The feeling is mutual. There is no way we are going to agree on everything (especially when it comes to politics), but you guys are AWESOME. I have enjoyed and appreciated your information and advice more than you can imagine. This has been one happy family. We really do need, one day in the not too distant future, to all get together for a long weekend of fun, relaxation, and story telling. We could meet here in Des Moines, NJ, or in CA. How about making a commitment for some weekend next summer?
I can tell you right away that if we meet in Des Moines, maybe the best time would be around the time of the world famous Iowa State Fair which runs for 10 days in mid August. You guys on either coast need to get educated by visiting the various livestock buildings/exhibits . Seriously, there really is a lot to see and do at this Fair. It is huge. My sister is in fact visiting from MA to see the Fair next week and so is my daughter and granddaughter from MI. The one thing I need to tell you is that compared to your incredible homes, mine is rather modest. So, from a selfish standpoint, I would rather visit NJ or Malibu . What do you guys say? Can we make this gettogether happen?
around the time of the world famous Iowa State Fair which runs for 10 days in mid August.
If it is anything like the Minnesota state fair it is big. I spent 4 days at the MN fair in 1978 and did not see all of it. Lots of fun for the whole family.
It is at least as big (I think bigger) than the MN State Fair. They once made a movie based on the Iowa State Fair. You will never guess the name of the movie....Yes, it was called State Fair. The movie was very well done and it was a rather famous movie.
I am sure I saw that. Must have been a long time ago. I know several fairs around the US want to be the largest.
Don't believe Yahoo. They say Texas then CA. I have been to the CA state fair and it is not as big as the San Diego County fair. LA County fair is big. Not in a league with MN State Fair. I am sure Ohio and Iowa are bigger than most.
Two different criteria. Attendance and physical size. I consider the largest as having the most stuff to see.
Thanks for the info on gold investing. I have been watching GLD for some time, but just haven't pulled the trigger...yet. I can't decide what our next problem will be, inflation or deflation.
I for one would like to know the guys that I have been thinking about all these years, and if we were to have some monumental dollar making thing, I`d love to go to Spain, charter a decent jet, and treat everyone to a visit to Jose .....Even if I don`t get to meet you all in person, I am grateful for what I do have...Tony
You are a wonderful person. I'm headed for your neck of the woods tomorrow and will again look at real estate on Pawley's. But I'm still 1-2 yeras away from buying. In the meantime I've got a great condo at the Margate Towers in Kingston Plantation at the northern end of Myrtle. It's one of the most upscale condos there, and heck a driving vacation is so cheap why not stay at the best. Do you know it? Looking forward to my annual great filet at New York Prime.
Charlie, the LS is wonderful. I'm still discovering things. While they w'ont let you dial directly off the touch screen, the voice recgnition is amazingly easy and you always have your 18 most important speed dials that you can touch screen anytime you are driving. Also, they have finally allowed you to change phones while driving, Slowly but surely they are reaching the point of allowing you to hit those big phone numbers on the nav screen to dial. As an accountant I've been hitting numbers bl;indly on the tiniest calculators. Rarely do I ever get a number wrong. Those numbers are 10X the size of my calculators and they w'ont let me do iit. It's the one thing I hate about Lexus. Also they've finally gotten rid of the "I accept" now and it goes right into nav mode if you just ignore the show map that initially comes up. The car has a weather warning also but it'll tell you a sprinkle is severe weather.
Tag - taking the GL and still loving this truck everytime I drive it. Had it serviced today. I hope MB gets to 50% of the Lexus nav technology because I will definitely take another GL next year.
I haven`t been up Myrtle Beach --Pauley`s--in a long time, and thing have changes so I`m don`t know about Kingston Plantation......A guy named Craig Wall and family were the big shots up that way, and owned alot of Myrtle Beach in my day.....Ask around and see what happens.....I sure agree with not skimping on where you stay, and further even if you did skimp, it would cost alot......Have a careful drive and a fun time, and if you by chance get to Charleston come by...I`m in the phone book, and not at all concerned about anyone coming by.... Tony
I'm to receive a portion of a small trust within the next couple of months and am at a loss as to where to put it. The closed end mutual fund, GHI & the stock, AEE, I plan to keep as is. This represents about $27k. The rest, about $50k, is where I have a problem. The wife likes tax free muni bonds which she has herself or possibly an fixed annuity. I'd like to add to my AT&T position and buy another 800 shares to get to 1000 shares. I'd personally like to make some money, not necessarily tax free. I will be officially retiring on 1/2/2011 so we'll be in a lower tax bracket from here on out. Thus my dilemma.
Where should I park the cash. This is $ that we won't be needing for awhile, since I'll be getting my government pension & the wife will still be working in her CPA company. I'll only be 56, so I won't be able to touch my Roth IRA or my TSP account with Uncle Sam. Will I also be able to move my TSP account to my Fidelity Roth? I'd like to consolidate things a bit also.
I know it's not a huge sum, but I'd like to make it work. I'm not a risk taker...a more conservative investor if you will. Any direction from the guru's here would be greatly appreciated...I'm at a loss as to what to do!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
It's my opinion that you have enough factors here to possibly warrant a little chat with your accountant (which should be a piece of cake given that your wife works with a CPA company)... not to give you investment advise necessarily, but to clarify the tax consequences of your investment options, as well as to clarify your income requirements now that you will be retiring very soon.
