http://www.dailyreckoning.com.au/diversification/2007/03/07/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 http://www.dailyreckoning.com.au/diversification/2007/03/07/comment-page-1/#comment-1774 RR from Michigan Thu, 08 Mar 2007 21:37:15 +0000 http://www.dailyreckoning.com.au/diversification/2007/03/07/#comment-1774 The big lie: Retire off your mutual fund investments. I have asked many many people that are retired this question. "If you had to rely only on your investments for retirement income, could you make it?". The answer from all of them was NO WAY!. They rely on pensions. Many have blown up there investment accounts, but have a "get out of jail card" called a pension. Most people watch TV and believe what the experts say - over time the market will alway go up. Will they? What if there is a major crash? Is it really possible to save enough money on a normal income while raising a family to generate enough retirement income? I doubt it. The big lie: Retire off your mutual fund investments. I have asked many many people that are retired this question. "If you had to rely only on your investments for retirement income, could you make it?". The answer from all of them was NO WAY!. They rely on pensions. Many have blown up there investment accounts, but have a "get out of jail card" called a pension. Most people watch TV and believe what the experts say - over time the market will alway go up. Will they? What if there is a major crash? Is it really possible to save enough money on a normal income while raising a family to generate enough retirement income? I doubt it.

]]> http://www.dailyreckoning.com.au/diversification/2007/03/07/comment-page-1/#comment-1769 Grinder Wed, 07 Mar 2007 14:46:54 +0000 http://www.dailyreckoning.com.au/diversification/2007/03/07/#comment-1769 This investing is getting way too complicated. I think we need to go back to basics on investing. First of all, why do we even need to invest money in the first place ? Mainly to buy food, clothes, entertainment and pay the rent when we retire. So, investing is making sure that the extra money we put away today will allow us to buy those things in the future. OK, so here's a crazy idea. Rather than trying to invest the money in the stock market and hoping it won't disappear by the time we need it, why don't we just 'pre-purchase' those items now ? Let's look at entertainment as an example. Why doesn't Famous Players (or some big food movie chain) provide 'Entertainment Tickets' to the public THAT NEVER EXPIRE ? It would work like this...You buy a movie ticket with today's dollars that you put away in a safety deposit box which you could use when you retire. The same would work for Food Tickets or Rent Tickets. So, basically, we are buying 'real' things with our money. The companies providing the tickets get the benefit of our money getting into pockets now. This investing is getting way too complicated. I think we need to go back to basics on investing. First of all, why do we even need to invest money in the first place ? Mainly to buy food, clothes, entertainment and pay the rent when we retire. So, investing is making sure that the extra money we put away today will allow us to buy those things in the future. OK, so here's a crazy idea. Rather than trying to invest the money in the stock market and hoping it won't disappear by the time we need it, why don't we just 'pre-purchase' those items now ? Let's look at entertainment as an example. Why doesn't Famous Players (or some big food movie chain) provide 'Entertainment Tickets' to the public THAT NEVER EXPIRE ? It would work like this...You buy a movie ticket with today's dollars that you put away in a safety deposit box which you could use when you retire. The same would work for Food Tickets or Rent Tickets. So, basically, we are buying 'real' things with our money. The companies providing the tickets get the benefit of our money getting into pockets now.

]]> http://www.dailyreckoning.com.au/diversification/2007/03/07/comment-page-1/#comment-1768 eggsigino Wed, 07 Mar 2007 14:43:32 +0000 http://www.dailyreckoning.com.au/diversification/2007/03/07/#comment-1768 "Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing." - Warren Buffett.... and he should know "Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing." - Warren Buffett.... and he should know

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