View Full Version : Where are we investing now?
I’ve been increasing my stock allocation back up a small amount. Investing in emerging markets, China, Russia, etc. But not a large amount.
What I’m worried about is bonds currently make no sense to me, and money market rates are a joke. I’m also conserned with the value of the dollar.
it’s to late to fill storage lockers with ammo and reloading supplies, none are available. Real estate seems high and I don’t want to be a landlord, especially now that the government can stop eviction.
So where does a saver put cash that will be worth less as the government printing presses are gearing up?
MRE’s might be a smart move. I’m not thinking things will get that bad. And storage could be a problem.
https://www.youtube.com/watch?v=qsMc-IswG3w
https://www.youtube.com/watch?v=qsMc-IswG3w
Seriously though, I'm not changing the basic boring boring mini-max boring strategy I've used for decades now.
I am not investing in these but you might want to try toilet paper. Disinfectant spray. Pizza chains. Bicycles. Computer parts. See also my Covid Winners thread.
My DH tells me gold is set to appreciate.
Staying the course here. Enough of our retirement income is effectively annuitized that we don't need to be really defensive about our stock holdings. We're very light in bonds, right now, though, for just the reason you mentioned.
For cash, on-line banks seem to offer better rates on CDs. Some people like I-bond savings bonds, which are, in part, tied to the inflation rate. SPIAs (Single Premium Immediate Annuities) work for some people; if nothing else, they even out income flows even if they're not a spectacular hedge against inflation. But nobody knows nothin'. ;)
My DH tells me gold is set to appreciate.
That's called "commodities speculation", and not "investing".
I've never regretted my I-bond purchases, although with the annual limit some people may need to purchase them in multiple years to amount to a reasonable percentage of a portfolio. I suppose if inflation is a big worry there could be an angle that makes sense with TIPS. I small amount in a floating rate high yield bond fund that carries some risk, but fits in with other things I own.
I've anticipated some sort of higher inflation for most of Trump's reign and his expansion of debt, but it just hasn't happened. My personal forecast doesn't include any exceptional inflation or interest rate change in the near future, but it doesn't hurt to diversify. One day there may be the Piper to pay.
That's called "commodities speculation", and not "investing".
Isn't a whole lot of investing based on speculation? What's a hedge fund if not legalized gambling?
dado potato
1-4-21, 12:10am
I've never regretted my I-bond purchases.
I will be buying my annual limit of Treasury I Bonds in a couple weeks. The real rate of return is likely to be zero, but that is significantly better than the APY in savings accounts, where the real rate rate of return is negative. Every month the value of each I Bond increases, and payment of interest and principal is backed by the full faith and credit of the United States.
At my stage of life, preservation of capital is a more salient goal than growth. The entire long-term investment portfolio includes diversified equities as well as fixed income (about 50:50). I don't foresee buying more equities, unless the prices are considerably lower.
[QUOTE=dado potato;371822]I will be buying my annual limit of Treasury I Bonds in a couple weeks. The real rate of return is likely to be zero, but that is significantly better than the APY in savings accounts, where the real rate rate of return is negative. Every month the value of each I Bond increases, and payment of interest and principal is backed by the full faith and credit of the United States./QUOTE]
I might add that tax on interest at the federal level is tax deferred and tax exempt for state reporting.
Water and anything space.
The problem I see with I Bonds is that if you die they will be part of probate. I cashed in some this year because I am not sure if others would understand how to cash them in and what the tax ramifications would be. I am trying to make everything easy for heirs.
dado potato
1-4-21, 6:21pm
The problem I see with I Bonds is that if you die they will be part of probate. I cashed in some this year because I am not sure if others would understand how to cash them in and what the tax ramifications would be. I am trying to make everything easy for heirs.
If I die before some sort of financial shock comes along which causes me to cash in I Bonds, they are registered as POD, payable to my spouse on my death. I believe the I Bonds would not be involved in probate, if my wife survives me.
If I wanted to register somebody other than my spouse as POD, I would talk to a lawyer familiar with marital property rights (I live in a community-property state), about obtaining her consent. I do not expect that I will want to do this.
If I survive my spouse, I believe it would be possible to change the POD registration to other individuals.
You are correct dado potato... if the bonds are properly registered there would be no probate.... ie POD. The ones I cashed in were my name only no POD and no interest being earned. Didn't make sense IMO to keep them.
https://treasurydirect.gov/indiv/planning/plan_estate.htm
Isn't a whole lot of investing based on speculation? What's a hedge fund if not legalized gambling?
https://www.investopedia.com/ask/answers/09/difference-between-investing-speculating.asp
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