As soon as I get the cash from the sale of my house
Bear
Posts: 18,953 ✭✭✭
I shall put the bulk of the money in a conservative Vanguard fund,
that has produced dividends of 5% for a decade.The fund is about
60% bonds of various sorts, 30% stock and 10% liquid cash investments.
I will purchase at least 20 ounces of gold using AGEs and perhaps
a few 100 ounce bars of silver.
At that point, I shall sit back, enjoy my retirement and watch
the future unfold as it may. Perhaps overly conservative, but prudent
for a fuzzy old bear.
that has produced dividends of 5% for a decade.The fund is about
60% bonds of various sorts, 30% stock and 10% liquid cash investments.
I will purchase at least 20 ounces of gold using AGEs and perhaps
a few 100 ounce bars of silver.
At that point, I shall sit back, enjoy my retirement and watch
the future unfold as it may. Perhaps overly conservative, but prudent
for a fuzzy old bear.
There once was a place called
Camelot
Camelot
0
Comments
World Collection
British Collection
German States Collection
<< <i>I will purchase at least 20 ounces of gold using AGEs and perhaps >>
Sounds like a fine move Bear and I hope you enjoy it!
<< <i>Regardless of what people do with their money, they should be at peace.
Sounds like a fine move Bear and I hope you enjoy it!
Yet, but it can get unBEARable.
all his life. Good decision Bear.
that I made. OK here they are:
Bulk of money in Vanguard Strategy Fund (VASIX)
Vanguard Health Care Fund (VGHAX) 25,000
Vanguard Extended Market index (VEXAX) 25,000
Camelot
Therefor more conservative investments, while restricting potential profit, also will prevent
severe loses. To be sure, If all hell breaks loose, nothing I can do will save me. I like to believe
that things will not get as bad as some of us fear. I guess the gold and silver will be my disaster fund.
Camelot
<< <i>Where are you going to live, in a den in the woods? >>
I was thinking a den on the beach.
from my home. This Residence provide three great meals a day,
has nursing staff and plenty of trained staff to help if needed.
It is really more like a very fancy hotel but with really old residents.
The important thing is that it relieves me of many obligations and provides
a peaceful and serene atmosphere with medical assistance, when and if it
is necesary. Now I can spend my time on the Forum finding out how to become
a millionaire.
Camelot
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I'm trying to sell several pieces of real estate. My spinal cord injuries will never get better and I'm facing "the move" too. I don't know what turns my collecting may take after that.
hang in there, Bear.
and even begin nibbling at rare coins again. In for a penny, in for a pound.
Camelot
Inflation (devaluation) will now be your biggest enemy. Do what you can to protect yourself. Preservation of "wealth" is primary, profit is secondary.
Be aware of all (if any) tax implications with the sale of and non-replacement of the house. Last house I sold was 15 years ago, so I'm completely in the dark with that.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
made to the house over 40 years plus the initial cost, left a profit that at
15% will cost me 70,000 dollars in taxes. I am not sure when I will have to make
that payment, but I will not be gambling with that money. It goes in the bank no
matter how small the rate of interest may be.
As to preservation of wealth, because of my medical condition, I do not have the luxury of
a long time line for investments. Thus, my most conservative approach to the problem thru
Mutual Funds, cash in the bank,elimination of debt, gold and silver as well as a few select rare coins that I hope
to purchase. The comment on bonds may well be true, but I do not believe that the Government
can afford to allow interest rates to explode upwards. Such a development would present extreme
pressure on the already out of balance budget, as well as crushing the value of all Federal, municipal,
commercial bonds and higher risk high income bonds.
In today's environment, there is no truly safe formula for capital preservation. All we can do is to diversify
in a manner that perhaps will minimize the worst of what is to come.
Camelot
Revised list:
<< <i>I shall put the bulk of the money in a conservative Vanguard fund,
that has produced dividends of 5% for a decade.The fund is about
60% bonds of various sorts, 30% stock and 10% liquid cash investments.
I will purchase at least 20 ounces of gold using AGEs and perhaps
a few 100 ounce bars of silver.
a few dozen jelly donuts.
At that point, I shall sit back, enjoy my retirement and watch
the future unfold as it may. Perhaps overly conservative, but prudent
for a fuzzy old bear. >>
Every now & then, there is an article that highlights the relationship between the rate of inflation and the rate on 10 year Treasuries. This relationship known as "the real interest rate".
I'm a believer.
When the rate on 10 year Treasuries falls below the rate of inflation, the "real interest rate" falls below zero, i.e. it goes negative. When this happens, precious metals always rise, or remain rising. At the same time, bond prices react in the opposite direction (as interest rates rise).
This is why figuring out the real rate of inflation is absolutely critical to knowing whether to invest in gold & silver vs. bonds. And the government always lies about inflation.
The government has a self-interest in making bond returns look better than they really are, relative to inflation. Over the years, the government has changed the methodology for calculating the rate of inflation, and in each case - the new bias in reporting inflation is to make inflation seem lower than it really is, which makes government bonds look like a better deal than they really are.
If inflation is higher than bond yields, bonds are a common trap. If rates stay low and you keep the bonds, you get a constant payout but the payout is worth less and less. And if rates do increase your principal is attacked.
Today is no different. I don't know if I'll ever put money into bonds or a bond fund again. For me, this wouldn't change regardless of my time horizon. There is a price for a fixed rate of return. Whenever the inflation rate exceeds the rate on 10-year Treasuries, bonds have a built-in penalty - and in this environment I don't see the potential for an upside. Just my 2 cents.
I do like the fact that you are buffering your bonds with a precious metals component.
Good luck either way, Bear.
I knew it would happen.
of about 50%/50% stocks vrs bonds. Add in the PMs and rare coins
and the mix is not as top heavy in bonds as one might first suspect.
While most of us recognize, that we face a future of drastic change,
no one is sure, exactly, what direction that change will move in. While I
am uncomfortable with stocks as well as bonds, one ,must place money
somewhere, rather then leave it in the bank and watch its value erode
on a daily basis.
I do believe ,the jelly donut investment, will provide some measure of
satisfaction, if only in my tummy.
Camelot
This collection will probably not exceed 8-10 coins but each will represent an example of coin series
I find esthetically beautiful. As soon as the coins are received and payed for, I will post them to the coin
Forum.These coins may not be the most expensive examples, but they will be extraordinary in appearance.
After IO have the coins in hand, I will give you all my opinion of the coin and specifically why I purchased each
particular coin.
Camelot
Churchill quotes
<< <i>OK, I have just started my new purchases of jaw dropping coins from Michael Prince at Harlen Burk Co.
This collection will probably not exceed 8-10 coins but each will represent an example of coin series
I find esthetically beautiful. As soon as the coins are received and payed for, I will post then to the coin
Forum.These coinsmay not be the most expensive examples, but they will be extraordinary in appearance.
You da BEAR!