Please keep your blog entries and emails pouring in. We've gotten great responses via email (nbrmail@nbr.com) and the first blog entry I wrote.
Most of the responses that we've received can basically be put in to 3 groups.
The first group is "Riding Out the Storm" by pinching pennies, driving less and cutting back on extras. The people comprising this group are looking to pay down their debt or eliminate it all together. For the most part, they are no longer concerned with keeping up with the Joneses. These folks are trying to keep their homes and their jobs while sending their kids to college.
Another group is made up of mostly older people with money in the bank. They have a lot of assets but do not work or won't work for much longer. These folks are anxious for the economy to turn around so they can stop worrying about losing their principle. One thing many people in this group say in their entries or emails is "been there, done that." They know this crisis will eventually end and they have prepared for it.
The third group is fed up and angry. They're frustrated at politicians and Wall Street executives who took bonuses, incentives and lucrative severance packages while their customers were losing money. They disagree with the government's decision to rescue or bail out banks or other businesses.
Which group (s) do you belong to?
For more information about this feature and to review how personal finance experts have responded to what you are saying, check out our "Riding Out the Storm" series home.
Comments
One form of investment for income during retirement that seems to be completely ignored by any commentator or advisor in th4e media is preferred stocks. I am a retiree who supplements his pension wih investment income, and have had an assortment of preferred stocks for many years. The usual arrangement is that you get them at $25 per share at initial issue, and pay no commission if your broker's firm issues them. Then you get some reasonable percentage level of interest, say from 6% to 9%, based on that initial investment. During the years that you hold them, their resale value varies, and in bad times like these can drop quite a bit, but if you hold them until they are called by the issuer, you get your full amount of investment back. Just don't sell them when the sale price is low. BUT, in times like now when the prices are low, it is a great buying opportunity. You can buy a face-value $25 stock for $12, say, and if it paid 9%, you'd get 18% as a return! Why not encourage this?
It's all about reducing expenses and preserving capital...things i've been doing for years...didn't need an economic slowdown to drive me to changing behavior.
Food - buying store brands, on sale items, looking for money off coupons on meats approaching expiration date (then freezing) buying in bulk, thrift stores for bread, etc. I am feeding a family of one adult and two kids for about $50.00/week.
Clothing - haven't bought clothing in a retail store for ten years. All clothing purchased in consignment stores especially for the kids.
One area where I have changed behavior is with car driving...consolidating trips to town to minimize miles driven - short trips have used bicycle during the warmer months.
With all of these financial bombs going on around us, what's a person to do? Luckily, I paid off my house two years ago and still have a job. In this environment, I'm not getting ahead, only falling behind slower.
With all of these financial bombs going on around us, what's a person to do? Luckily, I paid off my house two years ago and still have a job. In this environment, I'm not getting ahead, only falling behind slower.
I've had a long term care insurance contract with Genworth (formerly GE)for 10 years. What happens if Genworth (GNW) goes "kaput"? I'm surprised I can't find any discussion of this on the web or in Google Groups.
Keynesian Revisited
Although John Maynard demonstrated that what may be good for the individual could easily devastate a nation, I would like to take issue with the kind of simplification of his premise which could be equally devastating to our nation. We understand that W Buffet can save billions for his personal fortune by simply driving used Volks Wagen few thousand miles during his early life. But we also need Mac to buy the Fleetwood. Granted!
In today's opulent affluence we got too many Mac, but not enough W. What the world needs now is not another trip to casino strip. But if everyone holding a position will go to her/his job today, concentrate on the work at hand, put in extra hour, then go early again each morning thus our economy's clutch will stop slipping. If you don't have job then do something for someone who does. Send check to your granddaughter at college! Mow your neighbor's grass. Smile at the lost doggy.
Or, , , , you can vote for a savior then forget the whole problem whilst your new savior takes care of the grubby details.
Naaaaaaaaaah
!