Once you've determined the option that will have the least tax consequence, you can then go about making more specific choices. For example, if you were to choose certain funds, you might want to take the time to make sure you select funds that have a proven track record... weigh out the balance between the fund's performance and level of risk. Some are more speculative, and focused... meaning that if they only invest in a specific sector, then the fund's performance is tied to the market performance of a particular sector.
Sometimes the market favors certain types of investments, and sometimes it destroys them. For example: energy , small caps, mid caps, large caps, emerging markets, international, technology, natural resources, precious metals, etc., etc.
Also, I am wondering just how much control you will have over your investments, and what kind of "fees" you will be subject to. Be careful of paying too many fees. And be careful of annuities. I don't want to talk too much about them, but I don't like them at all, and it's my opinion that they are generally a rip.
Tax-free is less of an advantage if you go to a lower tax bracket, as you indicated you would be with retirement, so you probably have your answer on that one.
For what it's worth... I believe that a mix of stocks and bonds (OK to include some stock and bond funds) is typically the best way to go.
The bonds will provide the fixed security while the stocks have the potential to offer larger returns... but the market is clearly volatile, and you have to be careful. Sounds like you already have some bonds, which is very smart during retirement, so if I was to make a recommendation, I'd have to go with stocks... but keeping in mind your retirement situation, I think you would be very wise to pick quality stocks that pay dividends.
Yes, I like dividends so I've been adding to my AT&T position and will get it to 1k shares once the check comes in. Like your advice about the bonds, as I don't mind getting taxable bonds with the higher rate of return. My wife is an independent contractor with her own small CPA practice but she's quite conservative to say the least. Whatever investments her folks left her haven't been tweaked much but I know she has muni's and some fixed annuities in her portfolio. But I don't get involved with "her stuff".
She's reluctant to give me portfolio advice so I've been winging it with some help from my Fidelity folks. Any advice on some good quality high dividend stocks? I've already got AT&T and will be inheriting 476 shares of AEE. Thinking VZ and ED would just be duplications of what I already own. So really need some suggestions. Figure I'd put 1/2 into the stocks & 1/2 into the bonds.
As always, thanks for any and all advice...Tag you really are a very special guy to help a real newbie like myself, who's a bit overwhelmed by all this stuff!!!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
Sandman, one option that many overlook is preferred stocks. They are stocks but they operate more like bonds. Very safe and conservative and pay a nice dividend. I recently had a munie bond called and bought some Wells Fargo preferred stock. The symbol is WCO
It is taxable and the current price is $27.99. per share. It pays a quarterly dividend of $.539 per share and that works out to a return of around 8% annually. The stock was issued at $25.00 a share so it has appreciated some.
The first call date is some time in 2013 and at that time Wells Fargo could opt to buy your shares back for the issue price of $25. a share or just let it continue. Of course you could sell it at any time before that at the going rate. It is not apt to appreciate much more than the current price but, effectively, it will never go below $25.
WCO is not the only choice out there in preferred stocks and some of them have a more favorable tax treatment, etc. It is just the one that I settled on. Good luck and if you do have someone advising you ask them about WCO.
Did go to see an advisor whose radio show I listen to daily and he recmmended AT&T preferred stock as a good investment, as he knew I like AT&T overall. He charges 1%/year for him to manage an account but since my account will only be getting up to $125k or so, I declined his offer at the time. The wife also thinks I can do this myself since I'll be retired soon. My gut says to go with him, but that yearly fee seems a bit much for such a small account. Also, can I just purchase preferred stock through my Scottrade account? A friend told me about TradeKing and wants me to transfer over to that brokerage. Are they as good as Scottrade?
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
They both get good reviews but I think Scottrade will give you more options. They have internet trades and local offices so you would have the option of talking to someone eyeball to eyeball.
Yes, you could purchase preferred stock thru Scottrade.
My local office is like 5 miles away so I'll stick with them. I take it that the preferred shares cost more but that's to be expected because of the pecking order. I know the common is like $26 and change right now. How do I find the preferred price ?
Please excuse my stupid questions with investing...I plan to take a class or two on investing once I retire so I can learn what I need to know. Still not sure if I will turn over my portfolio to that financial planner who wants 1%/year. Regardless, I still need to know what's going on with my $!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
The internet is your friend!! There are many, many sites where you can do free research, etc. One of my favs in Yahoo.com. Go there, click on finance then just follow your nose ! You can type in the stock name or symbol and by clicking on various options get a ton of info. The summary page gives you current pricing,etc. You will catch on in no time.
IMHO, this market is stuck. But it's also poised. Stuck because of the economic data, and because of the Obama administration's policies, which inject uncertainty. Small business and consumers can't endure too much of Obama. They will rebel at the voting booth before too long. That's why Obama is trying to buy votes. The tax-and-spend mentality is nuts, and most investors know this as well. Even some big businesses are seeing a downturn ahead to the recent growth spurt that was short-lived. Short-lived because of Obama's policies.
That all said, the market is also poised because it's been stagnant for soooo long that once there is finally enough solid economic data, the market will rally, and rally hard.
The key here is patience, and be ready to buy when the REAL rally comes. Any rally during poor economic data won't hold, as we've seen numerous times. It ultimately sells off.
In spite of Obama, there will finally be some improvement in the future, as Americans and American businesses figure out how to navigate through a more socialist type of environment, with a judicial system that doesn't totally honor the constitution. In any event, one day American businesses and consumers will prosper again, and when that happens, be ready to buy in a big way.
I am waiting... and hopeful. Yet, sad about what is happening to America.
