SRBeef
Well-known member
I'd rather put money in good cows than the stock market. Cows (almost) always pay a dividend.
Stock Market
- Thread starter HDRider
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cross_7
Well-known member
TexasBred":1o3ne57l said:
I'm kind of ignorant but the way I understand it they are taking your money and not paying you any type return but dolling it out to you in 5% increments for 20 years. Thus using your money free of charge for 20 years and the only way you benefit is if you live longer than the 20 years you continue to receive the 5% payments
Is that correct or does the payout vary depending on the return on investment ?
Caustic Burno
Well-known member
cross_7":3tqoz4bs said:
There are many products offered some have guaranteed pay back of all the principal, others pay for life with period certain.
If you die before period certain that is paid to your heirs. Others just pay period certain. These are just a few examples.
Timing has a lot to do it as well as with anything in life. I have joint one paying 6.69% for the rest of our life's.
Even if the Mrs and I get killed in a car wreck it will pay out to the heirs almost a 100,000 more than we put in.
Any financial adviser worth his salt will you have you in some annuities for guaranteed income along with bonds and some stock for growth at retirement.
As you age you risk exposure should be reduced and when you retire it should be minimal.
Caustic Burno
Well-known member
SRBeef":3e2qdeef said:
You are still playing the market, the commodities market.
Big Board is just in Chicago not NYC.
They can always do what they did to my grandpa in the depression.
Govt came in with a dozer dug a trench shot half his cows, pushed them in and covered them up.
They didn't pay one red cent either.
All investment is at risk.
millstreaminn
Well-known member
In the last 5 days, I've lost just under 1/2 of what I made in all of last year on stocks. I'm heavy on Apple and Boeing and both of them recently got hammered. Takes all the fun out of it when everything you see on your screen is red...
John SD
Well-known member
millstreaminn":3ssck327 said:
You really haven't "lost" anything unless you sell at the current low price.
Hopefully, over time your stocks should not only bounce back, but make some nice gains for you.
You'll be a nervous wreck if you sweat the short term swings in stock value.
Caustic Burno
Well-known member
John SD":3bg8jne5 said:
If my Great grandfather was still alive he would disagree with you .
1929 had a impact on his thinking.
WalnutCrest
Well-known member
Caustic Burno":25vvl9ue said:
+1
Ryder
Well-known member
I sure would agree with your Great grandfather.Caustic Burno":3rnlw865 said:
If your holdings are down, your assets/wealth is down.
This philosophy of the market goes down but it always comes back up is losing philosophy. When it goes down you do not know it will come back up or if it does how long it will take.
As to 1929, look at a chart and draw a line from the '29 high straight across to where the market reached that high again. Now count how many years it took. All those years you would have actually been losing money. You have to consider opportunity costs.
And you had no guarantee it would come back.
As someone pointed out, if you are in the market in any fashion, you are a market timer. It's just that a lot of people don't understand this and don't want to look at it.
My rant for the day. But Caustic started it. :lol2:
John SD
Well-known member
Caustic Burno":38skoal0 said:
IMO, Caustic sums up this whole thread in that one simple observation. No investment is a foolproof "can't lose" proposition.
FDIC/NCUA federally insured bank/credit union deposits are "safe", but the returns today of next to nothing interest rates are pathetic. But your principal is safe and guaranteed to $250K per depositor. Wasn't that way back in the 30's and many people lost every penny they had when banks went bust.
Stocks/mutual funds can be boom or bust. Thankfully, most are average. I have picked some real dud stocks such as GM :bang: :bang: :bang: Been a Chevy man all my life but the Government Motors thing soured me for good. I've also had a few stocks that have been winners for me like Polaris. :banana: :banana: :banana:
Whole life insurance has been good for me. I have borrowed against my policy's cash value to fund improvements on my ranch. And my heirs should get a pretty good chunk of change when I kick the bucket. :shock:
My annuity that pays guaranteed minimum 3% looks better today than when I started it in the days when banks were paying 8%. The company stopped allowing further contributions to it a while back. Now I wish I had put some more in to it while I could have. The "catch" is I can't make any withdrawls without interest penalty until I'm age 59 1/2.
Gold, silver, and other precious metals are not really "investments" per se. PM's are a "store of value", basically a hedge against inflation. As mentioned before, Gold Eagles and Silver Eagles are my favorite method of buying gold and silver.
Long term I think ag land and most real estate in general is a good investment. Land that is capable of growing a marketable crop or livestock. Housing and other rental properties can be good or can be a disaster. I just don't have the stomach to deal with renters.
