Since DU was so quick to own QE3

[FaC]

Don't touch SEP's or IRA's that's just self inflicted damage. The savers taking the hit are pass book savings and money market acct's. Short term liquidity accts. Retirement accts may take a hit depending upon the Investment groups , spreads and strategies but have time to regain loses in the future. Anyone within 3 - 5 yrs from retirement should be in low/no risk investments with the purpose of capital preservation.

I can see this as the market rises but I am planning on having to watch the market like a hawk and try to convert back to cash when the music stops...

I agree that the people taking the hit are passbooks and money markets. However, I would add bonds to this. In my case I did college for my kids as a laddered set of zero coupon t-bill strips. The plan was that I would have a bond come due in August of every year. Until now I was ok because when I set them up I calculated the inflation rate of in-state tuition and planned to have that much money available each year. The self-induced inflation is going to really screw up my well laid plans for my kids...

[Zeus]

I can see this as the market rises but I am planning on having to watch the market like a hawk and try to convert back to cash when the music stops...

I agree that the people taking the hit are passbooks and money markets. However, I would add bonds to this. In my case I did college for my kids as a laddered set of zero coupon t-bill strips. The plan was that I would have a bond come due in August of every year. Until now I was ok because when I set them up I calculated the inflation rate of in-state tuition and planned to have that much money available each year. The self-induced inflation is going to really screw up my well laid plans for my kids...

I don't follow what you are saying.  Granted I'm not an Investment Guru.  Aren't zero coupon & coupon Bonds two different types of Bonds. Zero coupons being sold at a discounted price below face value with no periodic interest payments (the coupon) in regular bonds. Stripping is the separating of coupons from the principal of coupon bonds by Investment bankers/dealers creating a new supply of zero coupon bonds.

Regardless stocks and bonds are  somewhat of opposing market forces in that when the one market is appreciating the other is depreciating . Dollar cost averaging  with a greater amt going into the leader at the time of Investment might negate any loses in the long haul. naturally the closer it gets to the time the funds are needed the more conservative/less risk your investment strategy should become.

[BEG]

Chase called me the other day to try to get us to switch our checking and money market account to them (we use BofA, no lectures please). The huge bonus they would give us for moving all of our money...$100.   It would cost me more time changing all of my auto payments I have set up through my online banking account, a $100 wouldn't even start to make it worthwhile for me. They can't give us any more interest on our accounts than BofA, why would they think $100 would make me jump at the offer?

[FaC]

I don't follow what you are saying.  Granted I'm not an Investment Guru.  Aren't zero coupon & coupon Bonds two different types of Bonds. Zero coupons being sold at a discounted price below face value with no periodic interest payments (the coupon) in regular bonds. Stripping is the separating of coupons from the principal of coupon bonds by Investment bankers/dealers creating a new supply of zero coupon bonds.

The lady that I work with calls them zero coupon strips so that is the term that I used. They are what you described as a zero coupon. I did buy them at a discount from face and I pay taxes on "shadow interest" every year. I get a 1099-OID with the yearly interest but don't actaully get the cash that year. When they mature I get the face value of the bond but I still have to pay taxes on the interest for the final 9 months.

I used some tools to try to predict college costs based on in-state tuition and when the kids would graduate from HS. Once I had that number I then purchased a bond with that face value (at a discount) for each year of college. The plan is that when each college year comes around I would be able to cash in that year's bond as it matured and then pay the college bills.

[Freeper]

Chase called me the other day to try to get us to switch our checking and money market account to them (we use BofA, no lectures please). The huge bonus they would give us for moving all of our money...$100.   It would cost me more time changing all of my auto payments I have set up through my online banking account, a $100 wouldn't even start to make it worthwhile for me. They can't give us any more interest on our accounts than BofA, why would they think $100 would make me jump at the offer?

Who would lecture you about who to bank with? This isn't DU. 

[USA4ME]

When inflation hits -- and it will hit --  it's gonna hit hard.  The primitives will be screaming them.  There's not a single one of them on the island who know how to invest in order to beat inflation during those times.  Not a single one knows how, they're all financial idiots.

But oh, the stories they'll have for us to read.  And of course, as we all know in advance, it'll all be the Republicans fault, they'll have to include that.  But still, the stories...

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