Sad Day in New Bern and All Hatteras Owners

[nyrussell]

who said more than the match. on the other hand it is tax free investing (so far). And over 40-60 years it does pay off. Like any other long term investment.

Noel

 

[Dave Phipps]

The real answer is not in new taxes or increased taxes on individuals or corporations. The real answer is reigning in government spending, and dealing with the impending social and financial crisis that Social Security and Medicare are imposing on all of us. There are solutions, even palatable ones, but our political system is broken and corrupt....

The rest of the financial world sees the impending implosion looming, and the dollar is taking the hit as our government fails to address the crisis. With our population growing, and the demographics of that growth being what they are, be prepared for the "I'm entitled to government help" era....at your expense.

Genesis is right...this country is on the way to bankruptcy absent any real leadership.

 

[Passages]

Krush - I like you buddy, but it appears you spent too much time in the engineering lab and shrugged off the personal finance 101 elective.

You need to get into 401k now even though retirement seems along way off. Since you are just starting out, maybe the deferred tax status does not help that much. However the future is uncertain and 401k is one of the few havens to hold investments safe from bankrupcy, liens and attachments.

Also, now is the time to plant the nest egg. You have 40 years of growth on your side. Don't piss that opportunity away in favor of that new car to impress your friends. Better to put 5000 a year into 401k for the next 10 years and STOP, than to wait 10 years and then contribute 5000 per year, every year until you retire.

Einstien was once asked what he considered mans greatest invention - he answered "Compound interest".

 

[thoward]

The real answer is not in new taxes or increased taxes on individuals or corporations. The real answer is reigning in government spending, and dealing with the impending social and financial crisis that Social Security and Medicare are imposing on all of us. There are solutions, even palatable ones, but our political system is broken and corrupt....

The rest of the financial world sees the impending implosion looming, and the dollar is taking the hit as our government fails to address the crisis. With our population growing, and the demographics of that growth being what they are, be prepared for the "I'm entitled to government help" era....at your expense.

Genesis is right...this country is on the way to bankruptcy absent any real leadership.

We just had a local yokal council member state on record "the city should raise taxes so we do not have to let any staff go". I about chit myself. The area we are in has 2 big industries, construction and government.

The Social Security issue is being passed like a hot potato. Bottom line is it will not be here 15 years from now. I think The loss of SS could be a blessing, It could force families back together and reduce the drain on other social programs like child care.

 

[krush]

Krush - I like you buddy, but it appears you spent too much time in the engineering lab and shrugged off the personal finance 101 elective.

You need to get into 401k now even though retirement seems along way off..

Ahh yes, now is a GREAT time to get into 401k heavy....when the best one is doing .01% return and the others are at least -10% YTD (and actually two year negative) with most being -15 to -25%. It's PERFECT!

Edit: Oh yeah, I can't touch it till I'm uber old....not very appealing. It's a system invented to give the pigmen on wallstreet an easy way to pass the bag.

 

[oldboat]

if you pay attention and carefully pick your investments a 401k is still making money. mine had a 4.79% return the last quarter. not the great returns of the last few years but is still good. if the company wants to give me extra money every month, i will take it.

 

[nyrussell]

amn Krush, sounds like you want to be poor! I never had the benefit of a pension plan, 401k or anything else. So stop complaining and sock to the max. It adds up and if you put the money elsewhere the returns can be a lot less.

Also, unless you are a financial wizard and can spend all day looking at a chart (IE... day trader and they do get burned often) the 401K is a good lan. it was better years ago, but still a good deal. Now ask yourself who you would like to borrow from for a down on a house, the bank or against your own money... Just one of the benefits of the 401K. But the biggest benefit is TIME. listen to us "geezers" for once will ya. Also, if you pt 10% away on top of that.... Even in a regular savings account... It adds up after 10 years, the first ten are always ugly but then....

Sheesh, give a guy some common sense advice..

LOL

Noel

 

[krush]

I'm still missing the part where investing in something that is currently consistently LOSING value is wise. Guess I'm a young dum full [sic] BUAHHA

 

[Boatsb]

Krush the 401K can be put into CD's or other interest bearing funds that will not make big buck but wont lose. Also the tax advantage and the fact that the money has so long to grow will be huge.

 

[Jaxfishgyd]

Since ATT matches my money, dollar for dollar (to a certain percent) seems I make a 100% profit the second the money hits my 401. Up until a few years ago, all the money had to go into the company's stock.
Now we have options and can invest it where we want.
After over 30 yrs of putting money into it, and now 2 yrs till I can touch it, am glad I have.
And I started out just putting $10 a payday into it in the beginning.

 

[MikeP]

When I was krush's age, I wouldn't have listened to any of us! Why should he?

 

[MagnaBill]

My first post. I love this whole forum - seem like nice people and we all love BOATS!

I'm a sharebroker here in Adelaide Australia. I have some seasoned campaigners around me that have been in the industry for 40 years (yes they're in their late 60's). They (and I) have never seen it this bad. We think we have worse to come both globally and locally. Riviera have laid off over 320 staff / contractors in the last 6 months and I suspect more will go. Boats new and secondhand are VERY hard to shift. When will it get better - crystal ball says perhaps end '09. We'll all be ok - just some day we won't feel like that.

