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Less than 0% return on investement.
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Ray    Posted 04-12-2003 at 10:49:23       [Reply]  [No Email]
When my father died 6 years ago he left my 13 year
old son $6000 to invest.We called the Edward jones
co and were told the Putnam fund was a good
investment averaging 15% over the last 20 years.
Well, 6 years later he now has $5700 dollars to
show for a $6000 investment.They keep telling us
it will get better,but when I asked them how long
it would take to get back 6 years of interest
plus the principal they tried to change the
subject.I told them just to send me a check,I'm
tired of paying them a commission to lose my son's
money.Is everyplace like this?

RayP(MI)    Posted 04-15-2003 at 18:17:43       [Reply]  [No Email]
Yeah, wife had a "conservative growth" retirement account with some company that uses Snoopy for a logo. This was supposed to be a "safe" account with moderate growth - those fools were loosing money on that account when the stock market was going UP! She was fired from her job of 22 years, and had to cash it in. When it finally settled, she was lucky to get out what she put in: no interest, no employer contribution, all the growth was lost. Then Uncle Sam held his hand out, and Gov. Granholm wasn't far behind!

Ludwig    Posted 04-14-2003 at 06:03:16       [Reply]  [No Email]
When you invested they'd have shown you a disclosure form that said in part "The market is not garented(sp) you may lose your money" then remember in 2001 the markets came crashing down. If you're surprised you've lost some money you need a wake up call, EVERYBODY is losing money.

Also just taking your money to a "money man" and having it invested in what he says is good is an excellent way to lose money. Research, research, research.

Here's a real kicker, Putnam loses about $2 billion dollars a day as a company...

Ludwig -oops!    Posted 04-14-2003 at 06:04:18       [Reply]  [No Email]
$2 billion a year I ment.

Ed    Posted 04-13-2003 at 14:20:48       [Reply]  [Send Email]
I yanked all my retirement savings out of mutual funds about three years ago and put it into T-Bills and Money market funds. Not a great rate of return but almost no risk.

You could see this coming when the Information Tech companys started to go nuts. If somthing looks like it is to good to be true, it usually is.


Hal/WA    Posted 04-12-2003 at 22:57:53       [Reply]  [No Email]
That seems to be what has happened to almost everybody with mutual funds that I know. I put money away in deferred comp at work for years and had it invested in several different ways, partially in what was supposed to be a very high yield mutual fund. Now the total value of my deferred comp is about 90% of what I invested, and that is after a number of years that supposedly my mutual fund did very well. The mutual fund is worth less than half of what it was. I am hanging on, hoping we have seen the bottom of the valley and will be back on an upgrade soon.

Luckily I have a good pension through the state. I don't absolutely have to have the money I put in deferred comp. I did the deferred comp because they sold me on the idea that I could save money on income taxes by deferring the income until I retired and was in a lower tax bracket. It seemed like a good idea at the time, when investments were actually giving some return. Now I wish I had just made extra payments on my mortgage or bought more tractors.

It could be worse. Some stock that my mother inherited went from about $60/share at its peak to around $0.50/share. I think the company, which had been a utility for 100 years got raided and changed their focus to communications. I wanted her to sell it when it was high, but my brother talked her out of it. She lost about $150K. Ouch!

The investment people all claim that the stock market has been about the best investment for discretionary funds available over many years, and that it will come back strong. I bet most people will be a lot more cautious with future investments. I will.....

Yankee    Posted 04-12-2003 at 17:07:35       [Reply]  [No Email]
If my daughter got that amount left to her I think I would go to the bank and talk to my banker lady and find a nice high yeild acct to open for her,and maby in 20 or so years she could have a decent amount in there.Who knows till you ask.

rhudson    Posted 04-12-2003 at 17:07:28       [Reply]  [Send Email]
Hi Ray,

My Mother died a few years ago leaving me all the money she and my Father worked all their lives to save. He had invested in Janus funds. the increases were outof this world. so i had to put them in my name, but left them in the same janus funds. well in 12 months the bottom had dropped out. Janus went from number 1 to 200th within two years. i feel like a finincal failure and that i have lost part of the family "fortune". i think its like that everywhere.

