No. of Recommendations: 0

I agree with you entirely. I wouldn't get involved in stocks except for the need to try to keep up with inflation.

Please note that that we have already had the BAC bond for 7 years and the GE bond for 6 years. The interest from these helped us during the bad times during the last decade. Our "safe" money is in CDs. Sadly our 6% and 6+% CDs are maturing and we are not going to be able to renew them at better than half the original rate. But are still getting the 5+% on the GE and BAC bonds.

My father was a CPA, and I know just enough about the theory of accounting to know that a company that is profitable in one theory of accounting may be losing money in another theory. This in fact happened to a company my father helped as a start up - Control Data. First they sold computers and booked the revenue, but, as time went on, gradually they didn't sell computers but leased them. Do you book the whole lease or do you prorate the revenue over the period of a lease? Well Control Data at the beginning of leasing just booked the whole lease and looked very profitable. When they converted to prorating revenue over the term of the lease, they went to steep loses. There are special terms for what I am talking about but I have long gone forgotten about them.

I also ran into this when I was working for pay. We had an open order to buy, say, up to five computers over the next five years. Our accounting department wanted us to come up with the whole sum the first year! There was no way we could do that. It was hard work to get them to let us just pay for the computers as we acquired them. We just didn't want to go through the bidding process five times and maybe lose some benefit of a bid for a group.

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