You might ask … what a funny title. But that’s the truth. Due to the downturn in the US economy right now, the I’m actually losing money by putting money in my 401K account. Although I have a diversified portfolio of stocks, bonds, mid cap, large cap stocks, fortune 500, and international stocks, I am still losing money. Had I kept the money to myself, I would have been better off. Off course, you say that it will get better but its just really annoying to see your money getting wasted like that.
The value of the US dollar is horrible compared to most foreign currencies and on top of that, real state prices are not going down that much in the bay area. You would expect with all these economic problems, the house prices would go down significantly. That is not the case in San Francisco at least. Especially in the newly developed high rises, a 1 bedroom apartment sells for a minimum of $600,000. A nice spacious 3 bedrooms apartment costs you around $1.4 million. And that’s if its on a low floor. Add a couple of hundred thousands as you go higher in the building because of the “better views”.