Best savings plan for my future - Page 3 - PeachParts Mercedes-Benz Forum

connerm · #31 09-09-2011, 07:10 PM

How big of a chunk does it cost to be in the union and might that chunk serve you better elsewhere? Unions took a hit in WI recently and there are similar battles brewing in many states.

boneheaddoctor · #32 09-09-2011, 09:45 PM

Quote:

Originally Posted by connerm

How big of a chunk does it cost to be in the union and might that chunk serve you better elsewhere? Unions took a hit in WI recently and there are similar battles brewing in many states.

You don't really have a choice sometimes....unless you work in a right-to-work state.

DC isn't right to work. You were given a choice....join the union, or work someplace else. I joined the Union as that was the best opportunity at the time.. as years past, it remained the best opportunity. It still does. But then, in this economy....any job you have is.

As I have said before.....it has its good and its bad. And they have for the most part balanced out. I forget the exact amount of dues....I think its an hours pay a week? Or maybe half hour....yeah its adds up, and my only objection is that much of its wasted on political stuff that really isn't what I see as in our best interest.

If it was all spent on union stuff, and the benefits...and some of it is...I wouldn't have any problem with it.

Yak · #33 09-10-2011, 12:30 PM

Quote:

Originally Posted by boneheaddoctor

Under Current administration MY 401K value....LOWER than previous administrations 401k value even after nearly 3 years of additional contributuions..WITH an independent Financial advisor making the recomendations. As well as everyone else I work with experiencing the same thing.

THAT is reality....not propaganda. You can pull anything off the internet....doesn't make it real.

Bloggers have zero accountability and can post anything they want...

Will it go up eventually.....I think so....Historically it always has....but thank god I don't have plans to retire the next couple years.

Trying to dissociate the political partisanship from trying to advise the OP (probably futile, I know...). Long term, dollar-cost averaged, indexed investing can be a prudent way to grow an independent source of wealth. If you are going to invest, do not wait until a specific party has a majority or is in the White House.

BHD's 401k is reportedly down under a time period that he correlates from November 2008 through to the present.

My investments generally, and 401k specifically, are up in that same time period. I am a buy-and-hold, invest-in-indexed mutual funds investor. I don't speculate or sell short. I tried that, wasn't good at it, so gave up

Depending on the time period for comparisons, and the selective memory of boom-and-bust many people will say they're worse off now than they were earlier. However, my investments nearly doubled in 2009. It was a tremendous year. Yes, they're down on a percentage basis since then. Moreso since I continued to buy when prices were going up in 2009 - it cost me more to buy in a rising market.

Arguments have been made that the entire 2000-2010 period is a "lost decade" for investments. This may also be correct, but is in part exacerbated by the growth in the 90's. The market was peaking in 2000. Does this mean "Clinton=90's=good" and "Bush=00's=bad"? No. Investing and economics is a lot more complicated than which party sits in the White House.

If I were to make BHD's argument about my portfolio for the period 2000-2003, it's MUCH worse than the same period 2008-2011. I lost more in that period despite increased contributions. A difference is that it cost me less to buy due to a declining market. When the market recovered, my investments recovered.

It would be facile, and incorrect, to make excuses like "tech bubble, 9/11, Iraq War" as the reasons for 2000-2003 while ignoring "housing bubble, Arab Spring, Euro debt crisis" in 2008-2011. Politics affects the market, but politics doesn't drive the market.

For the OP: save what you can, invest if you're comfortable, reward yourself in small amounts. Don't count on politicians to help. And oddly enough - that almost agrees with BHD thinking/hoping the market will improve. I also think/hope so.

boneheaddoctor · #34 09-10-2011, 12:53 PM

Quote:

Originally Posted by Yak

Trying to dissociate the political partisanship from trying to advise the OP (probably futile, I know...). Long term, dollar-cost averaged, indexed investing can be a prudent way to grow an independent source of wealth. If you are going to invest, do not wait until a specific party has a majority or is in the White House.

BHD's 401k is reportedly down under a time period that he correlates from November 2008 through to the present.

My investments generally, and 401k specifically, are up in that same time period. I am a buy-and-hold, invest-in-indexed mutual funds investor. I don't speculate or sell short. I tried that, wasn't good at it, so gave up

Depending on the time period for comparisons, and the selective memory of boom-and-bust many people will say they're worse off now than they were earlier. However, my investments nearly doubled in 2009. It was a tremendous year. Yes, they're down on a percentage basis since then. Moreso since I continued to buy when prices were going up in 2009 - it cost me more to buy in a rising market.

