Comments on: Invest As Much As You Can Now, So You Will Have Options Later

By: Smart Money

Smart Money — Fri, 16 Oct 2009 01:56:22 +0000

I’ve been reinvesting all my dividends into buying additional stocks and also injected a lump sum into my superanuation retirement account during that period, which in hindsight was a great move that I made.

Humans are greedy and fearful, at the same time. This ensures that cycles of boom and bust will occur in perpetuity.

Ryan, with 30 years to go, sit back and relax in terms of your portfolio value fluctuating. I’ve got over 3o years to go before I’ll be in my sixties as well, so I never once panicked or worried over my fluctuating investment values. Just kept on enjoying life as if nothing had happened. (I must confess though, that I did liquidate 50% of my share portfolio in 2007 after the Bear Stearns incidence and the trickle of bad news from the US … so maybe that’s why I didn’t worry too much!)

Asset allocation and diversification are one of the most important aspects of finance to understand. A lot of retirees and almost retired have lost out big time in this credit crisis because of poor asset allocation.

By: Ryan

Ryan — Wed, 12 Nov 2008 12:03:48 +0000

Cash is King, I didn’t move all my equities into cash equivalents, but I did open a CD ladder last year, which should help smooth my returns. Thanks for the comment.

By: Cash is king

Cash is king — Wed, 12 Nov 2008 04:22:04 +0000

I agree that the stock market can eventually recover but in the short-term, the direction is still downwards. If you want to stay safe, money markets would be the place to park your money in spite of its piddling 3-4% interest (4 is more for 1-year CDs).

I got weird vibes in the stock market back in early 2007 and I did precisely that – parked my money in CDs and money market accounts. Very glad that I did. The time will come when that savings goes back into the stock market but you gotta have faith first. I don’t have that in the short-term.

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By: Ryan

Ryan — Tue, 04 Nov 2008 01:59:55 +0000

Donny: I think you may be right. I've got my 401(k) plan maxed. I'm hoping stocks stay low into the new year so I can do a lump sum for my Roth IRA and take advantage of these lower stock prices. Moyo: No idea what the next bubble will be. I plan on maintaining a strong asset allocation, which will hopefully be able to weather it well. Steward: You may be right, but I'm no whiz when it comes to picking individual stocks. I think it will stay bad for awhile, but that means a longer buying opportunity if you are in it for the long haul (like I am).

By: Steward

Steward — Mon, 03 Nov 2008 21:56:00 +0000

I think that picking the right stocks now is a good idea, but broad-based index investing could be a little premature if things continue to decline, which I think they might. I could be totally wrong and things could rebound rather quickly, I just have a feeling like things will stay bad for a little while.

By: Moyo

Moyo — Mon, 03 Nov 2008 21:33:22 +0000

I guess the key thing is let’s hope the big shots don’t make the stupid mistakes they made…given the fed’s reaction to the current turmoil, we can’t be too sure it wont happen again soon.

Really the big question is where is the next bubble going to be? we’ve seen dot com, housing which also triggered the financial sector burst, what’s next?