I think this is one of your best posts., and certainly phrases what is happening at this point in time.....Back in my time when I was a financial advisor, the thing that was most important for a younger individual was that investing was not a get rick quick scheme, and the disciplined spending was what made for future savings, which over time was what enabled a person to build capitol...Then Compounding....I am afraid most everyone has lost sight of that rule, and it is a shame......I myself am not above this and I need to remind myself once in a while......By sharing these thoughts I am doing just that Tony
All the advice y'all give out is greatly appreciated especially by me. I've gotten into the investing game a bit late in life due to some small inheritances that I've received/and will still recieve. I know that I don't want to risk my principal so I've got to be more conservative than most younger investors. Not that I'm old by any stretch...will be 56 soon, but the amount of $ I will eventually have is not really awhole heck of a lot...might total to be $120k or so. I've just got to realize that i don't do risk very well and the wife wants me to keep the principal in tact, so my choices are limited.
But I want to learn and will do my best to maximize the value of my portfolio adjusting the %'s of stocks, bonds & cash as necessary. So I look forward to reading this forum for a long time to come!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
One thing to always remember is that your money is just as important to you, as another person`s money is to them------Ask others for help but you use your own brain and if you don`t understand something --don`t do it---and don`t give other professionals the benefit just believing they know more than you...Use you own brain...Tony ps I think I remember you from a while back?
Would only make an investment in something that I fully understand...that goes without saying. Yes, I was here a while back but now that I expect the rest of the $ to come to me, starting my research as to where it should be put to make the most of it financially speaking. Luckily this is $ that we don't need to live on so I can afford to put it away in certain vehicles that can work for our future. Thus my uncertainty as to what to do.
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
I`m afraid this could turn out like the fable `Tar-baby` in my responding, but I would like to help if I can
.....In this day and time I don`t think anyone---No one--really fully understands what is going on with either companies or say bonds....This is due to the massive changes going on in government and the power of computers, along with a more mature country...and the non enforcement of regulations etc etc....Even what use to be `blue chip` companies have gone bankrupt or are close...Example GM EK, and say just look at the value of GE, one of the finest ten years ago....KO was the same price it is today ten years ago...at least four ceo have come and gone with hundreds of millions of dollars in compensation from ko, and the lowly stock holder has gotten around three percent return each year...That hasn`t kept up with the inflation rate....
We almost had a financial melt down a couple of years ago, and then a sharp recovery..many people were and are severely crippled.. .We are all very fortunate to have survived that misfortune....and now there is concern we may re visit poorer times.......All any of us can do is keep informed and live our own lives --don`t believe the spin-- and always realize any financial decision can be wrong in short order, so act accordingly......
On a more optimistic note , some people on this board have been very astute and avoided mishap, reorganized, adjusted , and are a good source of information....That is all right here in past posts, so my advice to you would be to re read the last couple of years worth of these posts, here and on the `luxury lounge`....A good group of caring people....Tony
You mentioned annuities. My wife bought into 3 of them at $100k each. She was told they would provide her with income and leave the original amount safe for the heirs. Sounded good until the market went South. She realized they were taking down the original amount to continue the monthly income. So be very careful and get a second opinion if you decide to go that route. We have taken one out paying the penalty. It is in a Putnam bond fund paying 7.5% and relatively safe. Due diligence is the key.
There is always some positive which underpins a march to the upside....
Edward Meir, a senior commodity analyst at MF Global, said oil prices will likely continue to be supported somewhat by the prospect of hurricanes in the Gulf of Mexico over the coming six weeks.
"After that time, all bets will be off, as the 'hurricane prop' will start to fade, making the markets increasingly vulnerable to the downside, especially given the current macro environment," Meir said.
Oil industry analysts Cameron Hanover have even warned that crude prices should be substantially lower -- below $35 and potentially as low as $10 a barrel based on the weak state of demand.
"Prices are near $75 instead because investors -- gargantuan investors -- are pricing oil more in terms of gold than in terms of the market's history, the euro, the dollar, or supply and demand," it said.
"It is good to see oil prices sell off on Thursday but it is a deck-chair off a cruise ship. Prices should be substantially lower, based on record supplies during a recession with no timetable for recovery," it added.
I'll save enough money on energy to go on a cruise....finally!
Edward Meir, a senior commodity analyst at MF Global, said oil prices will likely continue to be supported somewhat by the prospect of hurricanes in the Gulf of Mexico over the coming six weeks.
"After that time, all bets will be off, as the 'hurricane prop' will start to fade, making the markets increasingly vulnerable to the downside, especially given the current macro environment," Meir said.
More and more it looks as if this will be a dud of a hurricane season. As Len has often stated, there is NO REASON for oil to be priced this high. Maybe it will indeed "crash and burn" in the coming months.
Len and I disagreed (which is a rare event) the last time he called for a large drop in oil prices. He was wrong on that (also rare).
Many stocks and commodities are priced as they are due to investors, in spite of fundamentals, and the same applies to oil.
For example, what is gold's "true" value?
And, oil is a powerful business... worthy of consideration.
Oil could come down in price, but will likely not crash, and if it did, the price would go back up before long. I don't see any long-term sustained price drop for quite a while.
Also, consider that huge investments are being made in extracting oil from shale, and oil needs to be above $50 for that to be profitable... and it will be.
Sustained dramatically lower oil prices are a long way off... IMHO (again).
By Adam Thomson in Venice, Louisiana The white shrimp season officially began this week in Louisiana, and at this time of year 46-year-old Mr Foret, a hardened Cajun shrimper from Houma in the Mississippi delta, would normally be out on the water plying the trade that has kept him and his family since he was 13.
