Investments

[balactm]

RJ's got causation a little mixed up

His underlying point is right, though, gas won't come down until usage goes down. Usage is high, there are sketchy expectations of future availability for a whole host of reasons, and people are clamoring hand over fist to get at it. What do you think's going to happen to the price?

usage won't go down until we find a new way to run engines...either that or 20 years, when oil runs out...

[D_Eclipse9916]

This is my opinion on the matter wether it be wrong or right..
The global economy is slowing down so speculation is finally losing its ugly head. Thats why gas is coming down from 140 a barrell. These eventually should trickle down to the gas stations. I still see gas coming down and settling arund 80something a barrell. There are plenty of supplies, in fact most places have increased production, including the middle east despite the media bitching about how they wont produce anything.
And since this gas scare the government and everyone else is investing in all these ways to find new gas and they upped the reserves to record levels. There is plenty of gas, if everyone would stop just freaking out.

And RJ guess what? You still have to pay whatever they put, and maybe you think your using less gas, the average car vs savings with using less gas is pittance to what you pay in gas in your average airplane ticket. It even gets funnier when you realize your paying these gas bills through buying groceries at your grocery store. Everyone seems to think omg if we just reduce the number of people on the road...no...regular drivers like us dont make a dent in how much gas is used.

Oh and guess what? I walk to class everyday, and I have paid maybe 80 bucks in gas in the past...oooohh...8 months? Isnt it beautiful not having a car.....NOT...goddamnit! I want my car sooooo bad.

Now remember kids, this is my opinion, so dont get butthurt if you think im wrong.

[Ginger]

You don't say? The race for alternative transportation technology *is* being driven by the current equilibrium price of petroleum based fuels. The latter point you make is exactly why the price is high at the moment: nobody knows when oil is going to run out and everybody wants to be able to get it.... the futures' market is booming. The short term "supply shock" the shoutheast is experiencing is also a result of speculative pandamonium.

Oh noes! Gas is going to run out! Get it now! Ike is destroying all the refineries! buy gasses now! !!!! one elecvenBBVQ!!!

Ninja edit: DJ's post intervened, making me look autistic.

[Ole]

I did but I don't really agree with it.

FWIW, most of "my families wealth building" has been real estate investments so it's not like I'm biased against them. I just think diversification of investment vehicle is always a good thing.

You said it. Diversification is the single most important factor in building wealth (even if your family has 100 acres outside of Leesburg). How has RE done in this area (or almost anywhere else for that matter)? Its down. If you have the good fortune to invest in your company's 401K and do not, as well as many other planning options, you are short-changing yourself.

If you want a retirement planning investment that you do not have to pay taxes on when you withdraw your funds, there are many available. If you qualify for a Roth IRA you should do it. The problem with the Roth is, many earn too much to qualify.

[Ole]

Even further, if your income level allows you to qualify for a Roth IRA and are able to participate in your company's 40lK and that plan matches your contribution, your are short-changing yourself even further.

The argument that "I don't want to do it because I'll pay taxes later" makes little sense. That would be like turning down a raise from your employer because you will have to pay more taxes. The beauty of investing in a Tax Deferred investment is that you get to defer the taxes that you would normally pay now. Pay taxes later with cheaper money and at a time when you can decide how much you want to take out, thus controlling the amount you pay in taxes.

If the employer matches, you are getting free money....

[.RJ]

The global economy is slowing down so speculation is finally losing its ugly head.

And the dollar gaining strength against the other worldwide currencies has nothing to do with it?

There are plenty of supplies, in fact most places have increased production, including the middle east despite the media bitching about how they wont produce anything.

You mean, reduce production right?

<!-- m --><a class="postlink" href="http://money.cnn.com/2008/09/10/news/economy/bc.opecmeetingtops.ap/index.htm">http://money.cnn.com/2008/09/10/news/ec ... /index.htm</a><!-- m -->

And since this gas scare the government and everyone else is investing in all these ways to find new gas and they upped the reserves to record levels.

What new investments are being made since the price oil went over $100/barrel? I'm curious if there is anything new? Alternative fuels research has been going on for some time, including the heavily subsidized GM EV1 that was epic fale.

There is plenty of gas, if everyone would stop just freaking out.

Agreed. That was my point.

And RJ guess what? You still have to pay whatever they put, and maybe you think your using less gas, the average car vs savings with using less gas is pittance to what you pay in gas in your average airplane ticket. It even gets funnier when you realize your paying these gas bills through buying groceries at your grocery store.

Yes, the cost of fuel affects everything. I was referring more to the recent price spikes. I can ride my bicycle or take the metro, there's plenty of other ways to get around.

I would love to see the 'evil oil companies' shut down production and distribution for a few days. There wont be any talk of 'windfall taxes' after that. Remember, it wasnt that long ago that big oil was hurting for profit.

