Money. Where do you put yours. Investing, banks, stuffing your?????

  • Posted by a hidden member.
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    Dec 09, 2008 5:56 PM GMT
    I need some help putting away my Christmas money.
  • metta

    Posts: 52691

    Dec 10, 2008 12:48 AM GMT
    I don't think that I'm the right person to be giving advice but I would have to guess that each situation is different.

    One of my neighbors/friends was just telling me that if rates drop to 4.5% to buy more real estate. She also told me not to time the market and to just buy what I think will do well.

    I don't have the assets that she does, so I have to be more careful. She can buy a new business, home, etc. on a whim.

    I'm being overly cautious right now, but I only feel comfortable with money markets and investing money back into my business right now. I have been terrible at investing in the past. I'm embarrassed to think about how much money I have lost in the stock market time and time again, starting with the tech/internet stocks crashing and now the the current economy. My home has already dropped over $300k in value in less than 2 years.

    2009 looks like it is going to be tougher than 2008. I don't think that we have seen the worst yet. But that is just a guess based on analyst predictions of higher rates of unemployment and even higher rates of foreclosures next year.

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    Dec 10, 2008 1:04 AM GMT
  • Posted by a hidden member.
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    Dec 10, 2008 1:13 AM GMT
    you have money?
  • Posted by a hidden member.
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    Dec 10, 2008 1:22 AM GMT
    "My home has already dropped over $300k in value in less than 2 years. "

    And that's why your friend is telling you to buy real estate! Values might be closer to where they should be now - in any case, if prices are low ... buy.

    With all the foreclosures and property on the market, things are selling below "value" in many places. And people will need to rent, so a modest rental property that will pay its own way could be a great investment.

    As for me, yes, I stuff my ... pockets. I can get most of my money in.
  • metta

    Posts: 52691

    Dec 11, 2008 8:11 PM GMT

    Recession seen worsening, deflation a risk

    The "nasty" U.S. recession will tighten its grip next year as unemployment rises and weak home and stock prices imperil consumers, finance firms and debt-laden businesses, a UCLA Anderson Forecast report released on Thursday said.

    Additionally, a sustained retreat in prices for goods and services is a very real possibility that would further drag on the economy, according to the forecasting unit's report.


    Retail sales post big drop in November


    New unemployment claims surge unexpectedly
  • metta

    Posts: 52691

    Dec 17, 2008 8:11 AM GMT
    It looks like we need to keep a closer eye on our money market funds

    Calculated RiskJust checked some money market funds, and for a few of them the expenses are now greater than the yield - so you'd do better with a mattress.

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    Dec 17, 2008 9:07 AM GMT
    we're already begun our deflationary spiral as nov.'s CPI dropped 1.7%,,, largest drop in prices in over 60 years.

    Just give the money to Northern Trust- a conservative wealth mgt trust co based out of Chicago and Palm Beach, or start dollar cost averaging in strong companies that have DRP/ OCP plans- Compuserve is one of the largest, or sign up for a ING Sharebuilder Acct.
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    Dec 17, 2008 3:07 PM GMT
    I work with investments - venture capital and real estate. These are perfect conditions for CTAs (commodity trading advisors) and that is likely to continue for some time. (Euromoney). A CTA makes money from price movements and in this evolving global credit crisis, there has been a huge shift in relative valuations between currencies, equities, interest rates and derivatives - so those are ideal conditions for CTA performance.

    I am also a Realtor, so I see incredible opportunities therein as well. It is a buyer's market now - as you no doubt know - a great time to identify a property and submit your offer. We are putting together a number of sales right now - even in a cooler market - because of smart buyers who see these opportunities.
  • CuriousJockAZ

    Posts: 23136

    Dec 17, 2008 3:13 PM GMT
    I would definitely be taking advantage of some of the amazing real estate deals out there right now -- especially among the foreclosures -- as there are some great deals to be had if you're a smart buyer. I've never been busier as I am right now, which tells me that the bottom of the market has either arrived or we are close -- especially with mortgage rates at an all-time low.
  • metta

    Posts: 52691

    Dec 18, 2008 3:57 AM GMT
    What? Nice thought but we really have not seen the worst yet. I love your optimism but I think that it is important to be realistic as well. You may have seen a temporary increase but I think that things will probably get worse in 2009.

    Be glad that you are doing well now save what you can.

    And this is why I can't see the economy recover in 2009....
    A Second Mortgage Disaster On The Horizon?
    Alt-A & option ARM

    Delinquent Mortgages Set to Nearly Double in 2009
  • tokugawa

    Posts: 945

    Dec 18, 2008 7:23 AM GMT
    Things on Wall Street and in real estate will probably get worse before they will get better. Many investors are moving out of stocks and into safe investments such as U.S. government securities, money market funds and CDs. There is so much demand for 30 day treasury bills (a super safe investment because the U.S. government is not likely to go into default anytime soon) that the interest rate is in the neighborhood of .001%. Even my checking account pays more interest than that.

    We may have fallen into the "liquidity trap," which means that even with a very low (or zero) interest rate, companies don't invest because they don't think it will be profitable. Keynes says that when private business is not investing (i.e., monetary policy is not working), the government should step in with public works projects (fiscal policy in the form of deficit spending by the federal government is the correct policy).
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    Dec 18, 2008 12:48 PM GMT
    I personally invest in low to medium risk mutual funds. I try to discipline myself when it comes to investing. When everybody is scared and running to the exits I am thinking of buying. When everyone is happy and investing, I am thinking of selling.
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    Dec 18, 2008 1:45 PM GMT
    I have... 30$ in an ING account. That's all I have saved. Yay grad school
  • HndsmKansan

    Posts: 16461

    Dec 18, 2008 1:56 PM GMT
    What you need to do is evaluate how soon you are going to need to use the money, if not for some years, consider whether you want a taxable event each year (thus an investment in a non qualified account) or if you want tax advantages. If you select the latter, you may not be able to access it for some years or until age 59 1/2 without some degree of penalty.

    Consider a Roth IRA contribution if it makes sense. Several things to consider including an investment in mutual funds. A great time to do so, but you need to be comfortable with that sort of non guaranteed investment and the volitility of the market. Good luck!
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    Dec 18, 2008 2:02 PM GMT
    Remember these words: well diversified asset classes.
  • Posted by a hidden member.
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    Dec 20, 2008 10:17 PM GMT
    Spend it before it's not even wiping with. Beans and water purification system for the end, the ennnnnnnnd is nigh!