Economic downturn: Silver lining?

[Drachen]

Ok I just came up with this, so it is not a fully developed thought, but that is why I wanted to put it up for discussion.
Is this economic downturn the key to our social security dilemma?
I am 28, and don't really expect SS to be viable when I retire so it is up to me to provide for my retirement. I feel that this downturn is a once in a lifetime chance to begin investing in my future for very cheap. If people start doing this now, then by the time SS goes under I should have amassed far more wealth than I would have otherwise, likely enough to offset the SS that I won't be receiving. I don't make a ton of money and it is only very little that I can put towards my retirement, but that would have been the same if the market was running like gangbusters or not. My point is that I have far more purchasing power (when it comes to stock prices) now than I would have otherwise. I have long enough that I can allow the market to rebound and reach new heights before I must draw off of it. This can be the same for millions of people such as myself. For those nearing retirment I know it sucks, and I dont know what to say other than, at least SS is still viable. I am not trying to be cold, but I dont know what else to say there. Please comment.

[SnakeBoy]

I think it's a great buying opportunity if you know what to buy. The economic turmoil is far from over so that becomes the big question: What to buy?

[clambake]

the risk is 100%, but you're still young. make sure to stay more liquid than paper.

it's going to get worse.

[2centsworth]

In the words of Warren Buffet "buy when there's blood on the streets". You're young and if you can invest on a monthly basis for the next 30 years, you'll be happy you did.

As far as social security, those 50 and older should be required to stay and we should pay as promised, and those younger than 50 should be given the option to at least privatize 50%. We can privatize using a plan similar to the governments 457 where they control the investments options A-G, with A being conservative and G being Aggressive. In addition, you can also get a few insurance companies involved who will guarantee income on the privatized portion of the investments.

now I got all of this information out of a comic book, so if you listen to me you're dumber than you look.

[Anti.Hero]

Times like this are always great for investing. In the upcoming years, if you have great credit you will be able to clean up.

Assets are still overvalued so it's just a matter of picking the right time to dive in.


If you stay out of debt and save up capital, these are the times when people make their fortunes that will last them to the grave.

[clambake]

now I got all of this information out of a comic book, so if you listen to me you're dumber than you look.

:lol good one.

[boutons_]

Because not even Wall St knows where the extremely, insanely volatile stock market is going, it's a BAD TIME to go to the stock market casino, contrary to what Buffet says. The fatal uncertainty is whether the stock market, or any particular stock, is at its bottom or not.

Buffet spent $5B on Goldman, knowing Goldman was gonna get bailed out and protected by Paulsen. Hardly an example anybody else can follow.

[2centsworth]

:lol good one.

i actually believe it, but please don't do anything I say. please consult your own people.

[Drachen]

Because not even Wall St knows where the extremely, insanely volatile stock market is going, it's a BAD TIME to go to the stock market casino, contrary to what Buffet says. The fatal uncertainty is whether the stock market, or any particular stock, is at its bottom or not.

Buffet spent $5B on Goldman, knowing Goldman was gonna get bailed out and protected by Paulsen. Hardly an example anybody else can follow.

I dont agree, if I am boring and invest in Blue Chips only (specific blue chips that is) then I am doing the same thing, albeit with less information. GE is a prime example, we already know the government has adopted the mantra of "too big to fail." Can you think of a more perfect example? I am not just talking about throwing my money into random company X. I am talking about specifically targeting investment. They are managed well, they make products that are in demand, despite this downturn, they are diversified, and they are positioned to profit from the next "bubble." This is just one example, but a compelling one. As far as if the market is going to go lower, that's debateable. Even if it does, that further helps those who have no chance of getting SS. I don't need to wait it out to try to pick a bottom, it is already far lower than I could have imagined. It is almost as if I am getting a second chance to invest in my retirement at 18. Perhaps this should be pointed out on a national level in response to the problems plaguing SS.

(that is unless I am wrong, like I said, I haven't sat down and fully developed the idea)

[Drachen]

Also, in further response to boutons, the only difference it would make if the market gets worse is if I were looking for short term investing. The whole idea to investing is not to let the market dictate your goals, but to figure out your goals, then look at the market and figure out how to achieve them.

[2centsworth]

Because not even Wall St knows where the extremely, insanely volatile stock market is going, it's a BAD TIME to go to the stock market casino, contrary to what Buffet says. The fatal uncertainty is whether the stock market, or any particular stock, is at its bottom or not.

Buffet spent $5B on Goldman, knowing Goldman was gonna get bailed out and protected by Paulsen. Hardly an example anybody else can follow.

no one can guess the absolute bottom of the market, but we do know it's at historical lows trading at about a P/E of 11. Even a 30% reduction in profitability has the P/E at 15 which still keeps it below it's historical average of 18.

anyways buying near the low is better than waiting and buying near the high which most people do, but do you want to be like most people?

again, consult your own people.

[Centaur of the Sun]

I'd like for the age at which Social Security kicks in to be adjusted to modern life expectancies. Not retro-active for maybe another 15 years or so as to not totally fucking those who are close to being qualified.

If people started routinely living to be past 100 due to medical advances, it would be impossible to maintain. Shit, it's impossible to maintain now.

[Drachen]

Oh, and I realize this may look like I am an idiot that just had an "ah-ha" moment about the virtues of long-term investment, this is not true. My ah-ha came from linking the downturn to a way of resolving SS problems.

[Drachen]

I'd like for the age at which Social Security kicks in to be adjusted to modern life expectancies. Not retro-active for maybe another 15 years or so as to not totally fucking those who are close to being qualified.

If people started routinely living to be past 100 due to medical advances, it would be impossible to maintain. Shit, it's impossible to maintain now.

This makes sense too. It could be a law that basically says that each 5 years or so it is compared to the XX% of the average life expectancy, to go into effect 5 years later.

[Anti.Hero]

The only way to solve your future SS problems is to make enough money to not rely on it once you get old.

[Drachen]

The only way to solve your future SS problems is to make enough money to not rely on it once you get old.


Which is essentially the whole point of this thread.

[Tully365]

Which is essentially the whole point of this thread.

Does your job match your 401k contributions? If so, it's hard to argue against using this relatively simple investment tool, especially if they match 100%.
But I do think things will get worse before they get better, which is why I'm tentatively hoping to buy an investment property on the cheap next year.

[Tully365]

I actually think that the economic downturn can have a lot of silver linings. One is a simple reminder that greed, gluttony, and excess are not noble qualities.

Also, it seems to me that the music world tends to produce greater stuff during tough times-- something I'm really looking forward to!

[TheMadHatter]

I just pushed my 401k contributions to 20% of my paycheck. I'm buying up company stock in our ESPP at the highest rate of 10%.

When the market bounces back, I'm gonna score big time.

[Anti.Hero]

Look at the dems licking their chops to all your 401k are belong to us.

[Drachen]

Look at the dems licking their chops to all your 401k are belong to us.

huh?

[Drachen]

I just pushed my 401k contributions to 20% of my paycheck. I'm buying up company stock in our ESPP at the highest rate of 10%.

When the market bounces back, I'm gonna score big time.

I wish! I would only be making 990 twice a month before benefits and taxes!