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WWYD?
Dec 12, 2008 3:38:15 GMT -6
Post by twinegarden on Dec 12, 2008 3:38:15 GMT -6
Homage to WWJD and Team America
With the markets surrounded by a huge "?", what would you do in these situations:
A) 57 years old, 200,00 in a moderate porfolio.
B) 35 years old, 25,000 amount invested moderate portfolio.
C) 25 years old, 10,000 invested in agressive portfilio.
D) 68 years old 400,000 nvested primarily in a semi-moderate portfolio.
E) 50 years old 3,000 moderate portfolio
F) 45 years old, 20,000 invested very conservative (money market).
I give advice to people relying mostly on historical performance, interested in seeing what you guys would do. Any other scenarios happen too, so whatever comes up is good food for thought. Keep in mind most of these accounts would have been worth ~1.6 times their worth a year and two months ago.
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WWYD?
Dec 12, 2008 7:34:01 GMT -6
Post by NOTTHOR on Dec 12, 2008 7:34:01 GMT -6
Homage to WWJD and Team America With the markets surrounded by a huge "?", what would you do in these situations: A) 57 years old, 200,00 in a moderate porfolio. [Tell guy to pray like hell the government will take care of him. He's fucked unless he's making a ton of money and just now beginning to really save. I'd get some of that (50%) in an S&P index fund and buy some PFG, DD, DOW and maybe one or two other big caps that are paying nice divvies, he's gonna need that income in a few years. The rest, I'd probably just go super safe - dude's gonna be a public charge anyway, plus I'd tell him he better not plan on retiring anytime soon] B) 35 years old, 25,000 amount invested moderate portfolio. [Swing for the fence. 100 shares PFG, 500 C, 100 DEO, maybe some BA or CAT for a big industrial co., a little in an index fund] C) 25 years old, 10,000 invested in agressive portfilio. [keep it where it is] D) 68 years old 400,000 nvested primarily in a semi-moderate portfolio. [Keep principal, buy a fixed annuity if healthy when rates go back up] E) 50 years old 3,000 moderate portfolio [Try to find a government or union job and pray to retire at 70 when the pension is fully vested and paying out at the maximum rate. This person is PWN3D.] F) 45 years old, 20,000 invested very conservative (money market). [Same as E] I give advice to people relying mostly on historical performance, interested in seeing what you guys would do. Any other scenarios happen too, so whatever comes up is good food for thought. Keep in mind most of these accounts would have been worth ~1.6 times their worth a year and two months ago.
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WWYD?
Dec 12, 2008 13:52:27 GMT -6
Post by thunderhawk on Dec 12, 2008 13:52:27 GMT -6
What would I do now?
I'd buy real estate. And then stocks. This is the part where you "buy low."
You're supposed to buy low and sell high, right? Well, I wouldn't sell low either, so I wouldn't sell any mutual funds that had lost value. You'd be better off riding those out. Remember that one time when the economy didn't recover? Yeah, me neither.
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WWYD?
Dec 12, 2008 13:53:45 GMT -6
Post by Saggitariutt Jefferspin (ith) on Dec 12, 2008 13:53:45 GMT -6
G) Blow it all on Fat Heads.
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WWYD?
Dec 12, 2008 13:59:43 GMT -6
Post by Saggitariutt Jefferspin (ith) on Dec 12, 2008 13:59:43 GMT -6
Honestly though, if I had a lot of disposable income, I would be buying the shit out of real estate right now, specifically in the 'destination locations'. The markets are so deflated right now...and as Thunderhawk pointed out, we will eventually recover.
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WWYD?
Dec 12, 2008 22:03:20 GMT -6
Post by mattahawk on Dec 12, 2008 22:03:20 GMT -6
Honestly though, if I had a lot of disposable income, I would be buying the shit out of real estate right now, specifically in the 'destination locations'. The markets are so deflated right now...and as Thunderhawk pointed out, we will eventually recover. Real Estate has to be a good option. I went to a foreclosure auction a month ago. This company out of DesMoines was selling these 4 bdrm/2 bath condos, 1 pair, and he bought them both for 80,000 grand. Now he has them listed in the paper for 80 thousand each. Sidenote; he won't get anywhere near that as they were in the paper for sale BEFORE the auction for like a year and a half and they were down to the upper 60's. Still, like thunder said, it will recover eventually.
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WWYD?
Dec 13, 2008 11:05:41 GMT -6
Post by NOTTHOR on Dec 13, 2008 11:05:41 GMT -6
What would I do now? I'd buy real estate. And then stocks. This is the part where you "buy low." You're supposed to buy low and sell high, right? Well, I wouldn't sell low either, so I wouldn't sell any mutual funds that had lost value. You'd be better off riding those out. Remember that one time when the economy didn't recover? Yeah, me neither. Liberal recklessness in action. Thunder would have that 50 year old with that fat 3k portfolio plunk it down on real estate. Nothing down. No stated income. Fannie Mae baby. Whoo hoo. Then, after not making payments for 3 years, the guy can shoot himself the day the sheriff goes to foreclose, the liberal media will report the story, and then Fannie Mae will give him the house free and clear and stick the taxpayer with the bill. As crazy as it sounds, Thunder's model is clearly the road to the highest return.
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WWYD?
Dec 13, 2008 17:11:27 GMT -6
Post by Saggitariutt Jefferspin (ith) on Dec 13, 2008 17:11:27 GMT -6
Honestly though, if I had a lot of disposable income, I would be buying the shit out of real estate right now, specifically in the 'destination locations'. The markets are so deflated right now...and as Thunderhawk pointed out, we will eventually recover. Real Estate has to be a good option. I went to a foreclosure auction a month ago. This company out of DesMoines was selling these 4 bdrm/2 bath condos, 1 pair, and he bought them both for 80,000 grand. Now he has them listed in the paper for 80 thousand each. Sidenote; he won't get anywhere near that as they were in the paper for sale BEFORE the auction for like a year and a half and they were down to the upper 60's. Still, like thunder said, it will recover eventually. It's on much greater scale in Florida and California. I see situations every day of short sale purchases and auctioned purchases that are less than 50% of the value.
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WWYD?
Dec 13, 2008 17:13:16 GMT -6
Post by Saggitariutt Jefferspin (ith) on Dec 13, 2008 17:13:16 GMT -6
What would I do now? I'd buy real estate. And then stocks. This is the part where you "buy low." You're supposed to buy low and sell high, right? Well, I wouldn't sell low either, so I wouldn't sell any mutual funds that had lost value. You'd be better off riding those out. Remember that one time when the economy didn't recover? Yeah, me neither. Liberal recklessness in action. Thunder would have that 50 year old with that fat 3k portfolio plunk it down on real estate. Nothing down. Thankfully, those days are over.
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