Where do we Invest in 2012 and beyond????

Quote from oldtime:


now you need more money, the professor needs more money, the doctor needs more money, not because of inflation, all because of crude.
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I don't care if crude or oxygen are causing prices to rise, the fact remains that inflation is upon us, and the government (and media) is telling us otherwise. Pure, unadulterated bullshit, if you ask me. Also, I feel it's bubble time with equities, bonds, and commodities.

Your suggestion of moving my 401K to IRA is a good one, if that's legal - I assume there are no taxes paid on that sort of transaction (unlike a move to a Roth). Doing so would allow me to invest some of my money in a "short" or "reverse" bond ETF I guess, or any short-type ETF. Although inflation usually works in favor of equities, I think that some of the overriding economic "doom and gloom" will let the air out of them soon.

Like you said, I can keep my money in cash and watch it erode to inflation. Perhaps that is a viable strategy, if long strategies in equities, bonds, and commodities are ready to implode, and I don't feel comfortable investing my 401K money in short ETF's.
 
Quote from hayman:

I don't care if crude or oxygen are causing prices to rise, the fact remains that inflation is upon us, and the government (and media) is telling us otherwise. Pure, unadulterated bullshit, if you ask me. Also, I feel it's bubble time with equities, bonds, and commodities.

Your suggestion of moving my 401K to IRA is a good one, if that's legal - I assume there are no taxes paid on that sort of transaction (unlike a move to a Roth). Doing so would allow me to invest some of my money in a "short" or "reverse" bond ETF I guess, or any short-type ETF. Although inflation usually works in favor of equities, I think that some of the overriding economic "doom and gloom" will let the air out of them soon.

Like you said, I can keep my money in cash and watch it erode to inflation. Perhaps that is a viable strategy, if long strategies in equities, bonds, and commodities are ready to implode, and I don't feel comfortable investing my 401K money in short ETF's.
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yes, I have too much money in cash and I am letting it erode because I like that better than the alternative. Take a very careful look before you roll into an IRA, the choice between Roth and Simple is not as clear cut as you may think. You have to make a guess where tax rates are going. If you think they are as low as they ever will be, a Roth becomes more attractive, but it also depends on what bracket you anticipate yourself being in. No law says you can't split it. The Roth is kind of an important one time decision.
 
Quote from oldtime:

yes, I have too much money in cash and I am letting it erode because I like that better than the alternative. Take a very careful look before you roll into an IRA, the choice between Roth and Simple is not as clear cut as you may think. You have to make a guess where tax rates are going. If you think they are as low as they ever will be, a Roth becomes more attractive, but it also depends on what bracket you anticipate yourself being in. No law says you can't split it. The Roth is kind of an important one time decision.
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Yes, I agree. I have 2, 401K's.....one is a solo 401K that I have for my business, and can invest in anything I like. The other is from a past employer, which severely limits my investment choices. Lots of "Financial Experts" are touting the move to Roth, but I don't personally buy that advice. It is a function of income projection and if/when you think tax rates will increase (and by how much). I'm 53, and looking to start tapping my 401K's by 63, but possibly as early as 59 1/2. I don't anticipate a significant tax rate hike over the next decade or so, but who really knows??? It's all a gamble. I still like 401K over Roth because of the tax benefits and the compounding of this tax saving over time.
 
Quote from hayman:

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CD's and Money markets pay crap too, and certainly are not keeping up with the rate of inflation.

Here in NY, real inflation (forget this bullshit CPI statistic) is somewhere around 7-8% for me. This due to rampant increases in food, electric utility, home heating oil, health insurance increases, tuition increases, gasoline, local taxes, etc., etc., etc.
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Your casual observation of the real inflation rate is consistent with:

www.shadowstats.com

The core inflation number is obviously not applicable to real life on this planet, but neither is the government "headline" inflation number, and that's the one that should reflect real inflation , but it's too low as well. My guess is the discrepancies have to do with governments use of hedonics, to arrive intentionally at a low ball figure.

Rule of thumb, add 3% to the headline number. www.investopedia.com/terms/h/headline-inflation.asp
 
Quote from oldtime:

yes, I have too much money in cash and I am letting it erode because I like that better than the alternative. Take a very careful look before you roll into an IRA, the choice between Roth and Simple is not as clear cut as you may think. You have to make a guess where tax rates are going. If you think they are as low as they ever will be, a Roth becomes more attractive, but it also depends on what bracket you anticipate yourself being in. No law says you can't split it. The Roth is kind of an important one time decision.
More...

A major advantage to the Roth for some is that there is no mandatory withdrawal starting at age 70.5.
 
Quote from piezoe:

A major advantage to the Roth for some is that there is no mandatory withdrawal starting at age 70.5.
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living to 70 is the least of my worries, I've had a lot of fun and am paying dearly for it now.

When I am dictator I am going to make all grade school children manage their grandmothers retirement account.

What was that Roth said? Something about a bird in the hand....
 
here is just two titles for articles from today's yahoo-

Caterpillar's CEO warns of economic uncertainty: FT

LONDON (Reuters) - The global economic outlook is more uncertain now than at the start of the financial crisis in late 2008, chief executive of Caterpillar , Doug Oberhelman, said on Monday.
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http://news.yahoo.com/caterpillars-ceo-warns-economic-uncertainty-ft-232211036--sector.html

meanwhile-

S&P 500 holds near 4-year high

http://news.yahoo.com/p-500-holds-near-4-high-083523652--finance.html


go figure...:p
 
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