Hello I noticed a few people state one shouldn't put all their retirement into one basket or into only pm's so I'm posting this about investing inyour retirement with PM's should it be like this? your retirement = 100% of your savings since I don't believe SS will be around in 35 years or so and of that I heard 30-50% should be in pm's and of that percent 40% silver 20% gold 15% platinium and the rest is other pm stocks or more of a specific PM you may well enjoy like ASE's or AGE's ect... is this right or wrong or just needing tweaking?
People have been claiming ss wouldn't be around for the past 60 years. Metals may be ok for short term, but have never proven better than traditional retirement plans over the long term. I don't know how private 401k's work, but my employer provided one matches my contribution up to any percentage, and I put in 18% before taxes and have fared better by five fold what any metals have accomplished over the long term. And thats just my play money for the future, on top of my employee retirement (we don't pay into ss so I won't get that). Because the ratios are different for us all depending on income and employment, a lot of individual research is required. I suggest consulting your accountant before sinking a lot of money into anything. Guy~
I think it is wrong. It's okay to assume SS won't be around. If it is, that's a bonus but everyone should attempt to be responsible for their own existence in my opinion. But over a 35 year span, equity investments in businesses [i.e., stocks] should outperform metals, bonds and just about everything else. Gold, for example, does not have the same characteristics of a stock. It isn't a business and doesn't have earnings. Gold is much closer in character to an investment in a sound foreign currency. I think it is okay to invest about 5-10% of your funds in bullion in place of part of the bond component of a diversified portfolio. Keep in mind that I am not a registered investment advisor, know nothing of your particular circumstances, and can only give my opinion with no guarantees that it will work.
I guess I said it wrong I meant that as part of your retirement if you retired now and in 35 years when I am considered to be able to retire (age 65) I should or am suppose to do as I said earlier to make sure I at least still have the capability of being retired without having to work at wal-mart as a greeter. pm's are meant to still have assets if the economy crashes and or if hyper inflation is reality
You can be prepared the best you can , and then the rules can be changed retroactively. All holdings: stocks, cash, precious metals, rental property, home property, etc. go through cycles over the decades, so you must have a balance so something is always near its top when the day comes, or you will be extending your work career to postpone it. 1 years ago was a good time to buy gold stocks, not now in my opinion. Now is a good time to buy select properties, not 3 years ago ( which I did a couple, but in a college environment where rentals still pay the mortgages. A balance is a must. Some went all in housing when it was the boom, some are going all in PM now that it is a boom. Buying a rental now is not a boom, but will possibly be the smart thing down the road. If you have a 401K , consider with an advisor, using your funds to buy some of it out and into a Roth, especially if retirement is near or you are over 60. It is a b***** if you retire and take out of your 401K during retirement and having to pay taxes on it, declare it on your income tax, and pay more for Medicare due to increased income. If you transfer it to a Roth Ira, all gains within are not taxable when withdrawn, and do not change your income level. Read about the special tax rule for paying the taxes to change 401K to Roth IRA. I am not a financial advisor, all IMO. Jim
It is extremely disturbing to think that investing in precious metals is a safe heaven. Those who invested in silver and gold back in 1980 never made any profit up to today even with the high metal prices right now. If you have that much money lying around, go and invest on more education, certificates, trades, skills, etc. No one can ever take away the value of education away from you. Never unless you have amnesia or other related disease.
Personal opinion here...given a 35 year time horizon, I believe dollar cost averaging into a low expense (e.g. Vanguard) S&P 500 Index fund out performs PM investments in just about any mix of fluctuating interest rate/inflation scenarios.
Here you go Alex! The economic bust has thrust many boomers into a cruel dilemma: they've aged out of the job market, yet the economy refuses to let them grow old gracefully. Disintegrating job security and the wild swings of Wall Street reflect an economy trapped in a perverse adolescence—banking on short-term thrills at the expense of the stability that enabled past generations to build more modest dreamshttp://inthesetimes.com/working/entry/4976/recession_besieges_older_workers_with_new_problems/
Ok, but how much of that stock increase in price is due to actual asset value increase versus inflation. You and I both know that the Dow could go to 40000 in the next ten years based on inflation. So, what will hold the value of your money over the long term?
Inflation effects gold's spot price as well, so it's all comparatively relevant. Given inflation's impact on both, stocks still fare much better. Guy~
But what I am saying is that it really depends on the rate of inflation. Currently stock values are based on nothing. That growth fundamentally is not there. It is the banks trying to pull money from the sidelines. I am saying that precious metals will perform better in an inflationary environment. Look at the 70's and early 80's for instance.
Most of the increase will be due to inflation. But people tend to underestimate how difficult it is to beat inflation. Just staying even is a tremendous accomplishment. Gold will probably stay even with inflation over very long periods of time, but not after taxes. And if gold does particularly well, expect ownership to be outlawed or subjected to windfall profits taxes. For myself, I'm relying mostly on selected stocks to stay even with or ahead of inflation. I think investing in index funds is a losing game due to the way they are constructed. Jack Vogel, formerly of Vanguard, has been running around preaching the value of index investing for more than a decade. Over that period of time, nobody who followed his advice has made a dime and now find themselves significantly behind the inflation benchmark and likely never to catch up. No, it isn't easy.
I would be interested in where people have seen inflation really increase in the last year. I haven't. I did make some money on UGA ( US Gasoline) calls earlier in the year, but after that, I have not seen the price increases in anything the general populace might normally buy ( and they don't normally buy PM or jewelry). Here is an interesting read. It is from may, but I think it is still mainly true. http://www.nytimes.com/2009/05/29/opinion/29krugman.html Jim
The big increases in my area that come to mind are food prices in general and produce in particular, property taxes, health insurance premiums, auto insurance premiums, my son's tuition, and a very large increase in the water bill due to a rate increase, not usage. Edit: Krugman's article is puzzling. He says the Fed isn't printing money, just buying private and US Treasury debt. Well, that's how money is injected into the economy. I know that he knows this, but the question is why would he write this?
A lot of that is because of your local economy, not national. I've seen just the opposite where I live, such as food prices almost half of what they were two to three years ago, and water hasn't changed in over 20 years. Localized inflation happens quite regularly all over the country during all types of economic situations. Guy~
As far as produce, it's true. Of course, I guess it helps when most of it is grown withing a 10 mile radius. Not sure where you live, but in the southwest, fruit and vegetable prices don't fluctuate much if at all, even in winter. Most prices have fallen in this area with innovations in growing and harvesting. Guy~
On the tack the thread has taken, a year ago gas prices were at least 1 dollar higher, food has inched up at least 10 percent ( i buy the groceries) weirldy enough, pet food has gone way up, at least the kind we feed our cat pogo. Taxes are higher, mainly because the decrease in property values is not reflected in assessments. As for investing the consensus of the board is pretty good, diversity, put all your eggs in one basket you better keep a sharp eye on that basket.
We don't have anything to worry about Obama and the liberal left that is in power will save us all even if they have to drag us kicking and screaming to Goverment Program promised land. Sorry if this is too politlcally correct for anybody, but with all the bail outs and now the socialized owning of ounce private auto makers whats next. You need to be able to take care of yourself because one day a loaf of bread could cost a days wages. Don't believe none of this I just wanted to rant some gloom and doom. God bless America and keep on collecting for whatever reason.
I think you need to take your discussion to the PRWE board where someone might think partisan political comments are relevant.
