A few dollars, or a few hundred dollars. Doesn't sound like much, but when you're talking compound interest over many years, it can be huge!! Or could make a difference of when you can retire.
Anybody making any moves to protect themselves from inflation? I made my whole IRA contribution for the year already. 1/3 of it hasn't been allocated to anything yet. There's a good chunk of money in my credit union gaining essentially zero. I've started moving it into TIPS and metals. Also, I've been putting off a kitchen remodel and I need to get moving on that. I have the $ and the job will only get more expensive.
I am working with a new financial planner/ investor… his plan outlay is way different than the one we are currently using. He is the first one to go in-depth about income, taxes, and long term care abilities after retirement. I have high hopes…
Dave Ramsey and Glenn Beck. A clash of the 2 extremes. (Either way, God is in control, so don't sweat too much. Take all your worries (including financial) to Him.)
the firm that handles my agency pension has no good strategy. Everything will lose money next year. They are recommending delving into private equity game . They need to earn at least 6% for the fund to keep from sliding backwards my Ford stock has been up over 130% from the time I bought it. It’s only up 85%. Cruise ship companies are wat down, and we’re starting to rise until the new President took over. Everything I have is going to have to stew a couple years.
Everything is going down the toilet under this new cabal. I don't agonize over my investments. No point. I invest very conservatively always.
Expect it to do a steep slide. Fords posted a (I think) 130 million dollar quarterly loss due mostly to their investments in electric cars and the 'Rivan' pickup truck that no one is buying. Last time I checked the 'Rivan' stock was close to junk status. My BIL is a big wig at their headquarters in Dearborn. He told me Fords is looking to cut staffing to stay afloat. Way too extended presently.
Nothing more than talking heads to me. I pay zero attention to them. Everyone has an opinion today, me, I follow my instincts.
Your issue is the deflation of the value of the currency is making that interest gain basically negative. Myself, I prefer precious metals. Even metals like steel and aluminum hold or increase in value (as seen by the tripling of costs to purchase). Real estate is still one of the best investment there is but you have to have the capital up front to get involved. Buying real estate and financing it only keeps you even as you pay off the notes and accrued interest and the current upward trend in the prime lending rate only makes it worse. Having said that, the prime needs to rise and rise a lot to curb the Fed from printing money willy-nilly. Too much money chasing too little goods equals inflation, which is what we have presently and inflation is an egregiously subtle tax on everyone, be it a wealthy person or a poor person. Don't matter. The issue is, the people on the lower end of the monetary scale, suffer the most.
Actually, at the current interest rate of return versus the rate of inflation, you ARE actually paying your credit union for the priviledge of them corralling your funds. The worst possible place to have funds is in any savings account in any bank or credit union. I keep a couple grand in our CU account just as a 'slush fund' in case something comes up. Been doubling up on mortgage payments on my rentals (against the principle) because that is money well invested. The farm is paid for, all the land is paid for, all I have left is 3 rental properties which are all occupied and all have been almost paid off. I really dislike paying interest in anything, real estate included. When I purchase new farm equipment I always strive for the lowest possible interest rate. preferably 0 percent.
This is Sad but true, being uniformed has a high cost. Probably why university education was seen as valuable in the past.
When we built our house 30 years ago my wife wanted to go with a 30 year mortgage, I told her 15 year or she wasn't getting a new house. Ended up paying it off in 13-1/2 years. Scary that otherwise we would just be paying it off now! Gary
Farm has been paid off for years. I think I said previously, you really don't own your abode even if it's paid off. You don't pay your real estate taxes, the county forecloses on you and sells it. No breaks ever. The gummit is always extracting their 'pound of flesh'. Gotta keep the political wheels rolling.
Same story here when we bought our house. Miss July wanted to go 30 yrs to keep the payments low. Once i showed her on paper that the interest was double going from 20 to 30 years she agreed to go 20. We paid it off in 18 years. The money i saved on interest, I spent frivolously...
Bought some ibonds (10K) in April with some of my cash reserve. I have some cash set aside so I don't have to sell market positions in a down market. We'll see how long this temporary "transitory" inflation persists. AT least that 10K will still be mostly worth 10k for a while. I really don't think there's much you can do beyond trying to maintain a decent passive income from savings that hopeflly stays abreast of these higher inflation period(s).
If I had any extra cash money sitting, I would throw it at established farm land. There has been no slow down on home and farmland sales in my area. Prices are still rising and homes don’t sit empty long.
My property taxes went up 15% this year. Everyone is pumped about home values going up until they get the tax bill.
Putting off an addition, half way through a bathroom remodel, so not much I can do about it but finish. Im still looking to buy stocks and continue to put money in my mutual funds as the market turns. Not trying to find the bottom, just keep plugging away. Im 20 years from retiring, so I have a little time.
Why most lending institutions roll the RE tax in with the monthly payment. They pay them for you plus they get to use the overage you pay for their own investing. Remember TR taxes are paid once or twice a year, not monthly. Just another scam you get fleeced for.
