Financial Planning


#101

Did you consider to buy a Bond ETF or Certificate?
Barclays iShares has quite a lot of those and even inflation protected TICP's (iShares $ TIPS).


#102

Apologies again - I though this thread had died (but am happy it hasn't)

I'll see what I can find out about buying T-bills there are a couple of possibles - not sure how responsive my guys are going to be this close to Xmas but we'll see.

Edit: individuals.interactivebrokers.c ... suries.htm
looks as though you can do this through interactive brokers?


#103

Sounds like an option.
Would take a deposit of 4000 to 10000 USD first to open an account, no?
But that could be put into T-Bills :laughing:


#104

Absolutely - I opened my account with 10K US$ and then put the lot into (cough) Citibank stock last December.....never said I get everything right!

If you have less than 10K investing directly in T-bills may not be the smartest move IMHO.


#105

If you knew what you were doing, one can do as good or better with 10yr note futures and/or options.


#106

EA: How's business? Will you be in TPE soon? Am interested to discuss more on this. PM me and let's set something up!


#107

I'll PM you.

Not sure when I will be in town, have a trip to Kaosiung planned later this month but Taipei seems to be eluding me at present.


#108

I don't know much about bonds, but can consumers take advantage of this? A 9 percent coupon seems too good to be true

reuters.com/article/idUSLDE66C0IP20100713

Unicredit's 500 million euro ($629.8 million) issue is set to have a coupon of around 9 percent, according to sources close to the deal.


#109

If it's too good to be true it usually is..risk premium and all that. I read that India has a high interest rate due to inflation...can you buy their bonds?


#110

As far as I can see this is pseudo capital backed by stock that could become junk - hence the high coupon.

This is likely to get bought in big blocks by people like Pension funds and Life Insurers who want to manage large sums of capital safely and put smaller blocks into high yielding high risk instruments like this

There are certainly safer investments that consistently return 9% plus but unfortunately not available to the man on the street in affordable blocks.


#111

Interesting little article in MotleyFool UK (for some reason that's the app that I got on my iPhone) yesterday.

fool.co.uk/news/investing/20 ... eroin.aspx

Interesting allocation. I've been keeping a larger share in cash than was historically recommended, due to fears in the last few years. But it's interesting that he goes a step further and puts money in gold, oil and agriculture. Hmmm. Maybe something to think about, though alcohol, tobacco and junk food are probably fairly safe bets too.


#112

Interesting view - especially as my house is sold and I am essentially sitting on cash!

What about a pooled annuity that pays a greater percentage as the pool shrinks through mortality? Or just a simple annuity linked to inflation?

The key with both is that it becomes about income not about total capital. If inflation kicks in your capital essentially erodes, but a growing income stream would allow you the opportunity to save again.

I think the catch is that we are all too young - typically these products get sold when you are in your 60s or older.


#113

Or you could invest in companies that are well run and that make great products or provide great services that people will probably always need or use. There have been financial crises before, but life has gone on for those who didn't lose their heads. The irony about this is that people didn't learn from history in the lead up to the crash, and now they haven't learnt from history since the crash. One minute, everyone's partying like it's 1999. The next, the world is going to end -- in 2012, and we're all going to be left in some Mad Max style post-apocalyptic scene being chased by leather clad motorcycle bandits. How about some level-headedness?


#114

Well, if the market was on heroin before, then it just scored another fix.

nytimes.com/2010/11/05/busin ... et.html?hp

Oops, I have to go fix breakfast, but here's a better article on the Fed's latest decision and what it means.
nytimes.com/2010/11/04/busin ... f=business


#115

There has been no discussion in this thread that the Chinese currency, the RenMinBi, is seriously undervalued.

The financial officials of the Obama administration frequently point this out, and also comment that it is the source of many of the world's problems . . . . . . .


#116

even heroin may not be enough
http://wallstreetexaminer.com/2010/11/20/why-bernankes-gambit-may-be-checkmated-professional-edition-expanded-preview/


#117

My understanding is that every time in history the Americans have forced another country to revalue their currency it has not had the intended positive effect on the US economy. Add to this the fact that most of China's exports to the US are actually sourced in China by American companies who are taking their profits in America and you'll soon realise that this is just a button for Obama to press and is not really a solution.


#118

No use looking at history for this. The Americans seems to have given up trying to push for RMB revaluation. Instead they are using QED to stimulate markets and bring down value of USD and cause inflation, thereby reducing their debt payments and making their exports competitive. They are not admitting it but you just have to see the result that can be acheived by this to know what is the aim.


#119

The best financial planning advice I ever had, I received in a high school Home economics class. A very smart teacher told me to pay yourself 10% first. I took it to heart. Thereafter, I took 10% of everything I earned and put it it savings before anyone else, other than the government got paid. Hell, I was only 17 but it started to add up. Then into a, then 8%, CD 10 year that I could add to. Doubles every 5 years or less. I kept doing it as the years progressed and the doubling rate dropped with the times. Regardless, I could count on my money doubling every 7 years.
Hell, forget all that fancy mumbo jumbo professional advice.
It worked well and still does.
It is far easier to listen and contemplate than to do.
Do it and you will be secure as long as the dollar is secure (which is a whole new and different issue)


#120

That doesn’t work anymore due to low interest rates.