This looks like the right place to ask this question

1970s

New to the boards.

Simple question.

The stock market will always be a good place to have your money because

A. That's where the big money goes, and why not hitch along for the ride.

B. The stock market has had a history (with corrections) of always moving higher.

C. The American dollar is still King, and why get out of the US market until that changes.


Please read my question before you form your thoughts, and I'd appreciate naysayers too. My question says "the stock market will
always be a good place to have your money". It doesn't say the stock market is "the best" place to have your money.

As I approach retirement, it would probably be good to own some gold and silver. I enjoy Peace Dollars and US gold eagles.
But it seems crazy to me to take money out of dividend yielding mutual funds in the US market. It just has performed so well since
my dad began it back in the 1980's. Once he transfers it to my family, it would only make sense to let that continue to sit where's it's been
for the past 30+ years.

I know this makes sense to me, but perhaps others have a different perspective that I would enjoy hearing.

I'm not into the gloom and doom that much, although it could happen. But I see the economy rolling along in this country with peaks and valleys just like it always has.

thanks

rawteam1

zero money should be in any mutual funds...

jmski52

Conventional wisdom is to be diversified and to practice a rebalancing of your portfolio between asset classes periodically.

Some precious metals gurus recommend 5% to 10% in precious metals as a hedge against stock market problems. If you decide to buy metals, do buy what you enjoy, and learn as you go.

There are plenty of vested interests in both stocks & bonds, and in precious metals - who would gladly take your money while telling you what a good decision you've made by doing business with them.

I would say that any move you make should be done gradually, especially if you're buying any precious metals for the first time and especially if it's money that was given to you.

derryb

only question in your post is "hitch along for the ride?"

Answer: yes, as long as the ride is going where you want it to go. When the tide shifts, be prepared to jump on another train, preferably when that train is moving slow (low prices).

OPA

<< <i>New to the boards.

Simple question.

The stock market will always be a good place to have your money because

A. That's where the big money goes, and why not hitch along for the ride.

B. The stock market has had a history (with corrections) of always moving higher.

C. The American dollar is still King, and why get out of the US market until that changes.


Please read my question before you form your thoughts, and I'd appreciate naysayers too. My question says "the stock market will
always be a good place to have your money". It doesn't say the stock market is "the best" place to have your money.

As I approach retirement, it would probably be good to own some gold and silver. I enjoy Peace Dollars and US gold eagles.
But it seems crazy to me to take money out of dividend yielding mutual funds in the US market. It just has performed so well since
my dad began it back in the 1980's. Once he transfers it to my family, it would only make sense to let that continue to sit where's it's been
for the past 30+ years.

I know this makes sense to me, but perhaps others have a different perspective that I would enjoy hearing.

I'm not into the gloom and doom that much, although it could happen. But I see the economy rolling along in this country with peaks and valleys just like it always has.

thanks >>





"If it ain't broken, don't fix it."

However, having part of your assets ( between 5% -10%) in PM's is not a bad idea, along with keeping 10% - 20% in cash reserves ... i/e money market, interest bearing checking or savings accounts.

cohodk

Asking a precious metals forum for stock market advice is like asking your mechanic to check your teeth.

derryb

If you have the research resources and insider knowledge of the stock market and can match the likes of Buffet in your buy/sell decisions then you should be all in with stocks. I suspect people like Buffet know how to rebalance a stock portfolio prior to a correction. They know when to fill the cavity or just go ahead and pull the tooth.

OPA

<< <i>

<< <i>



"If it ain't broken, don't fix it."

However, having part of your assets ( between 5% -10%) in PM's is not a bad idea, along with keeping 10% - 20% in cash reserves ... i/e money market, interest bearing checking or savings accounts. >>




Thanks OPA.

I think I'll get some grade silver peace dollars, along with some gold eagles. I'm 100% certain about that.

