The U.S. Economy
- Billy's Little Trip
- Odie
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Basically the same thing Em said, and good advice. If your company offers a 401k, put as much in it as you can afford. I offer this to my employees with a .50 to the dollar match, and I personally put in the max. Not only does a 401k take the money off the top before taxes, no income tax as long as you don't pull it out before retirement, plus it's pretty safe investing. Because it is buying shares based on the percentage that you have chosen, when the market is down, you are still spending the same amount of money buying shares, so you are now buying a lot more shares. Now, when the market rebounds, your vestment snowballs.melvin wrote: Prudent strategy: Make regular monthly investments into either a variety of quality stocks or mutual funds. As prices keep falling, you'll keep buying in at cheaper and cheaper prices. When the market finally turns around, you'll have amassed an AVERAGE cost of investment that's about as low as you can get without taking on the considerable risk of trying to call the bottom.
Also, if needed, you can borrow up to half of "your" money anytime you want, but you have to pay it back to avoid having to pay income tax on it, and usually some kind of early withdraw penalty. Also, it can be used as collateral with some banks and you don't even have to touch it. Well, that is if you don't default on your loan.
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- Mr. Beast
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That sounds sort of like what I've got at the day job. Ours is a Simple IRA. My employer matches 100% of what I put in (up to 3% of my wage). So naturally, I'm kicking the 3% in.
But I'm left to my own devices in regards to how that money is invested. I've tried my hand at picking individual stocks, but man, I just don't know enough about it. This thread has inspired me to read up on stocks and mutual funds and stuff, so I can put that money to work.
But I'm left to my own devices in regards to how that money is invested. I've tried my hand at picking individual stocks, but man, I just don't know enough about it. This thread has inspired me to read up on stocks and mutual funds and stuff, so I can put that money to work.
- Billy's Little Trip
- Odie
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I wanted to chime in on this. It is always good advice, but "saving your money" is going to just make things worse right now. Maybe not you, me or someone else in this thread, but the sectors that are doing well, need to spend...a lot.melvin wrote: Advice: Pay down your debts and save your money now, and get ready to buy things a lot cheaper in a year or two.
Example: Joe Blow is the sales rep for the company that sells the hospitals those cool machines that sterilize the doctor tools. They also do the required maintenance on the machines. He is having a good year with all of the stress related illnesses because of our fucked up economy, so the machines he sold are getting a major workout and they have to be serviced more often. Joe Blow hoards his money like crazy because he wants to be a rich man. He doesn't care right now, that he is single handedly crashing our economy. Joe Blow says, "good, as long as I'm doing ok, I don't care". The worse things get, the more stress related illness accrues. But Joe forgot one very important issue. People aren't making any money to pay their HMO's, etc. The hospitals can't pay Joe. Joe's companies maintenance program stops servicing their machines because the hospital owes them so much money. Joe's company has to cut back and Joe gets laid off. Now Joe gets stressed and has a heart attack. He needs emergency open heart surgery. All goes just fine and Joe is OK *shwew*. About a week later, Joe is not feeling well, at all! The doctor notices an infection has set in from the surgery. Apparently the staff have been keeping Joe's machines in working order, but they weren't trained to properly work on the machines. They do all they can, but the infection caused an inflammatory bowel disease and Joe dies.
Joe died a rich man.
Don't be like Joe. Spend your money and enjoy life to the fullest....while you can.
- Caravan Ray
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