I am semi-retired, and some of my retirement money, because of the State of Texas, is in Fidelity Mutual Funds, however, they stopped offering a few mutual funds (that I wanted to reinvest my money back into prior to 2008) however, after taking a pounding around 2000-2001, I put my money into a money market fund, and government bonds, etc., with a constant $1.00 value, I have not gotten back to where I was in 1999 within the Fidelity Funds. However, the money is growing, slowly, on the sidelines.
Also, in early 2008, with what funds I have in a Self-Directed Rollover IRA/Roth IRA account, with Vanguard Brokerage, I sold off some of my stocks because the P/E (Price Earnings Ratio) and the earnings from the "Consolidated Statement of Cash Flows" regarding Operations Profit told me that it was time to get out of stocks. Citigroup was run by Mr. Prince, who was the handpicked successor of Sandy Weill (sp), the man who stepped down many years ago from running Citigroup. Prince was "finally" kicked out, but the damage was already done by Mr. Prince and his co-horts. He walked away with millions in his pocket.
Where can I get in line to be paid millions for failure? I am ready to join "that" group....Get rewarded millions for failure, what a twist of events. A sad commentary on America today, and the greed that has flourished, and the lack of governmental regulation and oversight. Madoff made off with a lot of people's money, and did not invest one penny, just had an elaborate "Ponzi Scheme."
Of course, he was the former president of the NASD (National Association of Securities Dealers), how could he do someone wrong? Well, now he is in jail awaiting his sentence, with probably more people to follow him too.
I retired from the teaching profession in January, 2001, and now work because I "want" to work, not because I "have" to work.
I learned from the October 19, 1987 smash, to get on the sidelines, and when you get an annual report, look at the Statement of Cash Flows and the Statement of Operations do you see an upward or downward trajectory on earnings from continuing operations from year to year? This is one simple way to see if the company you have invested in is growing or not. Usually they show 5-10 years of that type of operations in their annual reports. If you see that the "profits" are going up, then you know it is being profitable, providing the management and accountants are stating the truth, which nowadays is somewhat in doubt. Also, if you have internet access through your account to see who is investing and who is not, use that information to your advantage. If the major institutions are buying more than they are selling, and the insiders are buying too, then consider buying the stock, if not, stay away from it. Heck, I could write a book on this very subject on this forum.
The main thing to remember is that for the most part, since 1984, the responsibility of directing your investments are on your shoulders, not on the company anymore, thanks to the proliferation of the 401(a),(k) in the retirement arena. The government passed it into law in 1983-1984, which gave every company the excuse to stop the "defined benefit plan" where the company sends you a paycheck each month, and is responsible for any losses sustained, to a "defined contribution plan", the worker is left on his/her own, with some companies matching whatever the worker puts in toward his/her retirement up to a certain level of contribution.
I am so glad that the President Bush plan to put Social Security in Wall Street's hands "FAILED."
Thank God for that small favor.
Amen