Cash reserves is a good idea too. Let's take 1 million dollars as a round number. Are you saying 50k-100k in PM's, 700K in mutual funds, and about 200k in cash reserves ? Sounds like a lot of cash. Not sure I'll need 200K on the spur of the moment. Why so much cash ? Thanks. >>


I indicated 10 - 20 percent ... whatever you feel comfortable with. Gold is easier to store. $100k is less than 77 oz or 7 troy pounds. Cash will always be King and you never know when an investment that you can't refuse, comes along...ie real estate or land. It's also earning some interest and is a hedge against stocks or PM's having a "hard session."

BTW...My scenario is based on Taxable Mutual Funds and not IRA or 401K ones. IF your funds are IRA's or 401k or 403 etc. Just leave them alone unless you're willing to take the tax bite based on ordinary income.

BAJJERFAN

<< <i>New to the boards.

Simple question.

The stock market will always be a good place to have your money because

A. That's where the big money goes, and why not hitch along for the ride.

B. The stock market has had a history (with corrections) of always moving higher.

C. The American dollar is still King, and why get out of the US market until that changes.


Please read my question before you form your thoughts, and I'd appreciate naysayers too. My question says "the stock market will
always be a good place to have your money". It doesn't say the stock market is "the best" place to have your money.

As I approach retirement, it would probably be good to own some gold and silver. I enjoy Peace Dollars and US gold eagles.
But it seems crazy to me to take money out of dividend yielding mutual funds in the US market. It just has performed so well since
my dad began it back in the 1980's. Once he transfers it to my family, it would only make sense to let that continue to sit where's it's been
for the past 30+ years.

I know this makes sense to me, but perhaps others have a different perspective that I would enjoy hearing.

I'm not into the gloom and doom that much, although it could happen. But I see the economy rolling along in this country with peaks and valleys just like it always has.

thanks >>



As I read your post, it appears that this retirement has/is being accumulated by someone other than yourself and you don't say what you are doing as far as saving/investing.

If you want to own PMs, but don't feel comfy taking invested money for that purpose why not just put some new money into it?

rawteam1

Buffet buys companies not mutual funds ...

tneig

I would think Buffet and Gates have more resources and more advisers than most filthy rich guys, let alone one middle class person. So be careful.
These are the kind of guys that set up things, draw you in, then absorb your money and leave. I would not be basing my life on what they do.

Just because things have done well, although glossing too lightly over "corrections", doesn't mean it will always do well. Balance is pretty important.
Access to the money is very important. Trust in the money holder is very important. You could have a private safe full of gold and still lose it or
screw up.

I like precious metals because it provides an alternate to cash in hand in a reasonable form, especially gold. You may want a handful of heavy cash too.

If you had all your money in the stock market and it lost over 1/3 in 3 months, could you live with it?

OPA

<< <i>Buffet buys companies not mutual funds ... >>



True, but Mutual Funds do buy Berkshire Hathaway

rawteam1

<< <i>

<< <i>Buffet buys companies not mutual funds ... >>



True, but Mutual Funds do buy Berkshire Hathaway >>



ahh..... thats the point.... buy it yourself...

OPA

<< <i>

<< <i>

<< <i>Buffet buys companies not mutual funds ... >>



True, but Mutual Funds do buy Berkshire Hathaway >>



ahh..... thats the point.... buy it yourself... >>



Really? @ $200,000+ per share?.....no thanks. I'll leave that to the Mutual Funds

rawteam1

Oh brother... (Eye roll)...

theDabbler

<< <i>

<< <i>

<< <i>

<< <i>Buffet buys companies not mutual funds ... >>



True, but Mutual Funds do buy Berkshire Hathaway >>



ahh..... thats the point.... buy it yourself... >>



Really? @ $200,000+ per share?.....no thanks. I'll leave that to the Mutual Funds >>



Berkshire Hathaway A is $202,600.00
Berkshire Hathaway B is $ 134.90