But now that he is a BP contractor through the oil company’s Vessels of Opportunity programme, designed to employ local fishermen in the oil spill clean-up operations, he earns more consistent money, and works a lot less than he used to.
“BP is a very nice fella, and this is a guaranteed cheque,” he says, pointing to a huge yellow skin or “bladder” on his boat that is used to collect skimmed oil. “I’m sticking with this for as long as I can.”
All over Louisiana, it is the same story: fishermen involved in the programme – according to BP, there are 2,000 vessels currently on active hire in the VoO – are discovering that hauling oil boom is far less taxing than shrimping, and they are in no hurry to return to their traditional way of life.
Reminds me of what my uncle said when I told him the paper mill he worked at was really stinky. "Smells like Bread and Butter to me" was his response.
Same thing happened with the Exxon Valdez. Many fishermen made more money than they could ever make fishing. The real complaints and lawsuits came after they money grab was over. I expect a lot of shrimpers will be upset when BP no longer hands over the big checks.
Len and I disagreed (which is a rare event) the last time he called for a large drop in oil prices. He was wrong on that (also rare).
I remember the arguments very well. You were definitely right. Len's reasoning was sound, but as you stated, it does not matter. The market is the market and the market is always right.
I am hoping that oil does tank down to at least $50 a barrel. In my opinion, that would be good news for the weak economy.
Agreed, I was wrong BIG TIME regarding "Oil falling off a cliff" in 2009. Tag was right and probably real, real close to reality.
Where oil goes, so does the market.
Where Len is on the mark is that investment underpinnings in the oil market remain skewed to the hedge bets. Looks like they are taking some money off the table in a hurry, however. I still think Len is completely correct in the balance that is not yet apparent in the markets.
Perhaps not a "Fall of the cliff" but balanced against the current economic outlook at the moment, the trend is definitely lower.
At the end of the day, somewhere in the future, the markets will understand that balance is the King of Growth. Sad to see in every market today, when it's tinkered with, everyone looses. Why can't we learn!
I am sick about the massive gains I could have enjoyed if I had held onto QLIK a bit longer. Damn! The stock has defied gravity!
You may be sick about getting out of QLIK too soon, but you came out "smellin' like a rose" by getting out of all your other stocks. You can't hit'em all.
Back from vacation but not yet into the swing of things. Company business comes first.
Re oil - it's been so pumped up by hedge fund backing. In the end though all the backing in the world doesn't work with bad fundamentals. Hedge funds have been exiting because the build up in inventory has to be appalling to any nvestor. Oil as a currency only works in a high enough demand market and I d'ont see that until jobs come back.so a fall back that may last quite a while with oil in the 50 - 60 range is on tap IMO. In truth what keeps oil high priced is a 20:1 leverage ratio in a thinly traded market. Regulate that down to the 2:1 leverage ratio stocks have and oil would be lucky to be at $45 a barrel.
Tag - got 20 miles to a gallon on the GL round trip, excluding the local mileage in the Myrtle Beach area. That's great gas mileage for a truck that size especially when you consider the traffic nightmares you hit in Virginia. The roads in that state simply cannot handle the crowds headed toward Virginia Beach and the North and South Carolina shores. It's the only state we hit traffic jams in. Unfortunately I-95 in Virginia can have 100 miles of stop and go and you can go from 70mph to a crawling tie-up (some are so bad you'd think the road was closed down) and then back to 70mph in minutes. The rolling hills of Virginia add to the problem as cars just slow down going up a hill. Of course you always get your drivers that go in the left lane and are afraid to pass a rig on these trips too. So they end up riding alongside the 18 wheelers for miles and I sit there thinking they are just brain-dead.
Charlie - on the new LS, the car automatically sets itself to the active phone in the car. The only time you have to select a phone is if you and your wife are both in the car at the same time. But if you drive the car alone after she had the phone set to hers, the car automatically defaults to your phone (provided it's turned on). BTW - in Myrtle there was one night where it was 89 degrees with an 83 dewpoint at 11PM and 91% relative humidity. It doesn't get much more tropical than that. That day and the next we had 107-112 heat indices. Water tempearture was 85-86 degrees while I was there and with all that heat and humidity I only saw 2 T-storms and one was at 5am. Overall we had great weather provided you like tropical weather (which I do).
You are doing a great job of forcing me to get a new LS sooner rather than later. As I told you and other before, my only real gripe about the 2008 LS is that it is not AWD. It is a real pain to change tires twice a year. The other new features you described on the new LS sound very exciting and useful. I wonder when the next generation LS will be coming out? With a very fragile economy, Lexus may decide to wait longer than usual before they take the next big jump.
Probably 2013. The next S-class is 2012, or maybe later in the 2011 year as a 2012 and the one photo of that car that I saw looked great.
Lexus is doing 6 month early lease termination if you sign up for a new lease so keep check of when you get near that period. MB was also doing 6 month early terminations. Both my MB dealer and my Lexus dealer told me that if there are specific colors or items you want on the car you may need to order early as the new economics have caused the car makers to be a lot more cautious on the volume and variability of what is now shipped to dealers. MB seems to be the most flexible, but they have still cut way back from the prosperous days. Naturally the bigger the dealership the greater your chances of getting what you want.
...you came out "smellin' like a rose" by getting out of all your other stocks...
You are right about that!
It's amazing that I am out of the stock market in the nick of time... once again.
