Where to keep money?
 

Sorry if this sounds like a stupid question, but:

What does all this mean for me and the money I have in 401K plans, IRA, Roth IRA, also have money in the bank in a basic savings account? I was thinking of putting some of it in a money maket so I can have access to it.

With the financial "storm" coming, is there a safe place to keep money? Should I be concerned at all? Should I just keep adding money and ride things out?

Is your 401k, IRA, etc. managed by Lehman?

If not, just ride out the storm.

I see a coming opportunity. Stocks will be on sale soon.

Mattress or coffee can works well.

Where the big mean 200-pound ass-bitin' dog sleeps.

The key question is who holds your investments and do you read their quarterly reports, know the resumes of the managers, agree with their investment strategy, etc.? Look squarely at any risk associated with your funds.

Then, where are you in the arc of investment...just married, older, empty nester?

Diversify...sounds easy but requires a great deal of thought. Every two years my wife and I sit down and review our financial goals and adjust. We will have an ad hoc meeting of the minds this weekend and move out accordingly.

My advice...you'll never know more about the market than the market players, but they'll never know more about you than, well, you. Know your financials better than they do, including your portfolio desires.

The basics of sound financial investing are as easy as the ABC's...:)

Always
Buy
Chinese

We're on the right track!

In July I sold half my stock and put 70% in CD's for 6 months, 15% I bought gold and silver, the rest I am keeping in cash.

money in the bank in a basic savings account OR money markets are guaranteed to lose money over the long term. they never do quite as well as inflation.

Bonds do about as well as inflation

Only stocks (or real estate) will do better than inflation.

There is risk to each type and the risk increases generally with the return potential.

I think the best places to keep investments are Vanguard and Fidelity.

Not only that but each one, has an Independent guy who monitors their funds and selects the best ones to buy. Independent ...

for Vanguard it is Dan Weiner

for Fidelity it is Jim Lowell

Google the names for their subscription services - they are not real expensive and have an xlnt track record.

Are you saying real estate will out perform inflation NOW?

You're kidding, right?

Historically real estate approximates inflation so effectively it's just a savings account that keeps your money socked away at current value. Today, it's a guaranteed loss. Five years ago it was a good bet.

It will take a long time for real estate to be a good inflationary hedge again, unless we get runaway/hyper inflation - which is a possibility I guess...

Jeff, you often forget that SoCal doesn't equal the USA. My side of town in Wichita has seen 6% yearly appreciation since forever. If there's no bubble, there's no bubble to pop. Of course, 6% yearly just barely keeps up with inflation, so you're not getting rich either. But, a solid market plus a little sweat equity can make for a good profit.

Buy a nice air cooled Porsche - excellent investment! :D

I'm thinking larger fuchs and long nose cars - they can't do any worse than my 401k / money market these days - hell blowing it on hookers and blow would be a better investment...

Buy assault rifles. When the next ban goes into effect, you'll be able to double your money.

Buy rental real estate. The price is right...so are interest rates.

What's the max LTV on an investment property these days? 70% plus two discount points? If you have LOTS of cash, it might be a good deal. But I don't think investment property mortgages are a good deal anymore.

My lender had 80% without PMI.

"Evil Black Rifles" and ammo. Not the steel-cased Wolf crapola.

Oh, and LOTS AND LOTS of hi-cap magazines.

How long ago was that?

My last one closed mid-June...but I believe that they are currently offering 30 yr fixed at 6% for investment at 80% LTV.

You forget -- the govt. lets you DE-preciate real estate -- even tho it is really APPreciating. Add that in, and for most all, yes, real estate an beat inflation over the long term. Obviously, do not buy a hot market.

Next year might be good for Cal & Fl tho.