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  1. #1

    Investment cash- keep some handy

    I'm not talking about the greenbacks, you should keep at least six months expenses in cold hard cash within your control.

    I mean the part of your Roth, 401K or other retirement plan that should be in cash.

    Market has dropped, a damn good bit, and will likely drop more.

    Just like in your scenario planning, have "trip wire" points already laid out in writing ahead of time so you don't waver.

    If your close to retirement, those trip wire points with the market could be points where you bail out on other investments if the market continues downward- limiting loses and cutting your riks.

    If your not close to retirement (10 years plus), then those trip wire points may be where you use some of that sidelined cash to buy stocks and funds that have fallen in price heavily.

    Already is, and going to be further discounts on REIT's now and coming up. Good long term REITs that have paid out 8-12% consistently for a long period of time.

    Already is, and will likely continue to be some further discounts on some of the oil related stocks- MLP's, etc. that have been paying out 10% or more in distributions for a long period of time.

    Always keep some cash on the sidelines of your investment account, but don't be afraid to snap up some bargains as the market drops.

    These stocks paying good dividends will also help offset any losses from not buying at the right time as well.

    My Roth account is down a bit now from a few months back, but dividend income over the next year will more than cover the current down amount. I have sold some winners when they were up and I'll try to not sell any more losers than necessary when the market is down- especially if they continue to pay dividends.

    Actually the major down portion of my Roth currently is precious metals mining stocks. Should we see a repeat of 2007'ish time period, these mining stocks may see a bump again and having bought most of them dirt cheap, I'll be looking to dump those as they pay no dividends.

    How about you? Closer to retirement and making some moves for protection now?

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  2. #2
    Super Moderator Patriotic Sheepdog's Avatar
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    I am getting closer to retirement, so I have gotten out from "the market" a couple years ago and put it into rental properties. So currently I have two long term rentals and one that I am preparing for an AirBnB in the mountains. I hope to have at least one more AirBnB in the next two years up near my other one. Still have the precious metals, and took most of my 401k and moved it into a money market acct. in early October as this time of year is notoriously a down market. I'll see what the market does in the next 1-2 months, but if housing continues to drop I may just look into another long term rental. I am trying to decide on what to do next year when I turn 62....retire or just slow down...I still love what I do, but would like to get some of what I have paid into SS before it goes belly up....
    Protecting the sheep from the wolves that want them, their family, their money and full control of our Country!

    Guns and gear are cool, but bandages stop the bleeding!

    ATTENTION: No trees or animals were harmed in any way in the sending of this message, but a large number of electrons were really ticked off!

    NO 10-289!

  3. #3
    great thoughts...
    i've learned that very few folks look "down the road" or save for it or plan for it..
    ---
    a little tale..

    way back in time the stock market the banks and all things financial were in a tail spin.
    a pretty large ins. co. was using Prudential for their 401ks and their retirement funds...
    great big awesome rock to hold your funds... right?

    fella got drift that pru was applying for tarp bail out funds... ??? shock ???
    fella called his employer and they said that they were in constant daily contact with prudential and had heard nothing about it... false accusation they told fella..
    so away from prying ears, fella called pru that night and got customer service (actually 2 reps) and they started off nice, then got haughty with what a crazy idea that was...

    fella did some digging and found references... so fella called employer and pru again asking for supervisors in customer service... the employer got upset that fella brought it up again. they had called to check and "false claim" pru supervisors were a little hesitant and not straightforward (a good chance that someone is lying or evading) but denied it..

    to cut this short this process repeated itself 4 times to pru and 3 with employer... employer threatened fella with disciplinary action if he persisted with this false info, as it would undermine the confidence of other employees!

    fella started reducing contributions to 401 to minimum..
    and only whispered subject to best of friends and coworkers.

    about 3 months later human resources at employer called and started fussing at fella. then cooled down and said "how'd you know?" wasn't anything secret. just a little digging. HR confirmed that they had found out the statement was true...

    bottom line...
    how do you trust your broker or manager at contact at any big (or little) financial institution?

    and here's the rest of the story that pru finally told fella years later...
    pru did apply for tarp bail out funds and got approved!! but never got any $$....
    not long after the pru episode...
    employer changed the retirement funds to another company and the 401k money...
    fella asked ... was this change made because pru lied to me and yall? they wouldn't answer.
    something evasive like.... when we do something like this a lot of factors are taken into consideration.

    rr

  4. #4
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    10 years ago, I changed my 401K to 100% guaranteed fund; gains were small but steady and I never lost a dime. Now that I've retired, my account keeps growing slowly but surely.

