do next.

I won't get into details here so please don't ask. I am ALWAYS happy to help my tractor pals since I've taken SO much more out of this site than I could ever put back in. For those one or two people who think I'm here fishing around for clients, I'll never change your mind so I won't try. Otherwise, I'll point out that I'm only registered here in Tennessee (well, ok, and Ohio, Georgia, Alabama) to do business so if you are not in one of those states, then you can rest assured that I'm not going to try to sell you anything because I CANT!!

Here's the offer...

If you have any questions in the investment world, I would be more than happy to give you my opinion and/or suggestion as to what I think you might want to contemplate doing. If you live outside one of the above states, then you can breath a sigh of relief and know I'll be upfront and unbiased since I can't sell to you anyway. If you ARE in one of those states, then don't email me if you think I'm being a sleezebag here by making this offer. Or, take me up on the email and see if I'm not true to my words.

I would want it done via PM's or email or heck... you can even call me. This way it would be private and you can have specific questions answered.