Arguments have been made that the entire 2000-2010 period is a "lost decade" for investments. This may also be correct, but is in part exacerbated by the growth in the 90's. The market was peaking in 2000. Does this mean "Clinton=90's=good" and "Bush=00's=bad"? No. Investing and economics is a lot more complicated than which party sits in the White House.

If I were to make BHD's argument about my portfolio for the period 2000-2003, it's MUCH worse than the same period 2008-2011. I lost more in that period despite increased contributions. A difference is that it cost me less to buy due to a declining market. When the market recovered, my investments recovered.

It would be facile, and incorrect, to make excuses like "tech bubble, 9/11, Iraq War" as the reasons for 2000-2003 while ignoring "housing bubble, Arab Spring, Euro debt crisis" in 2008-2011. Politics affects the market, but politics doesn't drive the market.

For the OP: save what you can, invest if you're comfortable, reward yourself in small amounts. Don't count on politicians to help. And oddly enough - that almost agrees with BHD thinking/hoping the market will improve. I also think/hope so.

Well you are one of VERY FEW who's investments have gone up (and good for you that you are, I'd love to know how you do it)....very few people can say that right now.....and I know a lot of people....some of them quite wealthy. I know a number of business owners.....and I can say of the large number of people I know personally, not a single one can say they have even been breaking even much less be ahead. And these people are across the political spectrum. I don't limit my associations to like minded people.

If you add in to the mix....I am in the Washington DC as are most of the people I know (but not all) are which has fared far better than most of the rest of the country..... then my observations are more disturbing. I can only imagine how much worse it is in the harder hit areas.

I'm not in complete disagreement with many of the things you say....as you are aware, except that in a depressed economy as we have right now .... political decisions can drive the market in good or bad ways that might not happen during a healthy period.

When the market does eventually recover.....as I believe it will.....yes the investments made during this depressed stretch will gain..before the others reach break-even.

This an important point.....Ones actual age and time to retirement will effect how they view the "long term". In my case, that's 14 years and decreasing.....(assuming I can retire at 64) if I was younger and that was 25 or 30, it would have significantly less impact, I suspect you are younger than me. If I was 60 or more.....right now, it would be a cause for panic.

elchivito · #35 09-10-2011, 03:18 PM

Quote:

Originally Posted by boneheaddoctor

Under Current administration MY 401K value....LOWER than previous administrations 401k value even after nearly 3 years of additional contributuions..WITH an independent Financial advisor making the recomendations. As well as everyone else I work with experiencing the same thing.

THAT is reality....not propaganda. You can pull anything off the internet....doesn't make it real.

Bloggers have zero accountability and can post anything they want...

Will it go up eventually.....I think so....Historically it always has....but thank god I don't have plans to retire the next couple years.

My 403b, same as a 401k took a major dump in the crash, I bottomed out in 09 if memory serves. I had retired and stopped adding to it, just let it sit. I lost 60% percent of the value of a plan I'd been putting significant money into for 30 years. By spring of this year, when I was old enough to take it out without penalty, it had rebounded to it's highest point pre-crash. If it had still been in the *****ter at that point I'd have been looking at other opportunities. Complete recovery under this administration. Big deal.

boneheaddoctor · #36 09-10-2011, 03:23 PM

Quote:

Originally Posted by elchivito

My 403b, same as a 401k took a major dump in the crash, I bottomed out in 09 if memory serves. I had retired and stopped adding to it, just let it sit. I lost 60% percent of the value of a plan I'd been putting significant money into for 30 years. By spring of this year, when I was old enough to take it out without penalty, it had rebounded to it's highest point pre-crash. If it had still been in the *****ter at that point I'd have been looking at other opportunities. Complete recovery under this administration. Big deal.

You got really lucky...glad you did....at your age you would have been in a real world of hurt if you didn't have substantial assets in other places. I know a few people that wasn't lucky enough for that to happen.....so much for retiring for them. Problem is there really aren't much in the way of promising opportunities or safe ones...CD's are bringing less than the cost of the fuel to drive to the bank...everything is crap or so risky you stand a better chance on the tables at Las Vegas or investing in Lottery Tickets..unless of course....you are young enough you still have 20+ years to go. Then its still a good time to get into the market in a big way (assuming proper diversification).

Incidentally my portfolio is pretty well diversified...not lumped up in one risky class.