Helpful financial tips

"...Financially speaking, THIS TIME--it REALLY is different. ..."



I don't know. I think I have read that line ("This time thing's
are different") in the history books. But it never seems to be
really different. People get greedy and do stupid things and
the house of cards tumbles. Usually lots of debt and speculation
are involved.

And almost always smart people see it coming (You?)

And profit from it.





"..We're entering into uncharted financial territory. If America is going to pull out of this economic mess quickly, Americans are going to have to change lifestyles first..."




I think it will pull-out, but how "quickly" is the big unknown. Is "quickly"
5 years, 10 years, ?? years?


And certainly there will be "lifestyle changes." People adapted to
the depression and the austerity of WW II.

When no one will loan them money for the Yukon they will get around
in an AMC Pacer.

Many will discover that renting is a viable option for housing.



Now I don't think the 21st century is the "American" century. The
20th Century was the American century; the 21st century belongs to
China (or so it appears at this point).

Just as the 19th century was (arguably, maybe) the British century.

But just as the British get along fine even through the sun has now
set on their empire, the USA will get along fine.



And Florida real estate will "come back."

Just a question of when.


The first (and only, to this point) Florida real estate that I owned was
a silly little lot over in Port St. Lucie that my Grandparents bought way
back in 1959. Still have the title abstact for it somewhere around here.

When the inevitable big tax assessment came along in the early '80s,
my widowed Grandmother, having never built on the lot, was going to let
it go to tax sale. I paid the assessment and took over the lot and held
it for a few years until selling it since I thought someone was going to
make me mow the jungle on it since the whole developement (platted
in the late '50s) was finally being "built-out."

Although it took over 40 years, I think the area is a "hopping" place
now.

(Or at least was until this last bust.)

It is all a matter of time.

But since I most likely don't have another 40 years left in me, I
need to choose a littler wiser than my Grandparents did.

I need an outlook of no more than 12 to 15 years.

And Florida real estate will "come back."

Just a question of when.

What if this is as good as it gets for the next 10 years?


.

Only had to once in New Jersey at a large grocery store.
I said Mahna Mahna.

doot doooo d' do-do

"...What if this is as good as it gets for the next 10 years?..."




I can handle a 10-year recovery.
Gives me lots of time to procrastinate.

I probably can not handle a 20-year recovery.

Ya gotta wonder if there really is a safe place to hide.


http://socialize.morningstar.com/NewSocialize/forums/thread/2449757.aspx


Bank of Serta looks better all the time.


Looking for a lower opening this morning.


Just to maintain my "Gloom & Doom" title, here is the morning fix:

http://news.yahoo.com/s/ap/20071019/ap_on_bi_ge/stretching_paychecks

Geeez

I hate to be the optimist here but
I don't see this as armagedon but rather just part of
the continueing cycle of boom and bust that is an old, old
story in American finance.

Now, the bigger the boom, the bigger the bust. And we have
been through one heck of a big boom so we can expect one
god-awfull bust but at some point (don't know when) things
will get back to boom again.

Just a never-ending cycle of cycles.

A pendulum swings both ways.

(But I do not)

so, yesterday I was too gloom and doom for you ....

Ya gotta wonder if there really is a safe place to hide.

http://socialize.morningstar.com/NewSocialize/forums/thread/2449757.aspx

Bank of Serta looks better all the time.

Looking for a lower opening this morning.

Just to maintain my "Gloom & Doom" title, here is the morning fix:

http://news.yahoo.com/s/ap/20071019/ap_on_bi_ge/stretching_paychecks

and today you're taking the title back?

I have to disagree with this. Life insurance for children is a bad 'investment', if it can even be called that. There is never a need to insure children with life insurance as life insurance is for replacing lost income. Typically the fees are high on that type of insurance and the 'investments' do not necessarily offer the options that may be best. The time for life insurance is when an adult is earning an income that would need to be replaced should something happen. Many financial planners do not even recommend life insurance for single income earning adults who have no families or dependents.

Better to invest in a no-load indexed mutual fund or set up a custodial account. Even something like buying shares of companies the children will understand - McDonalds, Hasbro, yadda yadda (throwing out names - do your own research) is way better than insurance.

