DOW 20k!!! - the investing thread

I can't say I'm a good investor either, but when it came time to put my nest egg to work for me, I invested in a variable annuity with a guaranteed minimum income benifit (GMIB) It pays 5% annually at a minimum. There have been a few years where it went as high as 19.9%. But other years where it was lucky to have made 4%. That's where the GMIB kicks in and still pays the %5.

Since I never withdraw the full 5% interest on a yearly basis, that has also added to it's growth. I make one yearly withdrawal or in other words, pay myself once a year and budget from there making sure I have a buffer if something might happen and compensate for any bills I may incur such as telephone and electricity. Then add income, property, personal property taxes as well as insurance. I'll also add in for construction supplies and a meager clothing allowance. So I live comfortably.

Since I am disabled in the eyes of the gooberment as well as the doctors at 65 to 70% (probably more now), I also decided not to collect Social Security Disability or any Military Benefits even though I am entitled to them including Medicare. Sorry folks, I'm not one of those ever present Gimedats in the land of Entitlements. I'll pay my own way, thank you very much! So I guess y'all could say I am retired.

My only problem is, I don't have a beneficiary. I have no bills other than the reoccurring ones I mentioned earlier. That means my home is paid for as is the land it's on (paid cash) my pickup truck (paid cash) my Harley Street Glide (paid cash new off the show room floor) The only bills might be for my burial and any costs associated with that, but quite frankly, whomever could take my carcass and put it out in a field for the crows, vultures and any other animals to feed on. Or just toss me in a hefty sack and drop me in a hole in the ground or toss it in the trash for the city dump.

As a final note, the Variable Annuity with the GMIB rider has practically doubled over the course of the last 6 years.

 

I will report doom & gloom here, so hold on to your hat.
Google DJIA then S&P500. Now expand those graphs out to maximum. See a trend there?
'Nuff said. Carry on....

 

You mean the upward trend over the past 100 years?

 

Always been a day late and a dollar short.
Back in the 70's when interest rates were decent, and the 80's whenthey were through the roof, we were raising a family, buying a home, and had a tiny income to take care of it all. I used to save $5 a week, and if anyone gave us money as a gift, that too. Our mortgage on our first house was 7%, the second was 10 3/4. And we felt luck to get that low a rate!!
Fast forward to the 90's, I found myself widowed and fending for myself, but that $30,000 life insurance policy was getting good interest, then my Mother died and I got another $90,000 that I put in an annuity--then the bottom dropped out, almost immediately.
So now that I have a better job, bills paid off, and a few nickles to rub together, the interest rates tanked.
But, I continue to save, and I manage to sock away $1000 per month, but the interest is laughable. I got some CD's, 2 IRA's, the Annuity, a Supplemental retirement account through work, and a tiny pension that I hope won't evaporate before I retire. I am hoping to hold off on Social Security til 70, and just keeping fingers crossed that I won't be spending most of my time at the Senior Center to keep warm, and eating Alpo for my one meal.
Lots of my friends tell me I am "lucky"; I just think I am responsibly frugal. I guess my watch word is, "Can I get by without that?"

 

I like your style, Star Gazer!

 

That's there too, but I see a sawtooth waveform of reducing duration, higher amplitude and steeper slopes. What goes up must come down. Anyone at or near decumulation phase might consider the pattern.

 

Yeah, what HE said.

 

We also must not forget the negative effects of hysteresis, eddy currents, and flux core leakage loss, and the resultant complications associated therewith. And not withstanding, there are still harmonics to deal with; especially the fifth and seventh harmonic, which are notorious for throwing an otherwise glorious sine wave into a state of pandemonium. Guess I'll just buy a couple scratch-offs and call it good.

 

Yeah, what HE said...

 

I'm invested heavily in music media and video gaming. A little something called an 8 track tape and a game called Pong. I am hoping for big pay dividends.

 

Lost all my money in the beanie baby craze of 95(?), thought for sure they had staying power.

 

When i want a return on MY investment I go out, work and MAKE it happen. This is the only way to control your life.

 

I feel yer pain bud. I got hooked into the cabbage patch doll craze. Ended up with so many of them things stowed away that I could only come up with 1 solution to try and realize a return on my investment. Word to the wise, cabbage patch dolls make some of thee worst home made sauer kraut you could imagine. Tasted even worse than the fudge the neighbors gave me.

 

1000 a month saved at 0 interest is better than 1000 a month possibly loosing 30 percent.

 

I love my AT & T stock. 5.5% dividend and it just went from $32/share to $42+-

 

OK disclaimer. .. i got a degree in business and international economics... also worked at investment house (MSDW) in the early 90s... I can tell you there used to be a free lunch called triangular arbitrage.. I found it 2 or 3 times.. unfortunately I did not have enough capital at the time to get rich and retire at 26... but enough to start... with computerized trading nowadays that is a lot less likely to happen... I never have been a fan of funds.. too many fees for me.. I worked on da street for less than a year because my mentor stroked and died on a Monday morning.... and I had rest of day off and I was is this what I want my life to be... 20 hour days chasing dollars living in a closet.. is $$ there oh yeah.. but it was not me I wanted country and land and privacy.. you are not gonna find that on Manhatten!

But you can with study and common sense see markets trends.. I saw 2000 crash coming.. told a bunch of people.. I got out in January 1999..
it was easy too see... US govt. said if you have a computer and work or are a sub for a school, utility, bank, hospital, EMS, government or military you have to buy a new computer for Y2K... their stocks went up until their sales dropped in 2001.. I thought others would see it too and get out!

the trend I am researching now it what effect will the boomers retiring have on the market? not sure yet.. but that demographic will have an impact.. just as everytime US changes tax code...

I am a relatively conservative investor .. getting about 10% returns .. with limited risk.. in self directed 401k.. waiting.. watching.. saving .. following the rule of 72.. good luck.. play on...

 

If it does count and if you are successful, let me know!! Partner!

 

oops, forgot to add.. the DOW or DJIA, is an average of just 30 stocks that change over time.. none of the originals are in it... Started about 1880 IIRC oldest is GE but Heck Apple is in it now.. used to be an industrial average... now it's a headline attention getting thing!

 

Blackrock estimates ~136k per boomer in pre-retirement savings....that's not a lot on an average basis - but who knows how many trillions?
hard to imagine many can pull out of stocks and get closer to a normalized pre-retirement portfolio as they are playing catch-up.
This whole notion they got smoked in 08-09 is bogus had anyone stayed the course all your losses are back and then some.