My broker did, however, make a nominal purchase of a number of different stocks and funds recently, as part of his approach to dollar-cost average over an extended period of time. So far, his purchases represent a rather minimal exposure to the market, so I am not concerned about it. His purchases are a result of a deal I made with him recently, whereby I authorized him to independently handle some equity purchases. I told him we will see which one of us is ahead in the future... meaning we have a little friendly competition going on between us.
But, back to the markets... yes, I am very, very glad to be out of (for the most part) the stock market at this time. However, I want to give you a heads up that I am expecting a market "pop" to the upside sometime after the Labor Day holiday... but I am not sure it will hold.
Problem is that there is no way to really know what direction we are headed. The media would have us think we are heading into another recession, or that we are already in one. I read some articles that say we are actually in a depression. OTOH, some of the corporate data is still encouraging, although the outlook is questionable.
But the bottom line is that the economy is much too fragile, and we have this President Obama that doesn't truly "get it"... as proved by his economic policies and perspectives. We all need him to get aggressive and use the powers of the office to make serious decisions to put this economy on a course towards prosperity. Unfortunately, he sees prosperity itself in a very peculiar way.
He just doesn't understand the situation, as more and more Americans are starting to realize... and our country might suffer even more as a result.
What a shame. It is painful to see so much potential going down the drain.
We all need him to get aggressive and use the powers of the office to make serious decisions to put this economy on a course towards prosperity. Unfortunately, he sees prosperity itself in a very peculiar way.
Tag, you hit the nail on the head. How on earth does an economy get prosperous under a President that is against prosperity. It's like building supercars for a country with a 40mph speed limit. Obama came in anti-business and he has not changed one iota. The only recovery we've had is a normal bounceback from the doldrums and a revaulation of the market back to normalcy from the sublime. My 12 year old daughter could have led us back to that. But now we need policy that favors growth to get to the next level and that requires Obama to go against his principles. That is the true issue we face and investors w'ont put any faith in this market until he shows some common sense. And my personal feeling is that if he raises taxes we are headed toward 9,000, not because that reflects proper valuation but because that reflects sentiment that we are headed toward deflation and a Japanese type doldrum. To me Obama's tax increase thinking is the equivalent of the Japanese monetary policy that caused deflation to accelerate when they raised interest rates just as their economy showed some hint of bounce back. They only went from .1 to .5% and it's a nightmare that looks never ending. Meanwhile our anti-business President just wants to raise taxes on only 2% of Americans. . And if he is stupid enough to do that we will have a nigtmare that looks never ending.
BTW, I don't know if you or any of the guys here carry a mortgage on your properties or not, but I have noticed that today's rates are soooo low, I am going to refinance. Makes perfect financial sense.
It does make financial sense if you are in position to take advantage of it. I have heard that you have to have a credit rating of somewhere around 760 or higher or you can forget about getting a mortgage in today's market.
Hmmm...maybe that is the way it should be. If you don't pay your bills, you don't get a mortgage ! What a refreshing idea !!
I'm in an adjustable and am actually at 3.125%. I d'ont see that changing by more than .25% until August 2012 at the earliest. The most I can go up is 2% in any one year. I adjusted down from 4.25% (was there for the initial 5 years) to 3.25% last August and now down to 3.125%.
My wife and I are both over 800 credit rating and we have been messing with Chase now for over two months. It may finally be done at 4.75% for 30 years. We came close to paying it off a couple times. Yet we need the interest write-off to stay in as low of a bracket as possible. That is financing 60% of current appraised value. So don't expect the banks to get it done in a hurry. They are really dragging their feet. Tried the HARP loan. We wanted to combine first and 2nd so we only have one small payment. We have $0 CC debt and all vehicles paid for. No child support or spousal. Just crazy how difficult they can make it. Maybe it is just Chase that is so slow.
Comments
I've bought bullion here without tax...not in this market though.
TM
The feeling is mutual. There is no way we are going to agree on everything (especially when it comes to politics), but you guys are AWESOME. I have enjoyed and appreciated your information and advice more than you can imagine. This has been one happy family. We really do need, one day in the not too distant future, to all get together for a long weekend of fun, relaxation, and story telling. We could meet here in Des Moines, NJ, or in CA. How about making a commitment for some weekend next summer?
I can tell you right away that if we meet in Des Moines, maybe the best time would be around the time of the world famous Iowa State Fair which runs for 10 days in mid August. You guys on either coast need to get educated by visiting the various livestock buildings/exhibits
If it is anything like the Minnesota state fair it is big. I spent 4 days at the MN fair in 1978 and did not see all of it. Lots of fun for the whole family.
Don't believe Yahoo. They say Texas then CA. I have been to the CA state fair and it is not as big as the San Diego County fair. LA County fair is big. Not in a league with MN State Fair. I am sure Ohio and Iowa are bigger than most.
Two different criteria. Attendance and physical size. I consider the largest as having the most stuff to see.
Exactly!
Let us know what your broker did !!
2013 LX 570 2016 LS 460
You are a wonderful person. I'm headed for your neck of the woods tomorrow and will again look at real estate on Pawley's. But I'm still 1-2 yeras away from buying. In the meantime I've got a great condo at the Margate Towers in Kingston Plantation at the northern end of Myrtle. It's one of the most upscale condos there, and heck a driving vacation is so cheap why not stay at the best. Do you know it? Looking forward to my annual great filet at New York Prime.
