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Interest rates rising, bonds dropping, where to put money?

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T Roosevelt Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 02:49 PM
Original message
Interest rates rising, bonds dropping, where to put money?
Looking for a little stability in a rising interest rate environment...
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Worst Username Ever Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 02:53 PM
Response to Original message
1. I don't know where you keep the rest of your money
Edited on Tue Jul-13-04 02:54 PM by shylock1579
the NAV of a bond will certainly fall, but what you have to ask yourself is if you are interested in interest payments or capital preservation. Bonds will still continue to pay interest, and you can always add money into your bond fun to take advantage of lower costs, just like you would with a mutual fund. That way, as prices rise, you are getting a better price on shares, so when rates drop again (eventaully), these new shares will rise in value

What is the purpose of this money? Does it need to stay liquid? Is it for retirement? If so, how long till retirement? Does it have to be a stable-type of investment, or can it be in stocks?

on-edit: "all information provided is for informational purposes only."

Lawyers!
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havocmom Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 02:55 PM
Response to Original message
2. Ammunition? (n/t)
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olddem43 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 03:00 PM
Response to Original message
3. Don;t forget to look at the option of paying off debt -
often, it's a lot better to pay off high interest debt instead of settling for a low yield on investments.
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Worst Username Ever Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 03:04 PM
Response to Reply #3
4. Very good
Yep, that is priority #1, however I assumed that if they have extra cash for investments, they probably have 0 or minimum debt. I should probably not make that assumption, expecially since a bond yield is typically under 5%, and credit cards will charge you way, way over that.
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leftyandproud Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 03:44 PM
Response to Reply #3
8. yes, DEBT always comes first..
paying off the VISA gives you a risk free and guaranteed 18% return.

can't beat that!
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WMliberal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 03:04 PM
Response to Original message
5. coke and hookers. n/t
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cprise Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 03:30 PM
Response to Reply #5
6. that's a little too 'RNC' for my taste
Sex pros get ready for party

With thousands of Republicans set to invade the city this summer, high-priced escorts and strippers are preparing for one grand old party.

more

http://www.nydailynews.com/news/politics/story/206962p-178564c.html

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leftyandproud Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 03:41 PM
Response to Original message
7. gold and SILVER
the physical stuff...cheap coins and bars..

everyone should have a small percentage of their long term portfolio in precious metals...If we get nuked and all of your other investments go down 90%, you can be sure the rare metals will go up 900% to make up for it.

I personally prefer the white metal...you get so much more silver than gold at today's prices...

Occasionally, you can find really good deals on ebay too..

check out those beautiful silver eagle coins ;)
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tomreedtoon Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 05:02 PM
Response to Original message
9. Beef jerky. Bottled water. Shotgun shells.
These investments will enable you to survive the riots and the insanity when the economy finally collapses, and the mobs rove the streets, looking to kill.

If I were a right-winger, I'd say the mobs were the "insane drug-addicted inner city residents," but I know better. The real mobs will be those suburban types who listen to Limbaugh, who have guns, and who will charge out and use those guns when everything goes to hell.

My own sister asked me to get her a copy of "The Anarchist's Cookbook" so that she could get a formula for nerve gas, which she would use to protect her home from the...ahem..."n word"'s...who would pour out of the Saint Louis ghettos when Y2K occurred. This was the first time I have ever been truly, completely afraid of my sister.
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Porcupine Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-18-04 11:43 PM
Response to Reply #9
10. Try seeds, hand tools and canning jars....
imagine trying to keep yourself fed on stuff that grows in your neighborhood and a bag o'grain each week. Now to be valuable you will need something that converts the junk to usefull things. Hand tools.

Oh, and a treadle operated sewing machine.

Peak Oil gonna get us all sooner than we think.
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