Sept 15th, after watching the news on AIG all weekend we both woke up and knew that it was time to get out of the market. Thankfully we did. How grateful we are that we took our head out of the sand, got scared, and went to 'protect our assets'. It is a very scary time.
--Note: In our case we are living on our savings. If we were working with a long term outlook we probably would have stayed in the market (50% or so) and continued to dollar cost average. Building up more units of stock to leverage when the market grows again.
We are buying CD's in FDIC accounts.
My smart_as_a_whip dad, who is 82 and an investor since he sold a company when he was 45, is doing the same thing. He didn't tell us to get out but when I said we did he was clearly relieved. He thinks interest rates will go up next year and suggests a 6 month CD for now. He already has his in CDs @ 4%...I have gotten ours just over 3%.
I have been challenged to get the retirement money moved into accounts that allow purchase of CD's. Talk about paper work etc... Thankfully I am not working so that allows me time work the system. I am still not done after a week of efforts.
My heart goes out to so many. Hard times are here, more to come...lets hope we can dig deep, work together and find some silver linings. Maybe it's time to transition from a consumer driven society to one focused on our core values ... like family, community, add simplicity, energy efficiency etc. It's time to move past our difference and identify and grow our common values, like George!
How are you holding up?
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