The Ty Cobb Approach to Retirement Investing
Swinging for the fences isn’t always the best tact when you’re talking about investing. Income investors and savers prefer a little more steadiness, and a whole lot less risk. There are ways to allocate your portfolio to bring in the gains you need to live the life you want, while protecting your nest egg. To learn the basics of this portfolio, read on…
Thanks for link, Bobby. I read the article and could argue with many of his points.
I will focus on one….
there are many problems with real estate, vs. gold, as an inflation hedge (or as an asset of choice during a crisis):
* 1st: with regard to property taxes. You could argue that one never owns real estate, but rather leases it from the government.
the government could also raise the property taxes during a hyper-inflation to the point that you would not be able to hold on to it. (Read about how the Rockefeller’s could not hold on to some of their land holdings as a result of taxation)
* 2nd, the lack of transportability. if you need to flee the country (or flee within the country), you can’t take the land with you
* 3rd, the liquidity issue of being able to convert it into goods/services during the time of crisis.
I could go on and on regarding some of the other points. Suffice to say that Mr. Armstrong is going to be as surprised as most will be.
I kind of agree with you on this one Eric.
I do think that real estate has its merits however.
Thanks, Al.
And note, I wrote that as a person who is quite diversified into real estate. I just don’t think it is ‘good as gold’. :o)
As an after-thought, I remember reading a book about the hyper-inflation that took place in Germany. There was a wealthy individual who said that his best performing asset during the crisis was a potato farm he owned, since he could sell potato’s to the general public at the time.
I think, among real estate options during a crisis, the farm land would have the most utility (provided that you can secure it). But we are not talking about residential or commercial real estate. For example — what happens when your tenants are paying you in deflated dollars (based on your lease terms) and your property taxes are getting adjusted based on the hyper-inflation.
A final thought… I have never been one to assume that you need a hyper-inflation to crater things. If you raised food and fuel prices in the US by even 100%, without a commensurate gain in incomes, and you’d be in a severe depression.
Eric (BIG AL)
Another very bright analysis and well delivered – thank you, Eric! I am huge fan of real estate. Real estate has been a family investment for decades. Although somewhat modest holdings, I fully understand its true wealth! My CPA often stated that in all his many, many years of observing people’s holdings; the ones in real estate far out-gained their counterparts is capital wealth building. NOW with that said, time are a changing. That is why I diversified into gold and silver. And Eric’s points pretty much summed up why! Great job Eric. We can all safely agree that HARD ASSETS of any kind are the way to go. But if you want portability, etc…gold and silver….are, of course, must haves!!
Good points Eric, as a real estate broker, I agree completely. One does need a home however, i prefer to rent.
Re: gold and silver, security is a major issue, I learned the hard way when the vault in LV that I used for storage was robbed. I was one of the fortunate ones that was spared.
Thanks Bobby,
As soon as I am done with our first interview, I will read it.
Best
The dollar index has fallen well below 80 and that could be a good signal for gold.
I am not sure that I would call 79.85 well below 80, but regarding the apparent trend, you are certainly correct Paul L.
i agree Al, “dipped below” would be a better term.
Agree guys, But as Jim Sinclair stated, that is where the war will be fought!
Could be the start of a new trend down.
Paul, you might like this: http://www.silverdoctors.com/jim-willie-seismic-waves-of-destruction-coming-for-the-us-dollar/
For retirement savings, I would suggest you work out what you will need and then double it.
And then when you reach that target,
double it again.
easier said than done! maybe the young man can accomplish it.
Even in times of low inflation, there is a tendency to underestimate retirement needs.
The future can contain nasty surprises, even for the prepared.
Anyone listened to this commentary from Stansberry Research on China buying up gold and gold going to $4000 which makes no sense:
On April 24th, 2014, China will unveil a secret new financial weapon, built to
bankrupt millions of Americans
A decade in the works, this unique weapon will disrupt nearly every aspect of normal American life, with potentially devastating results. Learn what you absolutely must do now to prepare and protect your family…
http://pro.stansberryresearch.com/1402OILCHNGO/MOILQ207/?a=10&o=36864&s=40223&u=1592451&l=235696&r=MC&g=0&h=true
promoters!
When we pass on we take nothing.
Three billion people on our planet live on less than $2.50 per day.
80% of every soul on this planet lives on less than ten bucks per day.
22.000 children die of poverty every day.
Half of the 2.2 billion children on this earth live in poverty.
Bankers,parasites and those that never have enough.First world people and their problems.
your point is well taken.
Ted Turner, who is one of the top private land owners in the US, has said that he believes all the land in the US will one day be up for grabs again. (Thinking about that is kind of scary, but it is was interesting to hear him say it).
Also, apart from the extreme poverty throughout the world, I think we are getting many examples of the growing divide between wages and the cost of living in the developed world (and the social disorder that can follow as it gets too far out of hand).
It didn’t get too much media coverage, but the other day when you had people spray paint homes and cars in Atherton California (one of the wealthiest residential communities in the US) — that was just one tiny example of what can happen.
With the quality of US politicians, just wait a few years and you can join the masses ,whether you like it or not.
Eric and Matt,
A “BIG FAT” I hear ya!!
Big Al, with the Ty Cobb approach to investing we don’t take no guff from banksters or gold manipulators! And I don’t care if they got no feet!
“Cobb climbed into the stands and attacked Lueker, who it turns out was handicapped (he had lost all of one hand and three fingers on his other hand in an industrial accident). When onlookers shouted at him to stop because the man had no hands, he reportedly retorted, “I don’t care if he got no feet!”[59]”
Here’s my favorite Ty Cobb story…
reportedly, several after he retired, he was invited to an ‘old timers’ exhibition game.
As he came to the plate for his chance to hit, he said to the catcher — “I haven’t done in this in a while and don’t want to accidentally hit you in the head with my swing. you should move back a little bit.”
The catcher nodded his head and moved back a foot or two.
On the next pitch, Cobb bunted.
Cobb was a very colorful fellow. He also became a very rich fellow.
I think I will have Cobb salad tonight in his honor.
a must read word from MA on Gold, defacto currency, reserve currency, hyperinflation, geopolitics, promoters and “this time it’s different.
http://armstrongeconomics.com/2014/02/27/the-gold-question-luck-v-fate/