Charlie, the LS is wonderful. I'm still discovering things. While they w'ont let you dial directly off the touch screen, the voice recgnition is amazingly easy and you always have your 18 most important speed dials that you can touch screen anytime you are driving. Also, they have finally allowed you to change phones while driving, Slowly but surely they are reaching the point of allowing you to hit those big phone numbers on the nav screen to dial. As an accountant I've been hitting numbers bl;indly on the tiniest calculators. Rarely do I ever get a number wrong. Those numbers are 10X the size of my calculators and they w'ont let me do iit. It's the one thing I hate about Lexus. Also they've finally gotten rid of the "I accept" now and it goes right into nav mode if you just ignore the show map that initially comes up. The car has a weather warning also but it'll tell you a sprinkle is severe weather.
Tag - taking the GL and still loving this truck everytime I drive it. Had it serviced today. I hope MB gets to 50% of the Lexus nav technology because I will definitely take another GL next year.
Where should I park the cash. This is $ that we won't be needing for awhile, since I'll be getting my government pension & the wife will still be working in her CPA company. I'll only be 56, so I won't be able to touch my Roth IRA or my TSP account with Uncle Sam. Will I also be able to move my TSP account to my Fidelity Roth? I'd like to consolidate things a bit also.
I know it's not a huge sum, but I'd like to make it work. I'm not a risk taker...a more conservative investor if you will. Any direction from the guru's here would be greatly appreciated...I'm at a loss as to what to do!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
Once you've determined the option that will have the least tax consequence, you can then go about making more specific choices. For example, if you were to choose certain funds, you might want to take the time to make sure you select funds that have a proven track record... weigh out the balance between the fund's performance and level of risk. Some are more speculative, and focused... meaning that if they only invest in a specific sector, then the fund's performance is tied to the market performance of a particular sector.
Sometimes the market favors certain types of investments, and sometimes it destroys them. For example: energy , small caps, mid caps, large caps, emerging markets, international, technology, natural resources, precious metals, etc., etc.
Also, I am wondering just how much control you will have over your investments, and what kind of "fees" you will be subject to. Be careful of paying too many fees. And be careful of annuities. I don't want to talk too much about them, but I don't like them at all, and it's my opinion that they are generally a rip.
Tax-free is less of an advantage if you go to a lower tax bracket, as you indicated you would be with retirement, so you probably have your answer on that one.
For what it's worth... I believe that a mix of stocks and bonds (OK to include some stock and bond funds) is typically the best way to go.
The bonds will provide the fixed security while the stocks have the potential to offer larger returns... but the market is clearly volatile, and you have to be careful. Sounds like you already have some bonds, which is very smart during retirement, so if I was to make a recommendation, I'd have to go with stocks... but keeping in mind your retirement situation, I think you would be very wise to pick quality stocks that pay dividends.
TM
She's reluctant to give me portfolio advice so I've been winging it with some help from my Fidelity folks. Any advice on some good quality high dividend stocks? I've already got AT&T and will be inheriting 476 shares of AEE. Thinking VZ and ED would just be duplications of what I already own. So really need some suggestions. Figure I'd put 1/2 into the stocks & 1/2 into the bonds.
As always, thanks for any and all advice...Tag you really are a very special guy to help a real newbie like myself, who's a bit overwhelmed by all this stuff!!!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
It is taxable and the current price is $27.99. per share. It pays a quarterly dividend of $.539 per share and that works out to a return of around 8% annually. The stock was issued at $25.00 a share so it has appreciated some.
The first call date is some time in 2013 and at that time Wells Fargo could opt to buy your shares back for the issue price of $25. a share or just let it continue. Of course you could sell it at any time before that at the going rate. It is not apt to appreciate much more than the current price but, effectively, it will never go below $25.
WCO is not the only choice out there in preferred stocks and some of them have a more favorable tax treatment, etc. It is just the one that I settled on. Good luck and if you do have someone advising you ask them about WCO.
2013 LX 570 2016 LS 460
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
Yes, you could purchase preferred stock thru Scottrade.
2013 LX 570 2016 LS 460
Please excuse my stupid questions with investing...I plan to take a class or two on investing once I retire so I can learn what I need to know. Still not sure if I will turn over my portfolio to that financial planner who wants 1%/year. Regardless, I still need to know what's going on with my $!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
2013 LX 570 2016 LS 460
That all said, the market is also poised because it's been stagnant for soooo long that once there is finally enough solid economic data, the market will rally, and rally hard.
The key here is patience, and be ready to buy when the REAL rally comes. Any rally during poor economic data won't hold, as we've seen numerous times. It ultimately sells off.
In spite of Obama, there will finally be some improvement in the future, as Americans and American businesses figure out how to navigate through a more socialist type of environment, with a judicial system that doesn't totally honor the constitution. In any event, one day American businesses and consumers will prosper again, and when that happens, be ready to buy in a big way.
I am waiting... and hopeful. Yet, sad about what is happening to America.
TM
But I want to learn and will do my best to maximize the value of my portfolio adjusting the %'s of stocks, bonds & cash as necessary. So I look forward to reading this forum for a long time to come!
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
The Sandman :confuse: :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
.....In this day and time I don`t think anyone---No one--really fully understands what is going on with either companies or say bonds....This is due to the massive changes going on in government and the power of computers, along with a more mature country...and the non enforcement of regulations etc etc....Even what use to be `blue chip` companies have gone bankrupt or are close...Example GM EK, and say just look at the value of GE, one of the finest ten years ago....KO was the same price it is today ten years ago...at least four ceo have come and gone with hundreds of millions of dollars in compensation from ko, and the lowly stock holder has gotten around three percent return each year...That hasn`t kept up with the inflation rate....
We almost had a financial melt down a couple of years ago, and then a sharp recovery..many people were and are severely crippled..
