Cohousing-L Mailing List: Re: Investing Reserve Funds

[Janet Murphy (janetmusicrn]

Many "condo associations" (which by law we are in Wisconsin) have
restrictions on investments in their bylaws. You should check this first,
and not invest in anything prohibited.
When we were forming our lawyers knew to take these restrictions out, so we
can invest in anything we want. Happily, we have a very responsible Finance
Committee, and all it's meetings and decisions are  open and announced to
the members.
For the first 5 years we stuck with conservative instruments (CDs). As our
reserves grew we thought it prudent to take on investments with better
returns and slightly more risk.

Here is a link to the most recent BLS news release:
https://www.bls.gov/news.release/pdf/cpi.pdf

>From July '17 to July '18 the consumer price index was 2.9%. I'm not sure
where Brian got 8%. Always do your homework, and double check every claim,
whether from a friend, bank, investment advisor, or article.

Janet Murphy
Arboretum Cohousing, Madison WI

On Thu, Aug 16, 2018 at 5:16 AM, <cohousing-l-request [at] cohousing.org> wrote:

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>    1. Re: investing reserve funds (Brian Bartholomew)
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> Message: 1
> Date: Thu, 16 Aug 2018 05:01:33 +0000 (UTC)
> From: Brian Bartholomew <bartholomew.brian [at] yahoo.com>
> To: <cohousing-l [at] cohousing.org>
> Subject: Re: [C-L]_ investing reserve funds
> Message-ID: <767083831.8846532.1534395693439 [at] mail.yahoo.com>
> Content-Type: text/plain; charset=UTF-8
>
> > Keep in mind, that if your money isn't earning interest somewhere,
> > you are actually losing money every year.
>
> I hear consumer price inflation is running 8%/year.  Does a roof wear
> out faster or slower than 8%/year?  Maybe you would be happier with a
> new roof now, than with a new roof in 15 years after 2/3 of the
> purchasing power of your reserve fund has been taken by inflation.
> Likewise for commercial kitchen appliances, heating and air, plumbing,
> paving, well drilling, solar power, or other durable goods which might
> wear out and lose value more slowly than the dollar.
>
> Brian
>
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