Comments on: Money Magazine – March 2007 http://www.thesimpledollar.com/2007/02/19/money-magazine-march-2007/ Simple, applicable personal finance advice for the modern world Sat, 20 Mar 2010 03:41:16 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Ken thornton http://www.thesimpledollar.com/2007/02/19/money-magazine-march-2007/comment-page-1/#comment-49353 Ken thornton Mon, 23 Jul 2007 17:32:45 +0000 http://www.thesimpledollar.com/2007/02/19/money-magazine-march-2007/#comment-49353 Correction!!!! I meant to say Make sure investments are not closely tied to the $US. Sorry, ken Correction!!!! I meant to say Make sure investments are not closely tied to the $US.

Sorry, ken

]]> By: Ken thornton http://www.thesimpledollar.com/2007/02/19/money-magazine-march-2007/comment-page-1/#comment-49352 Ken thornton Mon, 23 Jul 2007 17:29:50 +0000 http://www.thesimpledollar.com/2007/02/19/money-magazine-march-2007/#comment-49352 Your instructor is exactly right!!!! The standard of living that americans have bcome accustomed to is in danger of extinction and soon. I'm 50 plus and working hard on a strategy to help soft the coming crisis. Invest over seas but be carefull that you foreign investments are closely tied to the $ US. Do your homework in this matter. READ READ READ! Ken Your instructor is exactly right!!!! The standard
of living that americans have bcome accustomed to
is in danger of extinction and soon. I’m 50 plus
and working hard on a strategy to help soft the
coming crisis. Invest over seas but be carefull
that you foreign investments are closely tied to
the $ US. Do your homework in this matter. READ
READ READ! Ken

]]> By: cciesquare http://www.thesimpledollar.com/2007/02/19/money-magazine-march-2007/comment-page-1/#comment-6829 cciesquare Mon, 19 Feb 2007 21:16:01 +0000 http://www.thesimpledollar.com/2007/02/19/money-magazine-march-2007/#comment-6829 Interesting I am currently taking an economics class and the teacher who looks to be about 50+ was talking about retirment in the coming years. He said that the US is running up a huge trade defeciet with places like China and Europe. The dollar is losing value agaisnt other currencies like falling flies. He perdicts that the US will not be able to continue with such high defeciet and it will lead to a market collapse at its going rate. His point was that he has no retirement funds invested in ANY US entities. Everything that is set aside for retirement is overseas. His caution to students was that if you have retirement money invested in stocks/bonds/mutal funds, without a diversification which includes a good percentage, about 25%, in foreign investments you're setting youself up for a possible market collapse and losing most of your retirement. He gives two sceanrios that can happen. 1) China is not happy with the US and decides it no longer wants to hold on to the ~$1 Trillion worth of bonds. China threatens to sell most or all. This is possible if China switches to investing in Europe, or the standard is no longer the US $1 but the Euro. 2) Again the Oil companies overseas realize that with the falling dollar the US is no longer a good investment. They are losing money and decide to switch to the Euro. These oil companies sell all their US shares or investments and switch to European market. Saudi Arabia has a very large investment in the US market, if they were to even pull s small portion of their investments it would be felt in all corners. His other caution about retirement and the coming years is this. The current generation which we call generation "debt" is going to hurt the baby boomers. When the baby boomers go to sell their stocks/funds/investments for cash to spend, they will meet mostly a generation debt which has no money to invest which will cause a huge problem. If the baby boomers panic and a large percentage of them sell when the market doesnt want to buy its going to cause chaos. Again he repeatedly cautions that you should be switching to investments overseas as you are closer to retirement, speaking to our age group the 18-22. Not sure if my teacher was just blowing it out of proportions but it seems very real. Interesting I am currently taking an economics class and the teacher who looks to be about 50+ was talking about retirment in the coming years.

He said that the US is running up a huge trade defeciet with places like China and Europe. The dollar is losing value agaisnt other currencies like falling flies. He perdicts that the US will not be able to continue with such high defeciet and it will lead to a market collapse at its going rate.

His point was that he has no retirement funds invested in ANY US entities. Everything that is set aside for retirement is overseas.

His caution to students was that if you have retirement money invested in stocks/bonds/mutal funds, without a diversification which includes a good percentage, about 25%, in foreign investments you’re setting youself up for a possible market collapse and losing most of your retirement.

He gives two sceanrios that can happen.

1) China is not happy with the US and decides it no longer wants to hold on to the ~$1 Trillion worth of bonds. China threatens to sell most or all. This is possible if China switches to investing in Europe, or the standard is no longer the US $1 but the Euro.

2) Again the Oil companies overseas realize that with the falling dollar the US is no longer a good investment. They are losing money and decide to switch to the Euro. These oil companies sell all their US shares or investments and switch to European market. Saudi Arabia has a very large investment in the US market, if they were to even pull s small portion of their investments it would be felt in all corners.

His other caution about retirement and the coming years is this. The current generation which we call generation “debt” is going to hurt the baby boomers. When the baby boomers go to sell their stocks/funds/investments for cash to spend, they will meet mostly a generation debt which has no money to invest which will cause a huge problem.

If the baby boomers panic and a large percentage of them sell when the market doesnt want to buy its going to cause chaos.

Again he repeatedly cautions that you should be switching to investments overseas as you are closer to retirement, speaking to our age group the 18-22.

Not sure if my teacher was just blowing it out of proportions but it seems very real.

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