School me on investing...

For me its (1) lol... I had my own business and was investing in that. Now that its gone, and I have a stable corp. job again, I can use a little of my savings to play in the market. I turn 42 in April so this dip is going to help me 'catch up'.

 

I'll also say that part of the reason I changed things in late 2019 was 2020 being an election year.

Also, I realized I'm actually an old man now, and I shouldn't be gambling my (entire) future at this age....wife retired feb 2019.

Those 3 things drove me to the conservative change.

 

Thats a great attitude!....just dont get greedy.

 

Hey another "Plus" for BA and LMT stocks in the future is both have ended their pension plans in the last 5 years.

Thats NOT good for the employees....but its great for the stock.

The pension liability for both will do nothing but decrease (as recipients die) from now on.....until it reaches ZERO.

THAT is massive CASH!....that will no longer be flowing OUT.

 

my usage of expert was sarcastic

 

#2 and yearly bonus is paid in March. I took about 1/2 out earlier this year mostly from political risk.

Left all my long term in but did some sector rotation.

 

Boeing has been offering lump sum buyouts to pensioners in the last five years as well.

Recently we switched wealth managers and in doing so, all of our vehicles were cashed out. We have a bunch of cash standing by waiting for an opportunity, and we are going to make some decisions on Monday. However, being a current Boeing employee, I need to "keep my powder dry" (as stated above) as I have no idea what's going to happen in the next few weeks/months/years. My wife is in construction (admin support), and I don't know if the future will be anything like 2008, but that was really concerning for a few months. So we are looking at a mix of long term and easy access liquidity just in case it goes bad.

 

Hey PS....sorry to hear but sounds like you are being proactive. Best of luck sir.

My LM pension was recently sold to an Annuity broker. My first check from them will be Apr 1.....I'm kind of concerned, but there isnt much I can do. There was no lump sum offer.

I'm looking at a couple direct affects.

1. this moves pension plan oversight from federal to state. I'm not encouraged.
2. This deletes the option of me purchasing medical coverage thru LM retirement program

One thing I need to ask about is future LM employment. Basically, I couldn't collect a pension AND an LM salary at the same time. If I went back to work for LM, my pension would "pause" as they put it (stop), until I "Retire again".....I attempted to be hired as a contractor, basically allowing a "double dip" of salary and pension, but it didnt work out, so I stayed on pension instead of going back.......I'm not sure if I can still go back to work and collect my "Annuity" (not pension) at the same time.......If I can, I may go back for a year or 2.

Whats your take on the topic of buy Boeing now or not?

 

My take on buy now or wait? I have no opinion. I'm just trying to keep the shop working, which is a challenge due to labor loss. If no one is there, no one's installing fasteners (my shop fills and delivers the kits with nuts, bolt, rivets). If no one is installing parts, no one is shipping back empty kits. It's tough to figure out. I can guess, but it's not even a SWAG, just a WAG.

I have a couple of coworkers doing contracting post retirement. If I could get that gig, that would be the ticket. But I'm too young yet (50 in April), so we'll have to see if I get to keep working or if they give me time off for good behavior.

 

I listened to him for a few years until the radio station out here dropped him.

I’m sure it is good advice, but in my case there is no way I could have purchased my business or commercial building following his advice.

Couldn’t have bought my house back in 1995, which at that time was $292k. It was pretty hard to talk myself into getting that huge of a loan, considering in 1987 my house in Flower Mound, Tx was only $68k.

 

Try to learn from my mistakes!!

I worked in high tech from 85-05. I was making good money and investing as much as I could. I think it was around 99, the house up one street went for sale at about 310k. We paid 292k for ours, but by the time you do flooring, landscape, gutters, upgrades, window tint, shutter/blinds, etc. we had about 400k in our home.

I talked with my wife about buying that house up the street. She said do whatever you think is best, you have done great handling our money? At the time I was killing it in the stock market and as you can see by the numbers above, real estate wasn’t doing much yet.

So I continued gambling in stocks, and put every extra penny I earned into the stock market. I actually sold a million plus software deal, biggest in the companies history, and received a $165k commission check, more than I made in most years, off this one sale, and threw it all in the market.

When the market started crashing I stupidly dollar cost averaged down. Overall I lost about 1 million and haven’t ever made that back.

Only investing I’ve done since was 401k while still employed until 05 when I decided I wanted to be my own boss.

In 05 I sucked equity out of my house and got SBA loans to buy a business and after that a building. Luckily for us the value of our house went up enough I could risk it by pulling out equity for the down payment on the business. My 2nd chance!!!

If I had cashed out of the stock market in 99 and paid off my house and bought that other house, I would be sitting on over 2 million in free and clear real estate, but instead GREED led me to stay in stocks and stupidly lose my ass.

Everyone has a Masters Degree in hindsight, I know I paid a lot for mine.

Just 2 years ago I was able to start a Simple IRA for my employees and myself, so I’m sticking my toe back in and just buying index funds.

 

Solid post.

 

I see only one problem with all of that. The belief that you own real estate. Unless your local entity of tax collection has gone out of business. At the end of the day it's all imaginary.

 

If you had gotten in at the peak of the pre-2008 crash market, with SP500 Index funds, and stayed in with dividend reinvestment...you would have more than made your money back at 5.7% annualized returns (3.9% inflation adjusted) even after our current COVID crash as of 3/16. That 5.7% includes the entire great recession. Does not include cost averaging which would drive returns up.

Good plan you have now!

 

Own as in "currently have the right to sell someone else the opportunity to rent it from the taxing authorities"?

 

Well my taxes are 4500 a year, so yeah I feel like I own it. Just a few weeks ago we were out in Dallas visiting my daughter. The housing in Dallas has gone up so much in the last 5 years, the taxes out there are now very steep.

I know there isn’t a state income tax, but there isn’t one in Florida or Tennessee either, I don’t think and their property taxes are much lower and they don’t have oil revenue.

Property Taxes have pretty much doubled in Dallas in the past 3 years......so the politicians have excess revenue they don’t really need and instead of rebating it, I’m sure they will do like most politicians and spend like freaking crazy!!!

 

Been laying low all last week doing some research not buying anything waiting for when the bottom drops, futures for tomorrow opened up with a limit down for tomorrow. It just keeps going, as soon as Trump announced that they didn't reach an agreement on the stimulus, bam 1000 pts down and the market is closed for the opening. Looking for something short term, which I usually don't do, but looks like it will be a crazy up and down week.

As soon as they come to an agreement the market should shoot back, at least for a day or 2, and get rid of it. Does anyone have any good voilitale stocks between 5-10 dollars a share that were shooting up and down with the market last week?? Still holding on to make the main drops. I keep looking at the comments where 10-15 days ago everyone was saying how happy they were to buy cheap stocks dumping money in only to be seriously down now and probably getting worse. Was going to start trickling in long term investment money tomorrow but now not to sure, going to wait a bit longer??????

 

You are missing the point. Don't pay that $4500 in taxes and you'll find out just how solid you concept of ownership is...

 

People citing price per share as a factor in determining a "cheap" stock...

Me: Just give me your money, let me kick you in the balls and save you the trouble of trying to play with the stock market.

 

True, I think you can do that for 3 years out here before the tax man taketh away.