Afraid of losing it all?

Following on from here: ( off topic) https://rennlist.com/forums/996-forum/291480-income-of-a-911-owner.html Are you ever afraid of losing your wealth and going back to a beater only and living in a one room apartment in a tower block on the wrong side of town? Shudder at the thought but all economic indicators are showing 2007 is going to be a bad year. Anyone been a winner, lost it all and fought back to carrera GT type wages?

nope but i',m headed to vegas next month!!!

Not too scared - after a very expensive divorce I bounced back to being debt-free in about 3 years, so financial disaster doesn't look so frightening now.

"Expat Brit in Socal" "after a very expensive divorce" Heh, must have married an American.

No, British women have learned from their American sisters. I came to SoCal because there wasn't much left for me back home... Still, if you're going to be newly divorced and entering a midlife crisis, this is a great place to do it!

Following things come to mind : - always keep your guard up at work. Never drop the ball. Every meeting is war/battle. You're always on stage. - only work for top companies, preferably in non cyclical industries (e.g. pharmaceuticals, foods) - alternatively : have your own business - prenup - umbrella insurance - hold your wealth in different currencies - go off-shore with your nest eggs (i.e. keep it out of the hands of US or other courts).

Pretty good advice! let me add: - Don't get divorced, the Porsche is cheaper! - Save most of your wealth in liquid assets with the potential to appreciate (stock,bonds,etc) Owning your own business is the best way to get rich, but in all honesty none of us knows whats around the corner in 10 years. How many businesses have closed since 1996 and nafta? You do the best you can every single day, save your money and hope for the best. I don't fear a future with nothing but a beater car and a small apartment. I was happy when that was all I had then, why fear it now?

I would ad incorporate to the list of things put cars and homes as the property of "yves atlanta inc." or some such. Or marry someone who's richer than you...so you can take half her stuff

Simon, I'll see you and raise you one, been through two and still kicking. One more and I'll have to work till I die.

Fear of losing it only drives the need for more of it. Don't worry, be happy. Always be content with what you've got and you'll live a long and happy life.

Hehe, you win !

Wow..............this forum never fails to surprise me............I received some ****ty news today regarding my pay for the rest of the year. I am on vacation on Nantucket spending like a GT2 owner and...........wham..ugh...wtf. The news was not terminal, but I will be returning those voice messages from the head hunters that I received on Monday. I wish I could have bought you all drinks a few hours ago when the sun setted on the back patio of the Wauwinett house (i know you guys know cool spots as well!!!=btw, saw a white 993 on the island!!). You young guys, pay attention to the notes above and the experienced wisdom that was offered=it might come in handy! Cheers! Stevo

What economic indicators are you looking at? The job market has reversed and for several industries there are more jobs than candidates to fill them. This was actually predicted 2 years ago by all the leading market analysts. Job growth has not slowed and this is the best indicator. The fed raising interest rates also supports growth. Yes, there is an impact from the high cost of oil and it does cost inflation, but that is only 1 small indicator. There is a lot of concern about the middle east, but there are very limited investments in that region in any of the popular mutual funds. Is the market going to go up at the end of the year, every leading economist says no and I agree with them. I don't think there is any speculation in the market anymore and the market reflects the actual investment in it. There will be some ups and downs, but you aren't going to see high gains at the end of the year. Get a good financial planner to watch your investments. I went through a few before I found one that was really active. Look at bonds and dividend based funds right now if you are worried and you'll be fine. There are a lot of big companies that were hurting, but will show profits this year. Although their stocks may not rise, dividends will still be issued. With that said and done, here are the life lessons I learned: 1. Spend less than your means (why I bought a Carrera and not a Turbo) 2. Don't plan on Social Security or inheritance as part of your retirement (if you get it, it is a bonus) 3. Max out your 401K every year 4. If you don't have a 401K or are not eligable, do an IRA 5. Own, don't rent...it is one of the only tax breaks we still have 6. If you have the money, do a Roth IRA every year (remember you only pay taxes going in) 7. Get educated and stay away from blue collar jobs or low-end white color jobs other than trades, these will be outsourced; but they aren't outsourcing management 8. Always continue to educate yourself, when you stop learning you become obsolete 9. Be flexible, the work environment is rapidly becoming a global environment 10. Network all the time, you never know where your new job or opportunity will come from

I'll echo. Find a financial planner who you trust like a father/uncle. Make sure they get ulcer's worrying @ your money. If your planner is good, they will put your in good dividend stocks that grow. Every month or two, they may find a good short-term stock to throw you in that almost alway makes you quick bux, use their knowledge and research. Find a job that matches your 401k. A good one will match 7 to 10% and more as you grow older. Buy in CASH. Keep liquid. Keep NO CC debt and NO CAR DEBT!! ALWAY PAY YOUR BILLS ON TIME!!! BUILD YOUR CREDIT! DRIVE FAST AND CRAZY!