.We are all very fortunate to have survived that misfortune....and now there is concern we may re visit poorer times.......All any of us can do is keep informed and live our own lives --don`t believe the spin-- and always realize any financial decision can be wrong in short order, so act accordingly......
On a more optimistic note , some people on this board have been very astute and avoided mishap, reorganized, adjusted , and are a good source of information....That is all right here in past posts, so my advice to you would be to re read the last couple of years worth of these posts, here and on the `luxury lounge`....A good group of caring people....Tony
I am in Hawaii, and will return next Tuesday. :shades:
TM
Edward Meir, a senior commodity analyst at MF Global, said oil prices will likely continue to be supported somewhat by the prospect of hurricanes in the Gulf of Mexico over the coming six weeks.
"After that time, all bets will be off, as the 'hurricane prop' will start to fade, making the markets increasingly vulnerable to the downside, especially given the current macro environment," Meir said.
Oil industry analysts Cameron Hanover have even warned that crude prices should be substantially lower -- below $35 and potentially as low as $10 a barrel based on the weak state of demand.
"Prices are near $75 instead because investors -- gargantuan investors -- are pricing oil more in terms of gold than in terms of the market's history, the euro, the dollar, or supply and demand," it said.
"It is good to see oil prices sell off on Thursday but it is a deck-chair off a cruise ship. Prices should be substantially lower, based on record supplies during a recession with no timetable for recovery," it added.
I'll save enough money on energy to go on a cruise....finally!
Regards,
OW
"After that time, all bets will be off, as the 'hurricane prop' will start to fade, making the markets increasingly vulnerable to the downside, especially given the current macro environment," Meir said.
More and more it looks as if this will be a dud of a hurricane season. As Len has often stated, there is NO REASON for oil to be priced this high. Maybe it will indeed "crash and burn" in the coming months.
2013 LX 570 2016 LS 460
Many stocks and commodities are priced as they are due to investors, in spite of fundamentals, and the same applies to oil.
For example, what is gold's "true" value?
And, oil is a powerful business... worthy of consideration.
Oil could come down in price, but will likely not crash, and if it did, the price would go back up before long. I don't see any long-term sustained price drop for quite a while.
Also, consider that huge investments are being made in extracting oil from shale, and oil needs to be above $50 for that to be profitable... and it will be.
Sustained dramatically lower oil prices are a long way off... IMHO (again).
Aloha... TM. :shades:
By Adam Thomson in Venice, Louisiana
The white shrimp season officially began this week in Louisiana, and at this time of year 46-year-old Mr Foret, a hardened Cajun shrimper from Houma in the Mississippi delta, would normally be out on the water plying the trade that has kept him and his family since he was 13.
But now that he is a BP contractor through the oil company’s Vessels of Opportunity programme, designed to employ local fishermen in the oil spill clean-up operations, he earns more consistent money, and works a lot less than he used to.
“BP is a very nice fella, and this is a guaranteed cheque,” he says, pointing to a huge yellow skin or “bladder” on his boat that is used to collect skimmed oil. “I’m sticking with this for as long as I can.”
All over Louisiana, it is the same story: fishermen involved in the programme – according to BP, there are 2,000 vessels currently on active hire in the VoO – are discovering that hauling oil boom is far less taxing than shrimping, and they are in no hurry to return to their traditional way of life.
http://www.ft.com/cms/s/0/22f0dc08-ae19-11df-bb55-00144feabdc0.html
Reminds me of what my uncle said when I told him the paper mill he worked at was really stinky. "Smells like Bread and Butter to me" was his response.
Same thing happened with the Exxon Valdez. Many fishermen made more money than they could ever make fishing. The real complaints and lawsuits came after they money grab was over. I expect a lot of shrimpers will be upset when BP no longer hands over the big checks.
Is this a good time to buy BP stock?
I remember the arguments very well. You were definitely right. Len's reasoning was sound, but as you stated, it does not matter. The market is the market and the market is always right.
I am hoping that oil does tank down to at least $50 a barrel. In my opinion, that would be good news for the weak economy.
Where oil goes, so does the market.
Where Len is on the mark is that investment underpinnings in the oil market remain skewed to the hedge bets. Looks like they are taking some money off the table in a hurry, however. I still think Len is completely correct in the balance that is not yet apparent in the markets.
Perhaps not a "Fall of the cliff" but balanced against the current economic outlook at the moment, the trend is definitely lower.
Hedge Funds Cut Gasoline Bets Most Since 2006: Energy Markets
At the end of the day, somewhere in the future, the markets will understand that balance is the King of Growth. Sad to see in every market today, when it's tinkered with, everyone looses. Why can't we learn!
Regards,
OW
I am sick about the massive gains I could have enjoyed if I had held onto QLIK a bit longer. Damn! The stock has defied gravity!
TM
You may be sick about getting out of QLIK too soon, but you came out "smellin' like a rose" by getting out of all your other stocks. You can't hit'em all.
Re oil - it's been so pumped up by hedge fund backing. In the end though all the backing in the world doesn't work with bad fundamentals. Hedge funds have been exiting because the build up in inventory has to be appalling to any nvestor. Oil as a currency only works in a high enough demand market and I d'ont see that until jobs come back.so a fall back that may last quite a while with oil in the 50 - 60 range is on tap IMO. In truth what keeps oil high priced is a 20:1 leverage ratio in a thinly traded market. Regulate that down to the 2:1 leverage ratio stocks have and oil would be lucky to be at $45 a barrel.