If I had stomach for it, I would buy property in Sturgis SD. Lots of places exist for the sole reason to rent out for a couple weeks to motorcycle interests for the annual Motorcycle Rally every August.
IMO, the moral of the story is to not put all my investment eggs in one basket. "Diversify, Diversify, Diversify", is my plan.
Caustic Burno
Well-known member
John SD":3ccq9trt said:
Yea when the big 3 were on bottom I bought Ford just luck.
You could have 2 million in CD's right now and you would starve to death.
greybeard
Well-known member
I have a guaranteed return annuity with The Hartford.
Most guaranteed annuities have an initial term. Usually 2,3,4, 6 yrs etc. Mine was 4 years.. The 1st year or 2 you will see virtually no growth in it. Before the anniversary date is reached, there is also a substantial early withdrawal penalty. After the end of the term, you can leave it in or start taking annual payments out of it. No matter either way as there is no penalty. As long as you have a balance tho, it is still growing, as that balance is being used by the company of investment. Another benefit to it is that (in mine anyway) the 365 day high is calculated each year for that year and the value of the investment will never drop below that. If you invest $50,000, and 2 years afterwards, it has grown to $51,000, it's value will never drop below that. If your balance hit $51,000 for just 1 day then that is the value that is used as the minimum value for that year. As far as them having your money for the rest of your life and not paying anything other than the principal, that is simply not true. "Guaranteed return" means that is the MINIMUM you will get back (minus any qtrly or monthly fees)
Most guaranteed annuities have an initial term. Usually 2,3,4, 6 yrs etc. Mine was 4 years.. The 1st year or 2 you will see virtually no growth in it. Before the anniversary date is reached, there is also a substantial early withdrawal penalty. After the end of the term, you can leave it in or start taking annual payments out of it. No matter either way as there is no penalty. As long as you have a balance tho, it is still growing, as that balance is being used by the company of investment. Another benefit to it is that (in mine anyway) the 365 day high is calculated each year for that year and the value of the investment will never drop below that. If you invest $50,000, and 2 years afterwards, it has grown to $51,000, it's value will never drop below that. If your balance hit $51,000 for just 1 day then that is the value that is used as the minimum value for that year. As far as them having your money for the rest of your life and not paying anything other than the principal, that is simply not true. "Guaranteed return" means that is the MINIMUM you will get back (minus any qtrly or monthly fees)
John SD
Well-known member
Caustic Burno":rdz2m8c4 said:
I just got notice of a maturing CD in the mail today. $25K deposited in the local bank 3 months ago @ 0.05% = $3.15 interest earned during the 3 month period.
Yes, you read correctly. $25K x 0.05% x 3 months = $3.15 Not even enough to buy a gallon of gas. :yuck:
:roll: Good thing I'll probably have to tap into the CD anyway to pay off Uncle Sam. :roll: :roll: :roll:
millstreaminn
Well-known member
I couldn't take it anymore. Sold 1/2 of my position in the market this morning. Watching 3-4K a day evaporate on paper over the last 10 or so days can really wear on a guy. I may buy back in at a later point, but it's gonna take awhile for me to "feel good" about it again.
TexasBred
Well-known member
.05%??? Never seen anybody pay that little on anything. I'd check and see if it was a mistake. He// I'll pay you .5%.John SD":3pbrodus said:Caustic Burno":3pbrodus said:
I just got notice of a maturing CD in the mail today. $25K deposited in the local bank 3 months ago @ 0.05% = $3.15 interest earned during the 3 month period.
Yes, you read correctly. $25K x 0.05% x 3 months = $3.15 Not even enough to buy a gallon of gas. :yuck:
Good thing I'll probably have to tap into the CD anyway to pay off Uncle Sam. :roll: :roll: :roll:
TexasBred
Well-known member
To sound like the typical cattleman. Let the bottom fall out to the tune of 40 grand and sell....wait for it to turn around ....wait a awhile and buy back in. :bang:millstreaminn":tziyreib said:
TexasBred":1qtsr9li said:
I sold after the first 200 point drop. I smelled this acomin for a while. Fidelity is trying to get me to buy back into a fund called retirement 2013. They are talking about income avging by buying 10 thousand a month for a couple of years.
Does that make sense Richard?
cross_7
Well-known member
I quit saving and spend what I make and all I can borrow
I plan on living it up now and never live to be old enough that I can't work
I plan on living it up now and never live to be old enough that I can't work
cross_7":2gor7n49 said:
My very good old friend Bill Mc------ had the same thought. He took his retirement up front. He lucked out so to speak. He died at 75yrs old about a week after he officially ran out of money...........I imagine he's laughing his sorry old ass off somewhere. God Bless Him. :tiphat:
