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Retirement Fund Hell w Dante Quotes

retirement funds

In a deflation people are short of yield. As such they have managed to chase funds up to stratospheric levels to provide income without consideration for the risk of capital. Most retirement funds are “capital traps. If this was not bad enough most funds skim as part of a commissions engine. Much of the structure was built on perpetual growth with quality deteriorating. It would be better to pay off debt or invest in a productive asset. When we are investing rarely are we forming capital. 40-65 Year old people are trapped into a commission skimming engine. In deflation debt gets harder to pay back as well.

This entry was posted by admin on September 8, 2010 at 8:13 pm, and is filed under Investing. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

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#1 written by wepollock 1 year ago

Thank you for reading DANTE! “thus unto me my guide began to say, and beckoned him that he should come to shore…..

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#2 written by boprn 1 year ago

My problem with metals is that when it hits the fan, it will be hard to go down to the local grocery store and say ‘will you take this ounce of gold for some groceries’. If one can buy currency that can be converted back to U.S. dollars (and reap the benefit of the exchange rate going berserk), then you are still buying goods in U.S. dollars. The gold thing has a glitch in it as far as I’m concerned…unless one buys into an ETF that is linked to gold.

Thanks again!

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#3 written by wepollock 1 year ago

In these markets Its all bout Geryon the son of Medusa and we know her modus operandi.

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#4 written by wepollock 1 year ago

Once ounce of silver might buy the same as one ounce of gold in a grocery store. Take a Canadian dollar (or Euro) coin into a store and see if someone will take it. They might buy it as a novelty that is it. Its one of the questions I have re Dmitry Orlov’s book; what has value is different than things which measure value.

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#5 written by wepollock 1 year ago

A major flaw in survivalist planning is medicine. My pharmacist tells me that we have a one day supply of essential items in stores. Store all the food you want; its only useful if you supply your own; something most of us are not positioned to do.

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#6 written by SamuraiCommando 1 year ago

I agree another failure is books, and tools. DOnt just buy the meds you use, buy everything you might use. Dont just buy the ammo calibers you use buy the ones someone else might use as well. Especially if you got more than enough already for your own usage or you use a strange caliber.

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#7 written by SamuraiCommando 1 year ago

I think the PM behaviour is strange. I think there is going to be a pullback. Im thinking that markets will mimick last winter. I cannot justify the prices of oil when it isn’t being used. I swear the PMs chase the oil prices. I could be wrong. Oil valuation is flawed due to its deep affects on inflation. US investors put money into oil and then it costs more. So we shoot ourselves in the foot when we invest in it because it causes inflation when it increases value.

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#8 written by SamuraiCommando 1 year ago

My figurative language skills are feeble. But I enjoy the challenge it is good practice for Bible reads. Thanks for the Dante, I will read more.

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#9 written by iossysm 1 year ago

good stuff as always Warren
thanks

meanwhile you became the center of attention on the ” TheModernMystic ” board .. *S*

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#10 written by boprn 1 year ago

I would highly recommend watching that video response. That has to be one of the funniest things ever posted on YouTube.

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#11 written by Swifive 1 year ago

Thanks Warren. Good info.

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#12 written by fal2grace 1 year ago

btw, I was expecting a “seven levels of hell” reference:)

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#13 written by SamuraiCommando 1 year ago

Its funny how I tried to get my better half to liquidate her 401k but now her company switched the fund to Wells Fargo and so the funds are frozen till Oct 12th. Irony?

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#14 written by WHEREtheFUNK 1 year ago

what is the turnover and what is the expense that is the annual fee. Is it an etf or a closed end fund?
Churn = turnover

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#15 written by WHEREtheFUNK 1 year ago

if you want yeild look at HYG. It is an etf and is yielding 11% right now and pays monthly income. HYG is a high yield bond etf. The management fee is 0.5% where Alpine Dynamic is 1.17%.

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#16 written by wepollock 1 year ago

Lots of Caa1, C, B1, B2 BB- bonds in that portfolio.

MGM Mirage
Hertz – About bankrupt
Goodyear – Broke
XM Satellite

They are providing yield for a reason.. RISK.

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#17 written by bozeman14 1 year ago

i had mentioned this trap for 45-65 year olds and was threatend with all kinds of myhem.

i do not remember having anything to do with this crony capitalism system. idid not vote for bush or clinton or bush.

i had nothing to do with these insane investment formulas – that didn’t factor in an asset devaluation.

who are these idiots – if they worked for microsoft they would have been long gone sans bonuses

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#18 written by WHEREtheFUNK 1 year ago

Regarding HYG I hear you. I have a stop loss at 82.50. we bought it at 78.00. Right now long ANYTHING other then TIP, GLD or shorting DIA represents heavy risk. I have my stops in play and am sitting in cash with the rest of it. Thanks for your input and for producing your channel.

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#19 written by Ineedtoshortenmyname 1 year ago

“Bonds can be just as dangerous as stocks”

Hold the phone. Can you clearify what you mean by that? I’m in the final stages of moving our savings into AA+ Bond funds. I was under the assumption that high quality bond funds are “safe” return investments.

How exactly does raising interest rates affect bond funds in a negative way, you would still get x% right?

Bond fund Symbol: TMBIX and Beutel Goodman Income is 2 where we looking at.

Thank you for your comments and opinions.

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#20 written by wepollock 1 year ago

The average life of the bonds in that fund is 13 Years. Were interest rates to rise the trading price each bond in the fund would fall so the fund will pay out yield at the same level as the market.
Municipal bonds are supposed to be the last bastion of savings. Ask a question: Are these municipalities broke or solvent?

Also because the fund spreads out over many states its not tax efficient.

Anyway; Bond price and yields are inverse. That is why that fund had some negative years.

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#21 written by wepollock 1 year ago

Bonds in Inflation – price will be adversely effected
Bonds in deflation – you would want to lock in term and high quality as interest rates would stay low or go down;; increased risk of default as money becomes impossible to pay back.

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#22 written by Ineedtoshortenmyname 1 year ago

If bonds are not the best option (I should say we would be in them short term (less than 2 years), what do you suggest for safety of capital with a better return than a bank account?

Thank you so much for your comments and opinions, I value them and your videos very much!

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#23 written by wepollock 1 year ago

There is not anything best; or better. This is not a time for yield.

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#24 written by wepollock 1 year ago

We have to watch here to see which way and if it breaks. We are in an instability.

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#25 written by Ineedtoshortenmyname 1 year ago

Thank you for your honest advice, it is one of the main reasons I regularly watch and share your videos.

What are the smart people doing with their money then in your opinion? Are they diversifing it in bank accounts keeping it in cash ready to react when the instability lifts?

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