DeadCarp    Posted 04-12-2003 at 16:02:59       [Reply]  [No Email]
My advice? Buy a house. Or a lot. Or acreage. Whatever turns you on. That's not a tax return - that's a down payment on your retirement! On any place - almost anytime at almost whatever the seller wants. (What matters? How much down and how much a month are the only things that will affect you! Odds are you'll never keep the thing 30 years anyway, so if you can swing it, do it) I've done this several times in the last 40 years and NEVER lost yet. I pretty much loaf, the payments roll in and still have places in 3 states. My first house cost 12,500 brand new in the 60s - maybe this place is worth a comparative mint but so would that place be by now. :)
I noticed a long time ago that i hadn't made money on a car and never lost on property or guns, so deal in what you like & what works for you. :)

Cathy in Oregon    Posted 04-13-2003 at 19:31:54       [Reply]  [Send Email]
I have to agree about buying land.
My Grandpa did that in the late 50's and 60's. When he passed on there was quite a bit to go around ... enough to where each of his kids were left 40+ acres or cash. (which ever they wanted) Some of it is prime timber land.
My Grandpa was just regular folk like all of us. He worked hard every day of his life. He had a good head on his shoulders and the Good Lord blessed my Grandpa for his hard work. Every little bit he had he put in land.
My parents are retiring and we are living on the farm that we inherited from my Grandpa. I am farming it and because we are on farm deferal the taxes are less than a thousand a year. That is cheap rent! And if times get really tough we can always sell out. But what we are all hoping for is that the land is around for the next generation! ;O)

magpie    Posted 04-13-2003 at 09:11:18       [Reply]  [No Email]
I got stung on mutual funds too. I now firmly believe in that old saying that land is a good investment, because,they aren't making any more of it.

Fawteen - Which is why    Posted 04-12-2003 at 13:22:07       [Reply]  [No Email]
I'm yanking all my Mutual Funds as soon as I can do so without penalties, and putting them in Garaunteed Return IRA accounts. Right now, It's locked in at 3.5%, but 3.5% in the bank is better than 15% in some broker's imagination.

Ol Henry    Posted 04-12-2003 at 13:15:48       [Reply]  [No Email]
Yes and no. a full service broker will try to sell you whatever his firm is involved with, that may be okay when we are in a bull market because his mutual funds will follow the market up but the reverse is true in a bear market, also they will not be able to offer no load funds,
you have to realize that your financial advisor is really a salesperson and makes a living from the commision on anything he sales you.
A discount broker will have a lot more funds that are available to you,but you need to have an idea of what you are buying.
I suggest you read a couple of books about the stock market and learn all you can about how to invest, such what are front load, no load or closed end funds. $300 bucks was a cheap lesson

Duke Black    Posted 04-12-2003 at 12:32:04       [Reply]  [No Email]
I don't know if every place is like that! Sounds to me like he didn't do to bad. The market is a funny place. If he needs the money take it out, but now is a bad time to get out. You don't lose any money untill you sell. If you believe in the fund your in wait for a up swing in the market to sell. You can put it for sale at your price (limit sale order). Wait for a buyer. This is all my opinion do what you think is right.

Duke Black

Fawteen    Posted 04-12-2003 at 13:26:42       [Reply]  [No Email]
You may be right for folks that have a wad invested and 40 years before they're gonna need it.

For the other 90% of the people "hanging on" until the market rebounds (in my own, uneducated, once-burned opinion) is pouring money down a rathole.

The Market is for people who don't need the money. As someone who's lived hand-to-mouth most of my life, I'm getting out, and staying out. See my post above.

Duke Black    Posted 04-12-2003 at 14:18:47       [Reply]  [No Email]
Good afternoon Fawteen. I seen that post up there. This is your opinion, and you are very welcome to it.
I would suggest you gets some books, and read up on stock market trends. I know it's boring, but well worth the time.
Good luck to you in what ever you decide.

Duke Black

Ann    Posted 04-12-2003 at 12:16:14       [Reply]  [No Email]
Ray my husband and I had the exact same experience with Putnam.ONly we put in 40,000towards our retirement.That also was about 5 yrs.ago.We now have less than 30000.This bs that it has averaged so and so ya right!!Maybe it because us country folk aint to bright. Ann

Randy    Posted 04-12-2003 at 12:05:44       [Reply]  [Send Email]
My friend has been a money guy for 20 plus years. He says it's the worse that he's ever seen. He does arbitration, if you lose money because your broker was a bad person he goes after them and tries to get back what he can.
Your son is lucky he has most of his money still. Imagine what the used to be rich lost!

Cathy in Oregon    Posted 04-12-2003 at 13:13:29       [Reply]  [Send Email]
Makes burring your money in a canning jar in the backyard look like a VERY good idea if you ask me

(Dang, where did I put that map??)

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