Agree with the above comments, would add control your wifes spending habits at all costs. Credit cards are nothing but trouble.

forgot one . . . assets held in trust with you as the beneficiary . . . good for family law, lawsuits etc.

No worries, Net worth increases monthly! I learned 30 years ago to spend less than I earn, and I have done that! I also live below my means. Money in the bank Money in the CU Stocks Mutual Funds IRAs SEPs CDs Own Large Luxury Home Own Business Property Own Business Debt Free, Business and Personal Excellent Credit History Credit Card Balances paid in full every month for last 20 years I Buy, and pay no consumer interest I can pay cash for a Carrera GT, but my '99 Carrera Cab does it for me. Yes my Porsches are depreciating assets, but ya gotta have some fun...

well said! this thread is outstanding...i'll add a few 1)not only max out your 401k but max out your spouses as well if she is eligible for one. 2)start your own corporation if possible the write offs are amazing! 3)Go big on your house...as said the write offs can be huge 4)Give yourself a reaons to get up in the morning (ie drive a 911, travel as much as possibe) 5)stay in shape....1 hour of aerobic exercise 3 times a week...you will live longer...trust me! 6)find joy and honor in working hard at your job....whether you are a trash man or a ceo...hard work is honorable.

but if you live longer you need more retirement money!! my advice was: live hard, die young......too bad for me this didn't work out.....turned 40 a couple of months ago and now have to start building financial security! I calculated not getting any older than 30!

A guy I roomed with in college was an inveterate playboy and I was really surprised when he told me that he was getting married shortly after graduation. Since he always had lots of ladies who chased him, I thought it would just be a matter of time before he was divorced. About five years after he got married I saw him at our College reunion and was surprised that he was still married to the same girl. He told me that his secret to being faithful was that any time he was tempted by some girl, he would pull out a picture of his beautiful wife and that helped him to overcome the temptation. At our twenty year reunion my friend was still married to the same girl, and when I asked him how he managed to be married to the same girl for twenty years, he again reached into his wallet to pull out some pictures. This time however he pulled out a picture of his beautiful home and vacation home, his Porsche turbo, and his beautiful 50' sail boat. He told me that what keeps him faithful now is trying to imagine living with only half of those posessions.

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"At our twenty year reunion my friend was still married to the same girl, and when I asked him how he managed to be married to the same girl for twenty years, he again reached into his wallet to pull out some pictures. This time however he pulled out a picture of his beautiful home and vacation home, his Porsche turbo, and his beautiful 50' sail boat. He told me that what keeps him faithful now is trying to imagine living with only half of those posessions." Too funny

Too sad.

Why is that sad?

'Cause after 20 years of marriage, pictures of his possessions is what's keeping him faithful and not love for the woman he married. IMHO, sad, very sad. I'm coming up on 10 years and I'll tell you it's not the toys keeping me faithful. Although they are nice!

Makes sense Joe! I feel the same way. I have only be with my wife for 5 years but I feel that I am lucky everyday when I realize she agreed to spend the rest of her life with me I still don't understand what she sees in me but I am not gonna complain

Hey, I'm already poor so it can't get much worse for me.. Signed, Poor Porsche Owner (PPO)

Want to chime in : - Moving into bonds is not a smart move. This is the moment to invest in stocks. A lot of Large Caps are at a bargain. If you don't have the time to analyze the market, buy funds or rather ETFs. They will automatically difersify your portfolio. - Don't hop on the gold or oil bandwagon. You're too late. - Look across US borders. A lot of international markets are appealing. Austria is a perfect example : it offers the stable environment of a Western democracy, still while benefiting from its role as the hub for Eastern European development and capital investment. - Get some cash into savings accounts now. Interest rates are picking up. HBSC on-line is currently already offering >5%. Why go into bonds ? You might want to have some of that cash handy in order to invest into real estate once prices have come down considerably. - Most financial planners are a waste of money. The only thing they try to do is to move you into financial instruments for which they get a splendid commission. I can't even take these people serious. Read a ton of (intelligent) magazines and keep up on the news. You'll know which decisions to make. - ROTH IRA : not an option once you earn more than 150K. Most of us will be excluded from this - Invest as much as you can in your company's stock. Just kidding (Enron)

Hey Dell, I was going to ask her that very question when we were at dinner, but decided against it since I had just met her 5 minutes before that! BTW, I am TOTALLY kidding, but couldn't pass on the "set up" you handed me!