    I encouraged my husband to do the same as he's planning an early retirement in 2019, but he didn't listen and his 401K is way down. He wants to pay off the mortgage next year, but if he doesn't change his investment strategy, he won't have enough left to do it! He independently invested in a lot of stocks that tanked and he lost his shirt, but not his optimism that someday they'll pay off. I might make him work another year out of spite Without a mortgage, we would be debt-free and just have to pay for utilities, groceries, taxes and insurance. That would make a huge difference in our quality of life. One thing is for sure - I'm not going back to work. We have sufficient cash-on-hand (or at least in our bank account) to carry us through any emergencies, but unless something changes he may have to forego that new truck he's been eyeing.

  5. #5
    CAPSTONE MEMBER 610Alpha's Avatar
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    I had closed out my positions with SPY (ETF) and AMD, made money on both thankfully. AMD will be one to watch IMO, they are gaining market share on INTEL and they are launching new Desktop and Server CPU's in '19.

    I have two that I am holding on too, one is GE....bought it at 17...doh.

    The other is a medical device company that has a major piece of tech that is on FDA fast track but is still pending FDA approval. Fingers crossed that it gets approval and the stock jumps.

    Hoping for some of my winners to go on sale so that I can buy them at rock bottom prices.

    Anyone look into Peer to Peer lending? I am seriously considering adding some of it to my portfolio. You can diversify pretty well from my understanding.

    https://www.goodfinancialcents.com/l...and-borrowers/


    I am also wanting to get into rental real estate but following John Schaub's method of seller financing.

    Anyone listen to Bigger Pockets podcast?

    or John Pugliano?

    or ____________?
    "It's a trap!!!!" -- Admiral Ackbar

  6. #6
    Super Moderator Patriotic Sheepdog's Avatar
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    Quote Originally Posted by 610Alpha View Post
    Anyone listen to Bigger Pockets podcast?

    or John Pugliano?

    or ____________?
    I have listened to some of BP podcasts over the years...a lot of good info there, but be careful. Stay FAR AWAY from Clayton Morris as there are many people that have lost everything going with him (Morris Invest). I have heard many reports from the owners that put a lot, and I mean a lot of their retirement with him only to lose it all. He is a salesman and sounds good but oh the true stories I have heard.....
    Protecting the sheep from the wolves that want them, their family, their money and full control of our Country!

    Guns and gear are cool, but bandages stop the bleeding!

    ATTENTION: No trees or animals were harmed in any way in the sending of this message, but a large number of electrons were really ticked off!

    NO 10-289!

  7. #7
    CAPSTONE MEMBER 610Alpha's Avatar
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    Quote Originally Posted by Patriotic Sheepdog View Post
    I have listened to some of BP podcasts over the years...a lot of good info there, but be careful. Stay FAR AWAY from Clayton Morris as there are many people that have lost everything going with him (Morris Invest). I have heard many reports from the owners that put a lot, and I mean a lot of their retirement with him only to lose it all. He is a salesman and sounds good but oh the true stories I have heard.....
    I have heard of some people that bought turn key properties from Morris Invest have had issues but not people that had invested with him.

    I know Cardone Capital is big into Apartment Syndication.

    John Schaub seems very well grounded and avoids a lot of the risk by not getting traditional loans.
    "It's a trap!!!!" -- Admiral Ackbar

  8. #8
    I am also wanting to get into rental real estate but following John Schaub's method of seller financing.
    I always thought this was the better way to go versus renting for property.

    Got a link to what your talking about?

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  9. #9
    CAPSTONE MEMBER 610Alpha's Avatar
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    http://www.johnschaub.com/

    Interview:

    https://radicalpersonalfinance.com/b...chaub-rpf0119/


    Review of his class:

    https://radicalpersonalfinance.com/2...y-john-schaub/


    I own his book:

    "Building Wealth One House at a Time" - one of the big things i learned was how not to get the 2am calls.


    his approach protects your personal residence & risks only the down payment. It allows you to build up equity and pays the owner more $ because they get interest during the time frame of payments to them.

    All the other guys out there are getting traditional loans or teaching people how to leverage the equity in their personal residence to purchase rental property. I will say that Bigger Pockets has a great tool for analyzing properties and helping an investor in determining if it is a good fit for them. That tool is worth its money imo. I have seen webinars of it from Brandon at BP.

    The one thing I would like to see his contract templates with bogus examples, I don't want his actual numbers but what all he negotiates on.
    "It's a trap!!!!" -- Admiral Ackbar

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