Author Topic: Investing for retirement while avoiding usury? (Read 5241 times)

FeeneyFan · « **Reply #20 on:** June 05, 2019, 04:58:03 PM »

Quote from: SeanJohnson on June 05, 2019, 10:59:39 AM

Epic imprudence!!

May I advise you to speak with a priest before squandering 40% of your savings based of armchair advice???

Foolish!!

I think I will speak to a priest first but I don’t know if that will change my mind. I had been thinking of rolling over with brokerage IRA and choosing my own stocks.
When looking for stocks that you would think would be ok I found that all or most have interest income listed on their income statements. In your other post on this thread you say that one penny loaned at 1% is still evil. So wouldn’t investing in a stock that makes some interest income be evil as well?

Ladislaus · « **Reply #21 on:** June 05, 2019, 05:05:09 PM »

Quote from: FeeneyFan on June 05, 2019, 02:05:46 PM

Ladislaus would investing in stocks that are in some form of licit business but also have interest income be ok? For example an oil company that makes most of its profit refining oil but also has some money in interest-bearing accounts?

I would not have an issue with that, but I would check with a priest first.

Ladislaus · « **Reply #22 on:** June 05, 2019, 05:09:15 PM »

Usury in modern banking is a bit tricky.

So, for instance, there's a cost to keep services running (customer service people, computer systems/IT, buildings, etc.) ... so it's a bit different than old Shylock handing you gold and demanding 50% back for doing nothing. Also, the business incurs loss when people default on loans. Businesses are allowed to pay their employees and make profit. So they could either do that with a flat fee system or make it graduated in proportion to how much money one has on loan. I believe that the graduate (aka interest) system is OK because the institution incurs increasing risk as the amount of money increases, so the risk is proportionate to the amount of money on loan. So it's like saying insurance companies can charge more for people with health problems in the past or with a poor driving history.

Stanley N · « **Reply #23 on:** June 05, 2019, 06:55:23 PM »

Quote from: FeeneyFan on June 05, 2019, 04:58:03 PM

I think I will speak to a priest first but I don’t know if that will change my mind. I had been thinking of rolling over with brokerage IRA and choosing my own stocks.

Strongly consider taking more control of the 401k. Some businesses don't provide many options, so that might mean rolling it over to another company (eg Ameritrade) that will let you select the stocks and funds.

If you take money out of that 401k today, you pay taxes and a penalty on it, and you can't just put it back the same. You're only 30, you have a lot to benefit from compounding returns. If you don't need the money for something else, you are probably better off keeping it in a tax-benefitted IRA.

Yes, a market correction is due. My investment advisor (with a big investment company, and not a "prepper" by any standard) started saying so 3 years ago. We've now had 10 straight years of bull markets. How many 10-year bull markets have their been? One. This one.

You can invest in stocks or funds that are likely to handle a downturn.

TKGS · « **Reply #24 on:** June 05, 2019, 07:45:10 PM »

When a business borrows money and pays interest on the loan, isn't that more a sharing of the profits of the business than usuary?

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Author Topic: Investing for retirement while avoiding usury? (Read 5241 times)

FeeneyFan

Re: Investing for retirement while avoiding usury?

Ladislaus

Re: Investing for retirement while avoiding usury?

Ladislaus

Re: Investing for retirement while avoiding usury?

Stanley N

Re: Investing for retirement while avoiding usury?

TKGS

Re: Investing for retirement while avoiding usury?