COMMON SENSE

Skepticism runs deep in my psyche along with a mistrust of the often touted ‘expert opinion’. I also dig my heels in when I feel I am being sold something with scare tactics-as in do this OR ELSE.

I put money aside every paycheck into my 401K, I save into our emergency fund (and now house fund) money market account, I put extra toward the principle of our mortgage (which translates as ‘death-grip’ BTW). But I have a tip about this hot new investment that I plan to give a whirl-MYSELF!

Last year’s financial crisis was something of a revelation for me. Watching my carefully gathered funds just vanish made me feel helpless, just totally powerless. It was soon after that I reduced my 401K deduction drastically. Instead of putting money in a precarious house of cards, I wanted to invest in my own house-my own homestead-my own ‘retirement’. Yes, my taxable income is higher, but I feel it is a small price to pay for honoring that inner-voice.

I have made the decision to look at retirement in a whole different light. For many, retirement is the tantalizing carrot dangling just out of reach, waiting as a reward for 40 years of unrewarding work. ‘When I retire I will be able to enjoy my life.’ ‘When I retire I can really get into my hobbies.’ I don’t have any intention of waiting.

My investment in our future is starting now, while I am still healthy and strong. My husband and I can still break ground, install fencing, and start an orchard; if I wait until 65 that will not happen. I do not plan to retire to The Village in Florida, or play a lot of golf, or go on cruises when I am old. I foresee myself working part-time until I am physically unable (I do love my career when I can find balance!). I see myself helping to raise my (great?) grandchildren.

Compound interest is a wonderful thing and don’t get me wrong-I will continue to save and invest. But I am going to ‘diversify my portfolio’ just a little!

Twenty years down the road-worst case scenario: my 401K retirement nest egg may dry up and blow away, the FDIC may not be able to keep up with banking collapses, food and fuel prices may skyrocket. But with acreage owned, goats in the shed and potatoes in the clamp, I can feed myself. With a wood plot and a passive solar design I can stay warm. With solar panels I can pump water. You get the idea. I may not be saving for the future but I sure as hell am investing in my future.


A Small Life – http://hickchicks-smalllife.blogspot.com/

Technorati Tags: 401k, business, Compound interest, emergency fund, Federal Deposit Insurance Corporation, investing, Investment, Money market deposit account, retirement, saving

Bookmark It

Hide Sites

Last week, while the stock market was ending the month with the best September in many year, the Democrats were proposing massive changes in your 401k plans.  The need for greed as the Obama administration spends it self into a third world country is desperately needing more money.  The CBO said we are 1.4 trillion in debt, just this year, and that figure will rise to over 20 trillion over the next 9 years if interest rates remain at all time lows!
==

U.S. Deficit for 2009 Totals $1.4 Trillion, Budget Office Says

By Brian Faler and Julianna Goldman

The nonpartisan CBO said yesterday the government was squeezed on both sides of the budget ledger in the fiscal year that ended Sept. 30. Tax revenue  fell by $420 billion, or 17 percent, to the lowest level in more than 50 years.

Individual income taxes, the biggest source of tax receipts, fell by 20 percent, the agency said. Corporate income taxes dropped by 54 percent, reflecting the slow economy.

Technorati Tags: 401k, financial, george miller, Investment, retirement, Rush Limbaugh

Bookmark It

Hide Sites

Part 4 of the Buy and Hold Myth series shows the current secular bear market, beginning in 2000-2003.  The beginning of every Secular market, lasting 18 years, begins with the short term cyclical market (lasting 18-36 months) of the same type.

Currently, if you measure your current rate of return since the year 2000, you may you will be disappointed.  The next few days, you should receive your quarterly 401k statements. Do you dare to open them up and compare your results since the last quarterly statement? To read more about my Market Cycle theory check out my blog post last year, warning investors, at “What is the Weimar Republic?”

Technorati Tags: 401k, 9 myths, bear markets, buy and hold, funds, investing, Investment, market cycles, retirement, secular market, technical analysis, Weimar Republic

Bookmark It

Hide Sites

The buy and hold myth continues with part 2 of 6 explaining how long term investors are gambling on their family’s financial future.   Barrack Obama urges “common sense” in financial regulations.

Tuesday September 15 2009

US President Barack Obama, speaking a year after the Lehman Brothers‘ collapse, warned against complacency as the financial crisis ebbs and said the US must have a new regime of “common-sense” regulations to avoid another market meltdown.”

I am urging those with 401k’s, 403b plans to use a little common sense when you are choosing a long term buy and hold strategy. During this Secular Bear market, lasting 18 years, you should take steps to protect any gains you have left.

Technorati Tags: 401k, 9 myths, baby boomers, bailout, banking, bull market, buy and hold, common sense financial, investing, Investment, market, market cycles, obama, part 2, retirement, technical analysis

Bookmark It

Hide Sites