Disclaimer: This is not financial advice, only my opinion. Do your own due diligence.

The idea behind the life insurance was that by starting it early (when we were 2, 4, 5, and 8) it would continue to grow so that by the time we were old enough to be buying houses, be married, have kids, we would have it as an asset. At the time they may have been jumping the gun, but 25 years later, it's a great thing for us to have.

Dad would buy stocks in companies we were familiar with like you said - Disney, Pepsi, McDonalds etc.

"...and today you're taking the title back?..."




Oh, it's going to get bad.


But then it will get better.


If I thought it was going to get bad and stay bad, I
would be looking to buy ordinance and not real estate
or stocks.

FINANCIAL TIPS only!

Please discuss the economy/real estate market of one of the other 8 threads currently dedicated to those subjects!

The idea behind the life insurance was that by starting it early (when we were 2, 4, 5, and 8) it would continue to grow so that by the time we were old enough to be buying houses, be married, have kids, we would have it as an asset. At the time they may have been jumping the gun, but 25 years later, it's a great thing for us to have.

Dad would buy stocks in companies we were familiar with like you said - Disney, Pepsi, McDonalds etc.

Obviously I'm not saying the idea of putting the money somewhere early like that was bad and I don't think they jumped the gun at all - just that the vehicle chosen was probably the worst possible (who's knows, maybe regular savings at some low % may have been worse, although those high rates in the early 80's could have compensated for the low rates later on). I can't run the numbers as I don't have appropriate information but over 25 years, almost anything else would be better.

As opposed to doing nothing, however, it's not horrible.

FINANCIAL TIPS only!

Please discuss the economy/real estate market of one of the other 8 threads currently dedicated to those subjects!

If you've made a vow to pay off your credit card every month: When you use your credit card, subtract the amount from your checking account register so you always have a running total of how much you've spent and how much you've got left to work with till the bill arrives.

Keep all debit/credit receipts from financial transactions with your folding cash in your wallet--then you'll be reminded to take them off the register. (I can't understand folks who let clerks put the credit receipts in the bag; crumple up receipts and stash them in the most convenient pocket or purse; or worse, leave the receipt behind or toss it in the trash.)

Every person should have their own bank account and credit card in their name. Spouses that insist on having only a joint account should only have one debit card and checkbook/register for better control of the account. This forces financial communication and cooperation between the couple.

Use Money or Quicken religiously to keep track of spending, bill-paying and investing. Everyone should know or be able to find their current net worth (within $500) in 5 minutes or less.



.

Avoid extremely negative neighbors. This will save you money on cookie and ice cream binge eating to soothe stress. But if you must eat ice cream try Publix's Moosetracks.

"...Use Money or Quicken religiously to keep track of spending, bill-paying and investing. Everyone should know or be able to find their current net worth (within $500) in 5 minutes or less...."


Oh, I don't think you need to get fancy; You can track that stuff on paper
if you want to.

I don't track expenses much, although I tracked every penny once for a year.
Still have the ledger books.

I have a "spend" account and as long as I don't spend more than what's in that
account, I'm good to go. Combined with discipline it works just fine.


Figureing net worth is good, but I don't know if you can really hit it to within
$500.00 Too many assumed values. You can get close, however.

I figure ours all the time.

You can compare net worth to others in your age group here:

http://tinyurl.com/2ccn9n

Assuming you believe his data.



You can also compare to similar age groups/ income levels/ localities /
professions here:

http://www.networthiq.com/

But it should not be assumed that this is a representative sampling.

Keep all debit/credit receipts from financial transactions with your folding cash in your wallet--then you'll be reminded to take them off the register. (I can't understand folks who let clerks put the credit receipts in the bag; crumple up receipts and stash them in the most convenient pocket or purse; or worse, leave the receipt behind or toss it in the trash.)
.

I have them put my receipts in the bag because:
1) my purse is a black hole
2) A friend learned the hard way that to get reimbursed for lost luggage, the airlines require receipts and the tag off off the clothes. I'm not Martha/OCD enough to do this w/ every clothing purchase, but for any $ clothes purchases I save the receipt and staple the tag to it. Most of my travel is for formal weddings or vacations of a week or more, so lost luggage would be $ to replace.