I have a 60 foot Randell (Magna) with 6V92's and it would not have Racor CCV's if it were not for this forum. Soon as its sold its a 65 LRC for us.

Regards, Bill

 

[sgharford]

Hi Krush – how old are you? I swear you have the boat knowledge of a 60 year veteran charter boat captain. Really respect your additions to post and other commentary. As I am also one of the younger members, all I can do is offer some experiences of my own regarding 401k. I have been putting some money ($3k to $8k year) into 401k since I got out of school in 95. For the past two years I have been maxing out at $15,500 per year (my company does not match anything, only 35 employees with 4 who participate – me and my brother being two of them). For the past 3 years, my returns have been better then my yearly contributions (Thank You T Rowe Price Latin American fund!). For most part, It’s self perpetuating now (like Passages was saying – do it now!). You obviously understand the math. I now have two kids and am suppose to put away $650 a month EACH just to be able to pay their college tuition in 18 years! Well, that much ain’t happening (right now anyway) – but I sure am glad I have what I do in 401k as I may need to scale back my 401k contributions with wife and kids in picture now. Remember the old motto “buy low – sell high” – it sure is cheap right now. I’m no financial wizard by any means, but looking at it simply – If I retire in 30 years with 3.5% rate of inflation, every dollar in the bank today is only worth 1/3 ( $0.35) of what it will be in 30 years. What seems like a fortune today, after 10 years of savings, is really only 1 year of living expenses when I am 65 (yikes!).

 

[Passages]

So young grasshopper...(That's you Krush) Are you right and all us geezers wrong on this?

we realize just starting out, you have what's seems like a mountain of debt (student loans?), everything to buy (furniture?) and an entry level engineering position (which ain't bad BTW). But if there is anything you take away from this thread, it's the wisdom of building savings early.

As stated above, you don't have to invest in equities (Suggest you don't) Most 401k's have a conservative money market or bond fund. Wait for what seems like to bottom (later 2009?) then, if fundementals appear stonger, then move back into stocks.

Until Sept 2007, I was 90% in equities. I then moved most of that to treasuries and bond funds. When this storm passes, I plan to move back to equities. Even with the stock market performing sub-par (ok, it sux) my returns remain in positive territory.

I'd like to see Genesis weigh in on this.

 

[nyrussell]

Oh Krush,

I too have my Brokers License and would tell you to look at the bigger picture. Now as for how we know about some of this... Wife makes max contribution first ten years, used the funds to purchase house etc... Wish I had this advice 20 years ago too.

Look at the market over the last 100 years, not the now and you will understand what we are saying. Oh, personally i like T bills, not a great return, but the securest investment out their. Unless Uncle Sam renegs...

Noel

 

[labrador]

Krush, your young and should be maxing out all you can right now. By averegeing in right now when stocks are cheap you will have a head start on everyone who runs from the mkt now. When it turns, you will reap the benifits. Who cares what the mkt is doing now! Put it in and eventually it will turn in your favor. You arn't going to touch it for 30 to 40 yrs anyway. Wish it was around when I was your age!!!!

 

[sgharford]

Sorry, but forgot to mention this too regarding 401k - No capital gains tax! I have had allot fun bouncing around funds the past two years with my 401k. I save old profiles and see how I could of done had I left things alone. I just wouldn't do this with personal savings due to capital gains. And if you make a bad call on your 401k, atleast you have 30-40 years to make up for it.

 

[krush]

This thread is rich! I'm 24, and make good money, have no debt, and live/eat for free (per diem is pretty sweet, eh?).

I don't drink the koolaid, sorry. The problem with 401k's is that most do not allow self direction. I'm not a day trader by any means, but one doesn't have to be one to know what the term "trying to catch a falling knife" means.

Wanna hear Gen's opinion? I can't speak for him, but I know he'll agree that 0% return is better than any loss. All you old farts better be careful because there are many fat 401k accounts out there that are shrinking by the second...your's may be one of them.

Right now I think I'll stick to digging a hole in the ground and treasury direct.

Edit: and the "you got 30 years to make up for the loss" is stupid talk. How bout we avoid the loss in the first place?

 

[dr.b]

It is a sad day for Hatteras and for boating. In Southern California boating is still brisk but new boat sales are in the toilet. I am told things are much worse on the east coast and that boaters are staying home and are not out on the water. The newest edition of Yachting Magazine had an article on conserving fuel but in general the boating world seems silent beyond belief about the economic downturn and the price of fuel, their impact on boaters and what boaters can do to stay on the water. Let's have a discussion about what boaters can do to conserve fuel, buy at the best prices, and keep boating. Dr.B

 

[labrador]

Go ahead Krush, put your head in the sand and bury your money with it. By the way you'll be paying taxes on that buried money losing value that way also and as a single guy making good money without any deductions you WILL be paying a hefty tax rate!!!!