Where are you putting your money these days?

dmcummins · 07-04-2009, 01:30 PM

Like many, I'm worried about coming inflation and what to do with my investments. I'm retired and need my money to last a long time, I'm 52. I'm also not talking about doing anything drastic, I already have the guns and ammo

, but just some investments that would either lower my future need for money, or hopefully keep up with inflation.

My house is paid off and I have no other debts. I'm thinking about adding a solar water heater, with the tax credits I think the return on investment might be good. I doubt if any other alternative energy options are worth the money yet, except insulation.

I'm not interested in rental property either, but I would buy raw land if the price was right. I'm just not seeing the price of raw land dropping around here at this time.

I guess what I'm looking at are hard assets. Any ideas ?

Steve Viegas · 07-04-2009, 01:44 PM

If you are really concerned about inflation, look into TIPS (treasury inflation protected securities).

dmcummins · 07-04-2009, 01:47 PM

Quote:

Originally Posted by Steve Viegas

If you are really concerned about inflation, look into TIPS (treasury inflation protected securities).

I actually have some. The problem is its the Government who calculates what they think the inflation rate is. And I don't trust them.

Dottore · 06:09 AM

I have the same problem. I'm tending towards commercial real-estate—particularly some niche sectors. Returns on serviced (ie; furnished apartments) are also very, very good here. As are parking lot/parkade plays in good areas. I think real estate with a good and annually reviewable income stream is one of the best bets for inflationary times.

onewhippedpuppy · 07-04-2009, 02:16 PM

Today I'm setting some of it on fire.

RWebb · RWebb's Garage

Quote:

Originally Posted by dmcummins

Like many, I'm worried about coming inflation and what to do with my investments. I'm retired and need my money to last a long time, I'm 52. ...

I guess what I'm looking at are hard assets. Any ideas ?

No. Not for hard assets.

The only thing is likely to gain value over & above inflation and has reasonable diversification is a basket of stock mutual funds.

You want good mgmt and the lowest costs. Vanguard.

search on that for more advice from me, Paul, and other diverse people...

ruf-porsche · ruf-porsche's Garage

Got too much of it lying around cluttering up the yard. So this is what we do with our money.

LakeCleElum · 07-04-2009, 03:11 PM

All my money is tied up in cash!

Actually - I was just getting into investing in the late 70's when inflation reared it's ugly head.
I was lucky to have not invested in "WOPS" bonds that paid 14%.....These bonds were to build nuclear power plants in WA state. The projects got scrapped after construction and investors were lucky to get 8 cents on the dollar.

The reason I passed back then: My same money market acc't I still have today was paying over 12%.......

So for me, I'll do the same if inflation returns like it was then. I just can't see real estate having another big run-up after what we've just been thru....

LakeCleElum · 07-04-2009, 03:11 PM

All my money is tied up in cash!

Actually - I was just getting into investing in the late 70's when inflation reared it's ugly head.
I was lucky to have not invested in "WOPS" bonds that paid 14%.....These bonds were to build nuclear power plants in WA state. The projects got scrapped after construction and investors were lucky to get 8 cents on the dollar.

The reason I passed back then: My same money market acc't I still have today was paying over 12%.......

So for me, I'll do the same if inflation returns like it was then. I just can't see real estate having another big run-up after what we've just been thru....

Drdogface · Drdogface's Garage

I'm about 50% in ETF's...sectors of the SP 500. We sell short term Calls on these and make extra income...this has worked pretty well for me for the past year or so.. The other 50% is fixed income.

dmcummins · 07-04-2009, 04:33 PM

Quote:

Originally Posted by RWebb

No. Not for hard assets.

The only thing is likely to gain value over & above inflation and has reasonable diversification is a basket of stock mutual funds.

You want good mgmt and the lowest costs. Vanguard.

search on that for more advice from me, Paul, and other diverse people...

I have my share of stock funds and some individual shares. I have money at Vanguard and I have some left in my 401K that are with American Funds.

I'm not looking to change my asset allocation a huge amount. My net worth is still growing as I have more coming in that I spend. I am just looking at investing some of the extra in assets that I can see and use.

Arizona_928 · 07-04-2009, 05:03 PM

I keep mine in a brown bag, under the mattress.

pwd72s · 07-04-2009, 05:22 PM

Quote:

Originally Posted by RWebb

No. Not for hard assets.

The only thing is likely to gain value over & above inflation and has reasonable diversification is a basket of stock mutual funds.

You want good mgmt and the lowest costs. Vanguard.

search on that for more advice from me, Paul, and other diverse people...

Since my name was brought up...I USED to be heavily into equities (stocks), but now I'm merely into preservation mode, NOT looking for good gains as the economy itself heads south. No idea when, if ever, we will see free enterprise flourish in this country as it has in the past. Cindy & I are now 70% fixed income, and only 30% stocks. Most of the "fixed income" is in Treasury guaranteed securities. GNMA...NOT to be confused with Fannie Mae or Freddie MAC. Also Ibonds.

pwd72s · 05:47 PM

I'd like to add that I once read that investing in the market was placing faith in the future of the USA...
Right now my faith isn't as strong as it once was. Not going to say more because this is too important to be shoved into the politics & religion forum...

Crowbob · 07-04-2009, 06:37 PM

dmcummins,

Of course, the absolute numbers would dictate a strategy, but if you're net worth is increasing, put all the cash you can into money markets. Hey, collapse happens? You got cash, supposedly. Retired at 52: 1) You want to be debt-free; 2) You want as much cash as you can stand; 3) You want to plan to be off the grid for a few weeks at a time every so often. Possibly monthly if things get bad enough. You're at 1, possibly at 3. only thing left is #2-CASH.

Bill Douglas · 07-04-2009, 07:43 PM

Probably.... I say probably hesitantly. It would (might) be a good time to buy art, antiques, or collectables. Some art prices are right down right now, and when (if) the economy comes right they may double back to their "rightful" price. You can't collect rent or interest on your artworks but they sure go up, or down, in value faster than real estate.

We have about another 100 or so days before we are right in the middle of the swine flue pandemic so I wouldn't buy anything until we see what happens.

pwd72s · 07-04-2009, 09:27 PM

Bill, maybe you don't get how bad things are going to get? People losing homes aren't out there buying collectables...but if you insist, there is a '73 RS that has been for sale in Australia for quite some time...

fintstone · fintstone's Garage

Guess my advice is not worth much...I am sticking with real estate and the stock market.

pwd72s · 07-04-2009, 10:36 PM

These are unprecedented times...nobody has a crystal ball. There are also many paths that reach many different financial goals. Good luck to us all...

Zef · Zef's Garage

Paid off house....retirement funds full.....no debts....kids college and travel and vacations is where I put my money.....hey...we'll be dead for a very long time...enjoy now.