The New Normal

[Ike Bana]

Originally Posted by merrylander

Finn we can't afford to put what is left of my IRA in anything but bonds. I thought tax free munis were safe until Franklin Templeton managed to lose 10K for me.

That hurts. Watch out for the bonds though. Interest rates won't stay low forever.

[whell]

Originally Posted by merrylander

Finn we can't afford to put what is left of my IRA in anything but bonds. I thought tax free munis were safe until Franklin Templeton managed to lose 10K for me.

I'm sure the Detroit bailout factored into some of that loss somewhere.

[MrPots]

Remember back when CD's were earning 12.5%?

[Ike Bana]

Originally Posted by MrPots

Remember back when CD's were earning 12.5%?

Yep. I remember back in the 80's one year my mother had some money in a money market fund that paid just under 20% for the year.

[merrylander]

Originally Posted by whell

I'm sure the Detroit bailout factored into some of that loss somewhere.

Hardly as they were not Detroit or Michigan tax frees.

[whell]

Originally Posted by merrylander

Hardly as they were not Detroit or Michigan tax frees.

Doesn't matter. The Detroit bankruptcy created a bit of a (hopefully short term) flight from the bond market, which had a negative impact on the performance of the bond market.

[finnbow]

Originally Posted by merrylander

Finn we can't afford to put what is left of my IRA in anything but bonds. I thought tax free munis were safe until Franklin Templeton managed to lose 10K for me.

Your capital is always subject to loss when investing in bonds, whether corporate or municipal. When interest rates go up, the value of your bonds goes down (and vice versa). AFAIK, Franklin Templeton isn't capable of manipulating interest rates.

[Dondilion]

Originally Posted by BlueStreak

Unfortunately, there is truth in both of these statements. And, Ike, it's not just those who are retired. Anyone who will retire some day, (And they will whether they like it or not.), had better be saving to prepare for retirement or they will end up homeless or living with their kids.

And, trust me, very few of them a saving adequately.

Even bigger trouble ahead.

Dave

It is very difficult for the average Joe to save adequately in a
city like this. Shelter takes a big bite out of the income. If you have to
have your own transport there goes another bite. If you have children
you are in for it.

Anyway one still needs to adopt an attitude...I should like to one day to own a home, I should not be averse to public transport, I should not be fathering/mothering many children, I should not spend money willy nilly
and should be very careful about credit cards.
Learn to cook and know something about investment/wall street.

And finally do not be a patsy for families and relatives.

[BowTied]

Originally Posted by BlueStreak

"So....America is becoming a renter nation? Great! Well, we have some tips on how to shop for rental homes this morning..........................."

"Great"? How is it "Great" that America is turning into a "renter nation".

It's great because renting means that more people aren't property owners, private ownership, naturally, being contrary to Marxist principle. The Left has been moving us in this direction for decades, but too many people are too idiotic to notice, and many others have been brainwashed to covet what others have and they don't.

[merrylander]

Originally Posted by finnbow

Your capital is always subject to loss when investing in bonds, whether corporate or municipal. When interest rates go up, the value of your bonds goes down (and vice versa). AFAIK, Franklin Templeton isn't capable of manipulating interest rates.

AFAIK they were not very capablke at anything, it was an investment recommended by our former financial guru. Regardless what we have now is quite secure and hopefully Ms. Yellen will stop this silly 0 % interest as the only people that is helping are the banks, sure as hell not doing diddly for the average Joe.