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Morgan

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#15 : October 11, 2008, 07:16:49 PM

Not to mention the retirement factor.  A couple in a $600k family home can eventually downgrade to a $300k home when they retire.

Without home equity and the consumer confidence it brings the very premise of the economy of the last decade is in shreds.

Not a wise assumption that your home will maintain value, is it?  Or maybe it has been an assumption until now. And to spend today based on future sale price of a home sounds like a very bad financial planning. I guess every homeowner will learn.

Morgan

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#16 : October 11, 2008, 07:30:10 PM

Very pleased to see the level of financial savvy here.  I guess there is hope.

I personally do favor well managed funds...

"Well managed" of course, but most managers don't beat the market. Index funds cost less, but when the market falls, index funds sink as well. Actively managed funds often have more taxes (due to more trades/taxable events) too, if I'm not mistaken.

Ladyfan

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#17 : October 11, 2008, 07:46:28 PM

True about the taxes/  However, majority of these funds are held in tax deferred accounts like IRAs and 401K, variable annuities etc.  However, if you have the funds in a taxable account, then don't you like the idea of taking the capital gains so you don't have to reach into your pocket to find the taxes due money?

I really don't buy into the "less cost" emphasis put on funds.  Please note I say emphasis.  In my own research, I find that I don't care so much about the costs of the funds if they are doing better than the lower cost funds.  What a lot of folks don't realize is that all figures are quoted in "net" terms( called total return) with costs taken out so that if you are looking at xyz fund and comparing it to abc fund, you can compare apples to apples.

From that perspective, I look at best over 10 year returns in a specific asset allocation ( value or growth, overseas, small cap etc.) with a low beta.


mjs020294

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#18 : October 11, 2008, 08:19:58 PM

Not a wise assumption that your home will maintain value, is it?  Or maybe it has been an assumption until now.

Home prices have kicked the pants of stocks in many economies around the world. 

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Pewter Report  >>  Boards  >>  Pirate's Cove (Moderators: 3rd String Kicker, PRPatrol)  >>  Topic: Lasting Effects of this Devastating Financial Crisis « previous next »
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