[WRXtranceformed]

You could spout off facts about 401ks all day long, it's nothing that I haven't read about and studied over and over and over. I was not impressed with the gains from my 401k since I left college, even with maxxed contribution and excellent employer matching. And yes I understand it's a very long term investment and it set up to grow as such.

I don't make $120k / year yet so I'll be setting up a Roth IRA as soon after I recover from making it rain at the strip club two weeks ago at my buddy's bachelor party :lol: You're right, real estate in VA has been terrible for the past few years... I used to work in that industry in that market. I don't plan on investing into anything in that area until things drastically change. The Charlotte market has suffered like most other markets but is still fundamentally a good place to buy and invest... do the research if you don't want to take my word for it.

My plan is to maintain the liquidity to be able to invest aggressively in more properties, ie foreclosures which are abundant right now (again, when I have the means to do so). I'll be surprised if I'm even alive at 55 to be able to cash out my 401k!

[Ole]

Well since you are so well versed in 401Ks and other retirement vehicles for that matter; let me correct you, the age at which you can remove money without a penalty from a 401K, Roth IRA and IRA is 59-1/2 not 55 (with few exceptions). Furthermore, if you do not plan to be alive at 55, why would you invest in either of these?

Spouting done.

[Evan]

ugh.... fed probably going to lower rates today. Before this recent mess they were planning on raising them.

Say buh bye to the strengthening dollar.

[Ole]

ugh.... fed probably going to lower rates today. Before this recent mess they were planning on raising them.

Say buh bye to the strengthening dollar.

I have a dollar that says I have a dollar in my pocket that will kick your dollar's butt....

[WRXtranceformed]

Well since you are so well versed in 401Ks and other retirement vehicles for that matter; let me correct you, the age at which you can remove money without a penalty from a 401K, Roth IRA and IRA is 59-1/2 not 55 (with few exceptions). Furthermore, if you do not plan to be alive at 55, why would you invest in either of these?

Spouting done.

Not that it really makes a difference, but thanks for correcting the age for penalty free removal. I was too lazy to Google "401k" just to make a point in my post so I rounded down Either way, if my liver lasts until I'm 50 I will be very impressed, and if it does all of that tremendously awesome 401k will be put towards a liver transplant or life support....since all of you old people will have exhausted SS by then. Your generation should be kissing our asses!

[Ole]

Your "Generation" comment is more indicative of your ignorance than anything else you have written.

[WRXtranceformed]

Oh snap.

[Ole]

We are rarely good at Cyber-asskicking though....

[WRXtranceformed]

Hehehe!

[Evan]

screw those lazy ass babyboomers

[Apoc]

Gooooo interest rates go! Daddy needs a new mortgage!

I was not impressed with the gains from my 401k since I left college, even with maxxed contribution and excellent employer matching.

Kinda sounds like the real estate market too. Your sample size sucks.

[Ole]

screw those lazy ass babyboomers

Don't you have some mud to mop up?

[D_Eclipse9916]

The global economy is slowing down so speculation is finally losing its ugly head.

And the dollar gaining strength against the other worldwide currencies has nothing to do with it?

There are plenty of supplies, in fact most places have increased production, including the middle east despite the media bitching about how they wont produce anything.

You mean, reduce production right?

<!-- m --><a class="postlink" href="http://money.cnn.com/2008/09/10/news/economy/bc.opecmeetingtops.ap/index.htm">http://money.cnn.com/2008/09/10/news/ec ... /index.htm</a><!-- m -->

And since this gas scare the government and everyone else is investing in all these ways to find new gas and they upped the reserves to record levels.

What new investments are being made since the price oil went over $100/barrel? I'm curious if there is anything new? Alternative fuels research has been going on for some time, including the heavily subsidized GM EV1 that was epic fale.

The dollar has strengthened only slightly compared to the drop in gas prices from almost 150 to 95 dollars a barrel. Yes it counts for a little bit, but not nearly the whole picture.

And RJ, read your article, as stated OPEC has been "saying" they cut production, but in reality they have been still producing more..Here is even a quote from the article you posted...

"OPEC overall regularly churns out oil above the organization's overall quota, last set in November at 27.3 million barrels a day, and it remained unclear whether group members would abide by the decision to keep to their limits"

Thirdly in reply to investments made, shale oil has seen generous amounts of investment from many oil companies returning to america and look to the northwest for shale oil.

There have also been increasing interest in e85 despite all the downers lately. A new plant is being built at the moment we speak that "promises" (we all know how this goes) to be able to make ethanol for a 1/7 of ethanol's energy. The technology looks interesting, we will have to see.

[.RJ]

Ethanol. Seriously? :roll: