Investments. Where Do You Have Your Money?

[StrawberryFields]

Originally Posted by pam

My brother was mentioning something about new tax laws and how it would affect those that make $250k or more a year. Then it was mentioned in the same conversation that had been lowered to those that make $125k a year. Well either way, certainly doesn't affect me. lol But I am curious.

See, that is exactly what I mean. Why wait when the man in charge of my money is even wishy washy about it.

[pam]

I hear ya SF.

[countrygirl66]

Just what I am doing and thinking -

If you have money in stock and don't have to pull it out for 10 years great. The stock market is a long term investment not short term. The way I see it is you haven't lost any money until you sell. Right now we are still contributing to our 401k's in stock because we are buying at a cheap rate and when it goes up we will make money. If you were going to need to take it out in 5 yrs then I would watch it closely (because it will eventually go up) and when you can live with where it is at move it. The really smart investors are buying right now. (only good solid stocks) If it is making you crazy and your losing sleep over it then stock is never a good option for you. Just my thoughts. Also by the time you hear about a great investment it is time to sell it. You have to make investments based on what is proven good over the long term. Again just my thoughts.

[Alana]

My husbands company adds 15% of whatever he makes into an investment account. So, it's not out of his salary, but extra. Right now we have it in the default plan, about 10 different stocks that it's spread out in. I really don't know much about it, I would like to learn more, but I don't have any one to 'show me the way.' Everything I've found online to explain things already assumes you know a little bit about how it works, which I don't. I'm not a complete stranger to money and dealing with numbers, I love doing taxes and do them for my parents and my brothers and sisters. None the less, I don't know anything about our investment portfolio. I have a feeling it's taken a BIG hit. I can change which 'plan' it goes into, but can't pull it out yet (not fully vested) and I don't think I can pick specific stock to invest in. I think it's more like there are 7 different plans, some higher risk than others that you pick.

So basically, 'our money' is out there some where, floating around. Oh and then I have my wad that I keep in the mattress. Mattresses are fire proof, right?

[StrawberryFields]

I agree with you Countrygirl66 but I also know that we are possibly heading into a depression soon. This is the worst market we have seen for 100 years. I wonder how long it will take to recover from this?

All we have to go on here is what has happened in the past.

[BenRaines]

I know I have rose colored glasses on but folks this is not the worst market in 100 years. The sky is not falling and this too shall pass. I have been a stock broker for over 30 years. Here are some thoughts about what has gone on before and what is going on now.

When the US experienced the Great Depression there was little government involvement until it was too late and then they had to act. There was not the information that is out there today for not only the big financial institutions but for the average consumer.

Most investors, main street, are not properly diversified in their investment choices. Ten stocks is not a diversified portfolio. Depending on when you need your money you should or should not have a stock portfolio.

Most investors, main street, that get out of the market get out when it is near the bottom and don't get back in the market until it has recovered. They lose two ways. Lose on the downside and then lose on the recovery.

If you need the money in less than five years it should not be in the stock market. If longer that five years there are few places that outperform the stock market long term.

I am open to answering any questions but know that the advice is worth what you pay for it and this is free.

Ben Raines

[StrawberryFields]

LOL Ben.

How do you think this will go now that it has been declared that we are officially in a recession? What about the depression that could follow. We recently shifted our IRA's into commodities... We have planned to wait it out and get with the upswing or recovery... In changing these funds we have also gone with a fund manager. Maybe I should just keep the news off for the next few years.

[rameumptom]

If you make more than $200K, you may have a tax hike under Obama, but it won't be until next year at the earliest. Right now, he is indicating no tax hikes for at least 2 years.

I have my money spread around, diversified. I saw this recession coming about 2 years ago, and so have had most of my money in CDs. My 401K I've left mixed, with half in stocks/mutual funds, knowing I would temporarily lose. But as long as the nation recovers, it will eventually be worth more than it was a year ago, I'm sure. That is what history of the market has shown. As long as you are not all-in on a single stock or family of stocks, and that sector is not collapsing, then you should be okay in the long run.

I have a standard with my stocks and mutual funds that if they ever drop by 20%, I automatically withdraw and place the money somewhere else: another stock, fund, CD, bonds, etc. That way, my investing risks are minimized. I can always reinvest later when the stock looks better.

For those of you not saving: why not? If you budget your money properly, almost all people can be saving away at least a little bit every year. But you have to build your budget first, and be honest in living by it.

[Palerider]

This is some thoughts from me Palerider......I am not an expert....this is just from what I have read and picked up from talking to people.....I have heard if we get the Market rolling the way it should we could eliminate some of the money problems we are now facing....this was on a talk radio show......my Branch Pres is a CPA and he has mentioned the new tax laws that Straw is fearing......a friend of mine who I attend Church with works for Wachovia....he said invest in the blue chip stocks...Ben might have something to say about this.......I just read yesterday where we are in a recession and that we should see signs of improvement by may or June of 2009......now this my question I am throwing out there....how come if things are so bad and we are in a recession....how come everywhere I go the Resturants and Hotels and stores are crowded??????

[prisonchaplain]

I confess that I moved half of my diversified 401K into the only safe option, out t-bill fund. Come the New Year, we will reevaluate.