economy = suck
#41
2 Props,3 Dildos,& 1 Cat
iTrader: (8)
Join Date: Jun 2005
Location: Fake Virginia
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Btw, when you put your money into a Roth, you allocate the funds to a Mutual Fund, or Hedge Fund and those have Fees. Thats what I am referring to when I said paying someone to play with your money. What would seem is a small percentage they charge, is actually a lot of money in the end.
managed mutual funds can lick my *****. 99 times out of 100 they underperform the market over the long term. and cost more. and dont pay dividends. You should really look into "no load" funds.
But it does matter. If the market is constantly going down, why would I want to put my money into it only to wait for it to recover? Id rather invest when the market is doing well, and is stable at least in the short term even though this is a long term investment.
I am not saying it isnt a great idea, its a fantastic idea. In fact I have a roth opened with Etrade along with my brokerage account. I was getting ready to put 4 grand into it until I started to think about the near term future.
I need my money to stay available to me over the next 5 years. If I put it in a roth I cant withdraw it for 5 years to buy a house, which carries no early withdrawal penalty.
I need my money to stay available to me over the next 5 years. If I put it in a roth I cant withdraw it for 5 years to buy a house, which carries no early withdrawal penalty.
I have my 401k tied to the market, if I could id take that money but free money is free money when the company matches.
Simple difference is this. Either A. You retain liquidity and pay tax on earnings or B. put the money away and have it available to you tax free in 50 years.
I want my money available to me all the time. I dont know whats going to happen in 50 years, locking my money up, in my mind is not the smartest thing to do today.
But please don't think that I am advocating against a Roth IRA, I think its a great thing to do if you have the disposable income to put into it. In fact if you have the money and you can do with it, then do it.
Just understand its not the same for everyone.
Simple difference is this. Either A. You retain liquidity and pay tax on earnings or B. put the money away and have it available to you tax free in 50 years.
I want my money available to me all the time. I dont know whats going to happen in 50 years, locking my money up, in my mind is not the smartest thing to do today.
But please don't think that I am advocating against a Roth IRA, I think its a great thing to do if you have the disposable income to put into it. In fact if you have the money and you can do with it, then do it.
Just understand its not the same for everyone.
I'm long in this market. The best part is that our annual profit sharing (which is dumped straight into our 401k) was posted just as the market was tanking. Basically a lot of cheap stock that I can wait for to come back up.
#42
As far as James Cayne, the man has been working there since 1969 and has been the CEO for the past 16 years. He now serves as a "non-executive chairman". So, after 40 years at the same company he is now getting paid just to hang around. Seems like a pretty sweet deal to me! Would you not take it when you are 70 (or however old he is)?
Anyway, the sub prime mess we now have is the same as the mess created in '99 by people being over leveraged in stocks. People will always been greedy and that greed will eventually bite them in the ***. The extreme over valuation in the housing market was caused by greed. The value on houses is still great (I know mine is worth more now than it was 5 years ago) but it just couldn't live up to the media driven frenzy we had for the past few years.
All I know is that with my meager single income household we have been able to pay for a house, have a huge nest egg in investments and owe no one anything. We have 3 paid for cars and $0 in debt. I actually took a loan out of my 401K (@ 9.5% tax deferred interest paid back to myself) before the market dropped to pay the last $50K of it off. I should have it paid back in the next year and then will be able to max out both my 401K and Roth accounts. My wife wants a Lava Orange '05 MSM so that may set us back a year on paying the "house" off but things still look pretty damn good from where I am sitting.
#44
y8s, I completely agree with everything you say. There is no debating anything you said because I agree.
Especially the no load funds, I really want to invest and outperform the market though, who doesnt. Right now its impossible because the market is in the *******, but at one time it was very doable.
Based on your reasoning, I see that saving for the long term is important for you. Wife, family, kids etc. I am 23, still trying to figure out what I wanna do. I have some time to figure it out for sure.
Especially the no load funds, I really want to invest and outperform the market though, who doesnt. Right now its impossible because the market is in the *******, but at one time it was very doable.
Based on your reasoning, I see that saving for the long term is important for you. Wife, family, kids etc. I am 23, still trying to figure out what I wanna do. I have some time to figure it out for sure.
#47
I'm my broker. I invest through USAA, and balance my principal with their precious medals fund. (Also have a bag o coins in a safety deposit box.) Monthly investing without penalties. Works out pretty good in the end. Only real stocks I play around with are penny stocks. Thats like playing the lotto though.
#55
Elite Member
iTrader: (2)
Join Date: Jan 2007
Location: Los Angeles, CA
Posts: 8,682
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That and CCs are also useful for buyer protection e.g., buying a clip from someone overseas and they send you a brick and a LOL@U email and then you call up CC company and protest charge and get your money back. Done tat several times. protest, not the brick.
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