Tag - got 20 miles to a gallon on the GL round trip, excluding the local mileage in the Myrtle Beach area. That's great gas mileage for a truck that size especially when you consider the traffic nightmares you hit in Virginia. The roads in that state simply cannot handle the crowds headed toward Virginia Beach and the North and South Carolina shores. It's the only state we hit traffic jams in. Unfortunately I-95 in Virginia can have 100 miles of stop and go and you can go from 70mph to a crawling tie-up (some are so bad you'd think the road was closed down) and then back to 70mph in minutes. The rolling hills of Virginia add to the problem as cars just slow down going up a hill. Of course you always get your drivers that go in the left lane and are afraid to pass a rig on these trips too. So they end up riding alongside the 18 wheelers for miles and I sit there thinking they are just brain-dead.
Charlie - on the new LS, the car automatically sets itself to the active phone in the car. The only time you have to select a phone is if you and your wife are both in the car at the same time. But if you drive the car alone after she had the phone set to hers, the car automatically defaults to your phone (provided it's turned on). BTW - in Myrtle there was one night where it was 89 degrees with an 83 dewpoint at 11PM and 91% relative humidity. It doesn't get much more tropical than that. That day and the next we had 107-112 heat indices. Water tempearture was 85-86 degrees while I was there and with all that heat and humidity I only saw 2 T-storms and one was at 5am. Overall we had great weather provided you like tropical weather (which I do).
It was a year ago at this time that I sold AAPL at $128. So I know the feeling. Luckily I bought it back at $161.
It's been a Jungle out there in terms of the weather, on the roads and in the markets...can't wait until the first breath of Autumn is upon us...
I also can't wait until we can program the cars to ACCELERATE up hills instead of the brain dead current situation!
Regards,
OW
You are doing a great job of forcing me to get a new LS sooner rather than later. As I told you and other before, my only real gripe about the 2008 LS is that it is not AWD. It is a real pain to change tires twice a year. The other new features you described on the new LS sound very exciting and useful. I wonder when the next generation LS will be coming out? With a very fragile economy, Lexus may decide to wait longer than usual before they take the next big jump.
Probably 2013. The next S-class is 2012, or maybe later in the 2011 year as a 2012 and the one photo of that car that I saw looked great.
Lexus is doing 6 month early lease termination if you sign up for a new lease so keep check of when you get near that period. MB was also doing 6 month early terminations. Both my MB dealer and my Lexus dealer told me that if there are specific colors or items you want on the car you may need to order early as the new economics have caused the car makers to be a lot more cautious on the volume and variability of what is now shipped to dealers. MB seems to be the most flexible, but they have still cut way back from the prosperous days. Naturally the bigger the dealership the greater your chances of getting what you want.
You are right about that!
It's amazing that I am out of the stock market in the nick of time... once again.
My broker did, however, make a nominal purchase of a number of different stocks and funds recently, as part of his approach to dollar-cost average over an extended period of time. So far, his purchases represent a rather minimal exposure to the market, so I am not concerned about it. His purchases are a result of a deal I made with him recently, whereby I authorized him to independently handle some equity purchases. I told him we will see which one of us is ahead in the future... meaning we have a little friendly competition going on between us.
But, back to the markets... yes, I am very, very glad to be out of (for the most part) the stock market at this time. However, I want to give you a heads up that I am expecting a market "pop" to the upside sometime after the Labor Day holiday... but I am not sure it will hold.
Problem is that there is no way to really know what direction we are headed. The media would have us think we are heading into another recession, or that we are already in one. I read some articles that say we are actually in a depression. OTOH, some of the corporate data is still encouraging, although the outlook is questionable.
But the bottom line is that the economy is much too fragile, and we have this President Obama that doesn't truly "get it"... as proved by his economic policies and perspectives. We all need him to get aggressive and use the powers of the office to make serious decisions to put this economy on a course towards prosperity. Unfortunately, he sees prosperity itself in a very peculiar way.
He just doesn't understand the situation, as more and more Americans are starting to realize... and our country might suffer even more as a result.
What a shame. It is painful to see so much potential going down the drain.
TM
The Prez should have studied economics. At least Economics 101.
Tag, you hit the nail on the head. How on earth does an economy get prosperous under a President that is against prosperity. It's like building supercars for a country with a 40mph speed limit. Obama came in anti-business and he has not changed one iota. The only recovery we've had is a normal bounceback from the doldrums and a revaulation of the market back to normalcy from the sublime. My 12 year old daughter could have led us back to that. But now we need policy that favors growth to get to the next level and that requires Obama to go against his principles. That is the true issue we face and investors w'ont put any faith in this market until he shows some common sense. And my personal feeling is that if he raises taxes we are headed toward 9,000, not because that reflects proper valuation but because that reflects sentiment that we are headed toward deflation and a Japanese type doldrum. To me Obama's tax increase thinking is the equivalent of the Japanese monetary policy that caused deflation to accelerate when they raised interest rates just as their economy showed some hint of bounce back. They only went from .1 to .5% and it's a nightmare that looks never ending. Meanwhile our anti-business President just wants to raise taxes on only 2% of Americans. . And if he is stupid enough to do that we will have a nigtmare that looks never ending.
BTW, I don't know if you or any of the guys here carry a mortgage on your properties or not, but I have noticed that today's rates are soooo low, I am going to refinance. Makes perfect financial sense.
TM
Hmmm...maybe that is the way it should be. If you don't pay your bills, you don't get a mortgage ! What a refreshing idea !!
2013 LX 570 2016 LS 460