I'm proud to have kept my money out of the stock market

[bluestateguy]

I have never had anything but contempt for the Wall Street Casino. I kept my money out of there when the Dow was at 13,000, and I keep my money out of there now.

There is a lot to be said for the good old fashioned regular bank account (or the safe deposit vault at home).

[HaydukesWrench]

1. at least Vegas gives you free drinks when you gamble

[southern_dem]

2. Me too

Although, it's mainly because I live month-to-month, lol. I can't afford to invest in the market. I do have my little savings account though. :) After this, I think I'll just stick with savings and maybe CDs.

[Skinner]

3. If you need the money now -- or sometime in the next few years -- you have made a wise decision.

But if you won't need the money for another twenty or thirty years, the stock market will likely do better than your bank account or the safe in your home.

[dixiegrrrrl]

16. I respectfully disagree.

Here's why...

Pretending for a minute that the current meltdown is just a "normal" recession...

we have had cycles of stock market boom and bust about every 10 years.

My 401 K invested in the market in 1990 got built up, then lost money in the 1999 bust.
It took about 8 years to REGAIN that loss, just in time for the 2008 meltdown.
So for 10 years I made little in profit, yet will be taxed on what I take out.
And lost to inflation.
Our retirement annuity invested in AIG got a nice 4% every single year for 10 years.
If the annuity is not yet due until 2010, or later, what are the chances AIG will be around to pay if off?

The only thing that made any money for us was a 5 K Roth invested in a REIT fund for 5 years and taken out in 2007, and the sale of a house.

The choice is stuffing money in a mattress over 10 years and hoping inflation does not eat it up, or putting money in the stock market and hoping the boom and bust cycle , plus the inflation factor, plus taxes, does not prevent earning any gains.

The cycle of boom and bust has been going on in this country for hundreds of years.
It is averaging around 10 years.

The average Joe does not have the means or knowledge to play the stock market game, and we have just discovered, via recent news, the market has been rigged 10 ways from Sunday for many years.

[Pale Blue Dot]

20. Why do you assume that's true?

"Because that's what's always happened before" is not a real answer. Why did it happen before? Are those same things able to happen again? What is the event that you foresee that will put stocks out of a downward spiral?

People keep referring to the "cyclical" nature of stocks as if it's an unbending law. It's not. One need only look at many, many examples around the world to realize this.

[tammywammy]

23. That's why I'm still putting money in each week.

I'm not retiring for another 40 years.

[stray cat]

4. No retirement plan related to work?

[bluestateguy]

5. Not in the stock market, no

I do the old fashioned thing: I save a little every month.

[stray cat]

9. How much do you manage to put away - I've done the same

and am still short of even 1 years salary

[Kalyke]

6. People have retirement plans tied to work in this day and age?

Other than 401Ks (stock market), only a handful of employers provide anything.

401Ks are the rich's way to lure the middle class's money into the stock market so they can steal it - like they're doing now.

[stray cat]

10. I have a 401k and its related to work - my employer puts in 6%

and then its whatever I put it. I'll never make enough to retire ie 10 years salary minimum.

[Phoebe Loosinhouse]

12. Exactly right. 401Ks were the vehicle that made most of America "investors".

Ha! So that unlimited dollars were flowing to the private coffers where it could be carted off to the counting houses of the looting executive class and the Wall Street Barons. You, Mr and Mrs Joe Shit Saving for Your Retirement - you get bubkus! A zillion dollars that SHOULD have been returned to you in the form of dividends and re-investment was stolen.

NO ONE was looking out for you. The politicians and the regulators all knew what was happening and they did nothing to stop it.

[Lance_Boyle]

18. most if not all 401Ks have money market options - better to use that

and get tax benefits and matching. Stock investing is NOT a requirement of most 401K plans.

[NoPasaran]

7. I always knew my sack of magic beans was a wiser investment

[conspirator]

8. In a bank it's not much better. Both US and UK currencies are becoming toilet paper

The printers have been working non stop and inflation is screwing the middle class in their savings.

[seabeyond]

11. i tried. hubby working for co. in oct 2007 with 401k and sucked HUBBY in, not me, lollol

otherwise i have been able to keep all our other money in cd and giving the 401k money to hubby as HIS loss. wink

[stray cat]

13. How do people manage to put away 10 years worth of salary for retirement

by simply saving some money each month and putting it in a bank? I must be doing something wrong....

[seabeyond]

15. i am really really frugal. i hate spending money, hate living paycheck to paycheck even more, BUT

thru out our 15 yrs things have come our way...

sold my house before married and made 15k. hubby got a 10k bonus. sold his business and made a good chunk of money. really good chunk. he sold at the perfect time.

IF it was just saving, which is what the 401k's were to help with.... then it wouldnt happen. unless being paid a huge amount per paycheck, much more than what hubby earns and he has a masters so not about education, then i dont think you can today. which is one of the very worst with our society today. they could decades ago.

[panader0]

14. Me too, because I have no money.

[Fresh_Start]

17. do you work for a privately held company?

if not, you may be celebrating too early

[elocs]

19. There is nothing wrong with being proud of not supporting greedy Wall St. companies,

but there are a lot of good companies out there who support social causes and have a good philosophy and have genuine flesh and blood people who work for them and who are trying to make a living. So there are good companies in the stock market who certainly deserve support and who merit investment.

I am in the stock market with what little I have, but I am proud not to be greedy. I am proud to be responsible with my investments. I am also proud that I don't make blanket indictments and throw the baby out with the bathwater.

Your statement reminds me of how in history people have gotten into trouble for reading the wrong books only to hear the retort, "I'm proud I' ignorant ". Or if a house burns down from an electrical fire, "I'm proud I never had my house electrified". Or if someone's house gets washed away in a flood (oops! there goes that "safe" deposit vault at home), "I'm proud I never built my house where it ever floods". I don't think I'd be proud of that kind of ignorance.

[L0oniX]

21. Same here. I have been using CD's and bank money markets for the last 4 years.

4 years ago my FDIC money market was paying 5.25%. 3 years ago it sank so I went with FDIC bank CD's @ 4.75%. 2 years ago it was down to 4.25% so I went with that. Then last year it was at 3.75% so being that it was the best I could find in my area I went with that. I am happy that I did what I did. Never had any confidence in hedge funds since I saw a friend of mine lose 40k by doing that and Wall Street always seemed like a gamble too. 401k's ... a suckers game. My wife cashed out of her 401k just in time. I did invest in some gold coins as a backup and they have been worth it so far.

[Johonny]

22. In general you have to invest in something

Sure you could keep your money hidden in your house. But then you would be wise to invest in insurance since one bad day and all your money is gone. The return on money hidden in your sock drawer is very poor. Placing it in the bank has less risk. Banks are already suppose to be insured. But the yield can be less than exciting. Other investments offer the potential for better return. In general these have more inherent risk. The question is always how much risk should you take? There is nothing wrong with keeping some cash on hand, many in safe bank accounts and keeping some percentage in things like the stock market. In general the stock market is not the same as gambling. Nor is your money likely to be stolen (although it happens). In all a good financial planner will tell you to mix your investments and to invest differently depending on you risk tolerance, age and goals.