Hey Stevo, I'm very sorry to hear that you got some news that caused you to think about things like this, and if we we're any help in getting you through it, trust me that is thanks enough! I won't speak for everyone but it is likely all of us has encountered some pretty serious bumps in the road along the way. Answer those headhunter calls and don't worry, success will follow you if you work hard and plan for it. It's funny, this thread got me to reminisce about that little rent controlled apt in Queens and that god-awful vega! Thanks more making me smile this week

Searching, It's all about balance............but when the balance tweeks your nose and especially the bank account it is time to have a tag sale, not a car sale. And from the encouragement from friends and Renns................I cannot complain one but the only problem I have is the 1987 844 turbo I own in the classifieds. If somebody does not scoop it, I am going to track it and trade C4S for an A8.=sweet car...........good night. Steve

This was a very cool post, being one of the younger memebers I don't have years or experience but I wil share what I have learned. One always run your taxes through a program like turbotax a year in advance so you can plan donations and the like accordingly. Your house is always your biggest deduction use it wisely. 401K or substitute, duh. Stock options and employee purchase plans can make a lot of sense if used correctly. Get married you live longer. No credit card, (only have one for making reservations and buying items over the internet.) Have a hobby that you can profit off of, music, repairing cars, selling stuff on ebay, photography.

I look at economic indicators for a living and you are incorrect. Firstly: the Fed hikes rates to LIMIT growth, not support growth... why do you think hiking rates is called Tightening the economy and lowering rates is caused easing the economy... In regards to jobs, Nonfarm Payrolls has declined steadily from 2/06, Augusts print was +113K. This would argue that while growth is still there, it has steadily declined from 04 where the average was in low +200K. Inflation is a small indicator??!?!!? It is the number one driver of fed decisions, and on any fed release is cited as one of the main concerns... Be careful taking financial advice from a Porsche forum...

Be careful taking financial advice from a Porsche forum... Best advice here rcg412!

I agree, all I see in the UK is record personal bankrupcies, rates rises, high fuel costs and people having problems meeting their commitments of the loans they have been taking out addictively over the last 10 years. Also stateside, from what i see on TV, the house price bubble is starting to burst, dells earnings down, walmarts earnings down, people with less disposable income. I reckon 2007 is going to be a pig of a year.

Check this out: http://www.federalreserve.gov/releases/g19/Current/

I agree, 2007 is certainly looking like the year of belt tightening for many. Over 1 TRILLION dollars of ARM mortages are going to reset in 2007 at much higher rates. The cost of fuel for cars and heating your home is up over 35% vs 2006, and property taxes in many areas are rising at least 10% a year. Something has got to give, and it's going to be the consumer.

The Sky Is Falling

I have not had the highs quite to that level, but been pretty low a few times. It doesn't bother me. First, everything you have can be taken away, but no one can take away what you have done. There are things I have accomplished in my life that are priceless. I have made some people very happy. I have my first solo flight. I have a long list of things I have done and they are mine regardless of what happens. As for my value. A person's value in society is in the programming of one's neurons between their ears. The best investment you can make is in your self! The more valuable you are the more secure your future and the more likely you will reach success in life. So, to me, investment in myself guarantees me a better chance of building wealth and success in my life regardless of predictions of the economy. As for predictions for 2007, bah! Quit falling prey to other people's doom and gloom and be a master of your own destiny!

Well, for me, everything gets paid off this year. We will see how bad it gets, but I am not worried about it.

ARM morgages increase will cost people money, but give profits to a banking industry that has been hurting for years. Yes, it is bad for people without money; but good for those with it. Remember if interest rates rise, you also get more interest off your money. Yes, it is true that property taxes in many areas have risen by over 10%, but this isn't because the rates have increased; it is because the home values increased (never bad for the owners). Higher home prices is a positive, not a negative, economic indicator. My city caps the property tax increase to a maximum of 10% per year. They haven't changed the rate in over 20 years. I personally had 2 years where that cap benefitted me since my property value increased at a higher rate than the cap. Last, yes energy prices have increased and so have profit margins for producers. How many people have looked to see how much of their mutual funds are based in these areas? I have over 35% (Shell, Exxon-Mobile, etc.)in energy producers because they are very long term stable producers and yes I get dividends this year.