[Rhodes22-list] Political - big Al delete - Brads economic question - However Big Al have considered that you opinions might be necessary to keep the young'uns in reality?

Fri May 2 16:01:13 EDT 2008

OK all you financial experts, how about a little advice?  What are you
investing in?

Since I'm self-employed I can buy anything I want rather than the
limitations placed upon most employees' 401k plans.  I've been funding my
SEP (self-employed) IRA for about twenty years and I started a ROTH about 15
years ago.  I have about 80% in mutual funds from Vanguard and about 20% in
money markets from Oakmark.  I also have a little in an ING annuity that's
turned out to be a real dog--I'm very sorry I got talked into that one.  I
like products that I can have for a long run so I don't have to fiddle with
frequent rollovers.  I'm no day-trader.

I think I'm doing OK but every April 15th I dump as much as I can into these
accounts leaving myself with a frighteningly low pad.  Basically I spend all
my savings on that illustrious day.  Then the next couple months are sort of
nail biters while I rebuild.   In case of emergency I have plenty of credit
including home equity but of course that costs interest.  I have no debt
except my mortgage.  I'm 51.

So what are y'all buying these days?

Slim

On Fri, May 2, 2008 at 9:27 AM, Herb Parsons <hparsons at parsonsys.com> wrote:

> Most people have very little understanding of economics even at a basic
> level.
> At my office, the owner of the company matches contributions to a 401k
> program up to 3% of an employees earnings. A grand total of 2 people are
> taking him up on it. That $20 into $40 that Brad was talking about....
> right there. If your you're "long term", you'll need the money later. If
> you're "short term", you can just take it all back when you quit, pay
> your 15% penalty for early withdrawal, and you're still way ahead.
>
> When I worked for him at his previous company, he had the same program,
> but we had better participation. I'll never forget one day when the
> market went WAY down. Two or three of the folks were complaining about
> how much money the "lost" because of it. I pretended to take them
> literally and said "you mean you SOLD when the market went down? You're
> not supposed to sell low, you're supposed to BUY low". Then I'd explain
> to them (this time without the sarcasm) that when the market dips like
> that, it means that the money you're putting into your 401k is buying
> more stock. You haven't "lost" anything, unless you sell while it's
> down, but that long term, you are coming out ahead, unless the
> investments you chose disappear completely. A well rounded 401k doesn't
> get hurt by short term market fluctuations.
>
> Rik Sandberg wrote:
> > Brad,
> >
> > Yeah, we used to try to help some of our employees understand where they
> > were going wrong with their personal finances. Start talking about
> > compound interest and watch their eyes glaze over. As concepts go,
> > supply and demand is an even tougher one to get across. They'll bitch
> > about the price of gas, but if they sell their house for twice what they
> > paid for it, they have no problem with that. It's just amazing.
> >
> > Rik
> >
> > "There's a reason why bankers drive Cadillacs and the rest of us drive
> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
> Sandberg
> >
> >
> >
> > Brad Haslett wrote:
> >
> >> Hank & Rik,
> >>
> >> Every time I go to work I have a good laugh driving by the hub workers
> >> parking lot on the way to the pilot's lot.  The hub workersry lot is
> filled
> >> with brand new iron.  The pilot lot looks like a salvage yard and you
> wonder
> >> how some of those beasts made the journey. My youngest son just left
> for a
> >> five month cruise on his USCG cutter and we had a long talk about what
> a
> >> wonderful opportunity this was for him to save money.  Yeah Right!  I
> may as
> >> well have been explaining the time value of money to the remaining
> squirrels
> >> in my backyard.
> >>
> >> Brad
> >>
> >> On Fri, May 2, 2008 at 8:56 AM, Rik Sandberg <sanderico1 at gmail.com>
> wrote:
> >>
> >>
> >>
> >>> Ahhh .... to be young and bulletproof again, eh.
> >>>
> >>> But hey, they're having fun, that's the important thing .... right?
> >>> Somebody'll take care of 'em if they fall on their face. Someone
> always
> >>> has, why would they stop now?
> >>>
> >>> Rik
> >>>
> >>> "There's a reason why bankers drive Cadillacs and the rest of us drive
> >>> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
> >>> Sandberg
> >>>
> >>>
> >>>
> >>> Hank wrote:
> >>>
> >>>
> >>>> Rik,
> >>>>
> >>>> What gets me is the kids (20 somethings) working for me that are
> driving
> >>>>
> >>>>
> >>> 40K
> >>>
> >>>
> >>>> beemers, lexus, etc.  They don't put a dime away, rent an apartment
> and
> >>>> waste all their money on fancy cars.  You can talk to them until you
> are
> >>>> blue in the face and you won't get anywhere.
> >>>>
> >>>> Hank
> >>>>
> >>>>
> >>>> On 5/2/08, Rik Sandberg <sanderico1 at gmail.com> wrote:
> >>>>
> >>>>
> >>>>
> >>>>> Hank,
> >>>>>
> >>>>> Yeah I hear that.
> >>>>>
> >>>>> I am just flabbergasted these days talking to people about their
> credit
> >>>>> habits. How many do you know who would buy that pair of shoes on
> their
> >>>>> credit card, then, make the minimum monthly payment?
> >>>>>
> >>>>> Rik
> >>>>>
> >>>>> "There's a reason why bankers drive Cadillacs and the rest of us
> drive
> >>>>> Chevies. Bankers collect interest,... The rest of us pay it" ....
> Rik
> >>>>> Sandberg
> >>>>>
> >>>>>
> >>>>>
> >>>>> Hank wrote:
> >>>>>
> >>>>>
> >>>>>
> >>>>>> RIk,
> >>>>>>
> >>>>>> I recently bought the most expensive pair of shoes I've ever
> >>>>>>
> >>>>>>
> >>>>>>
> >>>>> bought.  $130
> >>>>>
> >>>>>
> >>>>>
> >>>>>> for a pair of Johnston and Murphy leather dress slip-ons.  I almost
> >>>>>>
> >>>>>>
> >>> had
> >>>
> >>>
> >>>>> a
> >>>>>
> >>>>>
> >>>>>
> >>>>>> heart attack when they were rung up.
> >>>>>>
> >>>>>> Hank
> >>>>>>
> >>>>>>
> >>>>>> On 5/2/08, Rik Sandberg <sanderico1 at gmail.com> wrote:
> >>>>>>
> >>>>>>
> >>>>>>
> >>>>>>
> >>>>>>> Hank,
> >>>>>>>
> >>>>>>> Admittedly interest rates are a bit slim these days.
> >>>>>>>
> >>>>>>> But, the way most people seem to think these days, if they found
> 20
> >>>>>>>
> >>>>>>>
> >>> on
> >>>
> >>>
> >>>>>>> the street, they would only have to borrow another 100 to buy that
> >>>>>>>
> >>>>>>>
> >>> cool
> >>>
> >>>
> >>>>>>> new pair of shoes.
> >>>>>>>
> >>>>>>> Rik
> >>>>>>>
> >>>>>>> "There's a reason why bankers drive Cadillacs and the rest of us
> >>>>>>>
> >>>>>>>
> >>> drive
> >>>
> >>>
> >>>>>>> Chevies. Bankers collect interest,... The rest of us pay it" ....
> Rik
> >>>>>>> Sandberg
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>> Hank wrote:
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>> Pretty soon it would be $40?  What bank do you use?  I want that
> >>>>>>>>
> >>>>>>>>
> >>>>>>>>
> >>>>>>>>
> >>>>>>> interest
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>> rate!!!
> >>>>>>>>
> >>>>>>>> Hank
> >>>>>>>>
> >>>>>>>>
> >>>>>>>> On 5/2/08, Rik Sandberg <sanderico1 at gmail.com> wrote:
> >>>>>>>>
> >>>>>>>>
> >>>>>>>>
> >>>>>>>>
> >>>>>>>>
> >>>>>>>>> Ed & Brad,
> >>>>>>>>>
> >>>>>>>>> Ha ha ..... yeah and if you found that twenty dollar bill and
> said
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>> hmmm,
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>>> a windfall and put it in the bank, pretty soon it would be forty
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>> dollars.
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>>> This (saving) is apparently another foreign concept anymore.
> >>>>>>>>>
> >>>>>>>>> I wunder sumtimes if koledge isn't over-rated.
> >>>>>>>>>
> >>>>>>>>> Rik
> >>>>>>>>>
> >>>>>>>>> "There's a reason why bankers drive Cadillacs and the rest of us
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>> drive
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>> Chevies. Bankers collect interest,... The rest of us pay it"
> ....
> >>>>>>>>>
> >>>>>>>>>
> >>> Rik
> >>>
> >>>
> >>>>>>>>> Sandberg
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>> Brad Haslett wrote:
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> Ed,
> >>>>>>>>>>
> >>>>>>>>>> Good article.  I've watched a number of smart accounting
> students
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> and
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>> MBA
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> candidates struggle with the concept of "sunk costs" because
> they
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>> couldn't
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> remove emotions from the decision making process.  One
> professor
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> used
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>> the
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> example of finding a twenty-dollar bill on the sidewalk.  Is
> its
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> value
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>> zero
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> because it was free or is it worth $20?  If you paid $20 for a
> >>>>>>>>>>
> >>>>>>>>>>
> >>> share
> >>>
> >>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>> of
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>>> a
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> company that failed and went out of business, is your share
> worth
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> $20
> >>>>>
> >>>>>
> >>>>>
> >>>>>>> or
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>>> is
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> it worthless?
> >>>>>>>>>>
> >>>>>>>>>> You'd think that the fear mongers of global warming would be
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> ecstatic
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>> about
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> $4 a gallon gasoline. And yet, the same voices are crying for a
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>> solution
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>>> for
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> high gas prices.  No problem, let's start drilling!  No, we
> can't
> >>>>>>>>>>
> >>>>>>>>>>
> >>> do
> >>>
> >>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>> that
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> because of the "environment".  Fine, let gasoline go to five
> bucks
> >>>>>>>>>>
> >>>>>>>>>>
> >>> a
> >>>
> >>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>> gallon
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> and we'll slow global warming and "help" the environment. The
> laws
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> of
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>> supply
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>> and demand are pretty straight forward provided you keep
> emotions
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> and
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>>> "rights" out of the decision making process.
> >>>>>>>>>>
> >>>>>>>>>> Brad
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>> On Fri, May 2, 2008 at 7:06 AM, Tootle <ekroposki at charter.net>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>> wrote:
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>> Brad stated, "Here's a novel idea for the passenger airlines I
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>> learned
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>>> in
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>>> grad school - if it costs 4 cents to produce your product,
> charge
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>> a
> >>>
> >>>
> >>>>>>>>>>> nickel."
> >>>>>>>>>>>
> >>>>>>>>>>> Then he followed with a question, "Where do we find these
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>> people?"
> >>>
> >>>
> >>>>>>>>>>> Brad, your question presupposes that the readers either
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>> understand
> >>>
> >>>
> >>>>>>>>>>> business
> >>>>>>>>>>> (aka economics) or give a damn.  Remember you are asking that
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>> question
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>>> to
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>>> supporters of Hillary and Obama and maybe even McCain.
> >>>>>>>>>>>
> >>>>>>>>>>> And Michael M has already said that we need to lay off the
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>> subject.
> >>>
> >>>
> >>>>>>>>>>> Apparently the socialists among us have been discretely given
> a
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>> green
> >>>>>
> >>>>>
> >>>>>
> >>>>>>>>>>> light
> >>>>>>>>>>> by Michael M.  One posts an obviously baiting citation of a
> Maine
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>> advocacy
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>>> of national health care.
> >>>>>>>>>>>
> >>>>>>>>>>> I ask you how many understand the following short article?
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>
> http://www.gmu.edu/departments/economics/wew/articles/07/economicthinking.htm
> >>>
> >>>
> >>>>>>>>>>> Ed K
> >>>>>>>>>>> Greenville, SC, USA
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>> --
> >>>>>>>>>>> View this message in context:
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>
> http://www.nabble.com/Political---big-Al-delete---Brads-economic-question---However-Big-Al-have-considered-that-you-opinions-might-be-necessary-to-keep-the-young%27uns-in-reality--tp17017185p17017185.html
> >>>
> >>>
> >>>>>>>>>>> Sent from the Rhodes 22 mailing list archive at Nabble.com.
> >>>>>>>>>>>
> >>>>>>>>>>> __________________________________________________
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> >>>>>>>>>>>
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> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
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> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
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> >>>>>>>>>
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> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
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