What are you doing with your money/savings/retirement?

[Big Ticket]

Want to keep this as rule abiding and unpolitical as possible... but during these times, what are you doing with your money?  No need to say how much money, just simply what your current strategy is as far as building/preserving wealth.  I am quite interested in the markets and finance so am interested on getting other point of views of these wonderful times we're experiencing.

[Chris]

I am buying season tickets to the World Champion Celtics.  From the little I know about economics, it is one of the safer investments out there right now.

[Schupac]

I'm fairly young, so not much.  I just signed up for stock options with my (huge multinational evil) company today, and they have been some of the only safe stocks around it seems.  Also signed up for a 401K.

What I'm NOT doing is putting into my 401K while accumulating credit card debt.  Had to give a friend of mine a 30 second financial lesson the other day:  Your 401K pays, at best, 5%.  Your credit card charges, at best, 15%.  CASH OUT THE 401K AND PAY OFF YOUR DEBT STUPID!

[Big Ticket]

I am buying season tickets to the World Champion Celtics.  From the little I know about economics, it is one of the safer investments out there right now.

Haha.. well keeping it in the economics realm... if the "utility" you gain from seeing 41+ Celtics games in person is greater than the cost of the tickets, then you are actually making a profit... disregarding the opportunity cost of the time spent at games, of course.

[Edgar]

I am constructing some houses to sell

yup I like to go against the flow
specially because that means poor offer for the little ones who qualify as shoppers


then i will pay my debts (hopefully) and then I plan to but a beach property in Utila and retire there age 60 tops, if i can convince my wife of course.

[Big Ticket]

I'm fairly young, so not much.  I just signed up for stock options with my (huge multinational evil) company today, and they have been some of the only safe stocks around it seems.  Also signed up for a 401K.

What I'm NOT doing is putting into my 401K while accumulating credit card debt.  Had to give a friend of mine a 30 second financial lesson the other day:  Your 401K pays, at best, 5%.  Your credit card charges, at best, 15%.  CASH OUT THE 401K AND PAY OFF YOUR DEBT STUPID!

Well... it is possible for a 401(k) to return 10.. 20... 50% depending on how it's allocated and how the market is doing.  Of course, mine is down about 25% since I started it on Aug. 15, 2007 (although it's actually "up" or even due to a 25% match from my employer).

Anyways, you are mostly correct.  I worked with a financial adviser while at school, and he said the first think he always does with clients is get them out of credit card debt.  Putting money into the bank to earn 0-3% interest is just going backwards with a credit card balance costing 15-25% per year.  Although you may not be completely correct... there is SOME merit in early 401(k) contributions because getting that money in young for tax-deferred growth is a tremendous way to ensure a comfy retirement.

[Donoghus]

I'm fairly young, so not much.  I just signed up for stock options with my (huge multinational evil) company today, and they have been some of the only safe stocks around it seems.  Also signed up for a 401K.

What I'm NOT doing is putting into my 401K while accumulating credit card debt.  Had to give a friend of mine a 30 second financial lesson the other day:  Your 401K pays, at best, 5%.  Your credit card charges, at best, 15%.  CASH OUT THE 401K AND PAY OFF YOUR DEBT STUPID!

Obviously, you want to keep the credit card debt as low as possible or at least under control.  However, considering the implications of early withdrawals from the 401(k), you do not want to caah out that 401(k) if you have other avenues to pay off the credit card debt such as savings or investments (depending on time held and other circumstances). IMO, cashing out the 401(k), should be last resort.

Also, the return on a 401(k) is going to vary greatly depending on what sort of investment strategy/asset allocation methold you have going.

[Yakmanev]

If your young the best thing you can do right now is buy into the stock market while stocks are cheap and then ride it back up.

Example General Motors is at $6.50 somewhere thereabouts just 12 months ago it was around $40 something.

There is allot of good opportunity right now if you just get creative and play wisely.

Remember, you never lose unless you panic and sell, it always comes back.

Now if you are older and closer to retirement you might go ahead and cash in and retire but young people should buy as much as possible. Especially these bigger companies like Ford, GM, General Electric that can be had a bargain prices.

[Neurotic Guy]

Want to keep this as rule abiding and unpolitical as possible... but during these times, what are you doing with your money?  No need to say how much money, just simply what your current strategy is as far as building/preserving wealth.  I am quite interested in the markets and finance so am interested on getting other point of views of these wonderful times we're experiencing.

I am a financial idiot -- but I know that, so I am very conservative with my money.  My mortgage payments are within our means (though it is high enough to be an area of financial worry -- I continue to put off purchasing disability insurance which I should have for peace of mind). Our IRA is managed by a financial planner who generally gains us >10% and has minimized the unavoidable losses in the past year or so -- down about 18%.   Kids college funds have taken a hit but are also conservatively held (about to dig in next year).  Have only one credit card (jointly with wife) and pay it off every month. Also have no car payments as I don't buy new cars until I can afford them.  We live within our means -- only extravagance is calling out for dinner more than we should and I never pack a lunch (always eat on the road).

So, not much good advice here other than keep it simple, live within your means, don't pay CC interest, put money with a trusted and experienced planner, and for the time being trust that the market will recover (let the $$ sit where it is).

[Yakmanev]

Want to keep this as rule abiding and unpolitical as possible... but during these times, what are you doing with your money?  No need to say how much money, just simply what your current strategy is as far as building/preserving wealth.  I am quite interested in the markets and finance so am interested on getting other point of views of these wonderful times we're experiencing.

I am a financial idiot -- but I know that, so I am very conservative with my money.  My mortgage payments are within our means (though it is high enough to be an area of financial worry -- I continue to put off purchasing disability insurance which I should have for peace of mind). Our IRA is managed by a financial planner who generally gains us >10% and has minimized the unavoidable losses in the past year or so -- down about 18%.   Kids college funds have taken a hit but are also conservatively held (about to dig in next year).  Have only one credit card (jointly with wife) and pay it off every month. Also have no car payments as I don't buy new cars until I can afford them.  We live within our means -- only extravagance is calling out for dinner more than we should and I never pack a lunch (always eat on the road).

So, not much good advice here other than keep it simple, live within your means, don't pay CC interest, put money with a trusted and experienced planner, and for the time being trust that the market will recover (let the $$ sit where it is).

Very good advice and you sound like you are very financially intelligent contrary to what you gave yourself credit for.

So many people try to live outside there means and it comes back to bite them.

[Big Ticket]

Want to keep this as rule abiding and unpolitical as possible... but during these times, what are you doing with your money?  No need to say how much money, just simply what your current strategy is as far as building/preserving wealth.  I am quite interested in the markets and finance so am interested on getting other point of views of these wonderful times we're experiencing.

So, not much good advice here other than keep it simple, live within your means, don't pay CC interest, put money with a trusted and experienced planner, and for the time being trust that the market will recover (let the $$ sit where it is).

Well now, I'd have to disagree... that is actually some terrific advice that a good amount of people would do well to follow.  I believe I heard the aggregate consumer credit card debt in America is $2.1 trillion right now?  That is $2.1 trillion dollars floating around the financial system that doesn't actually exist.  And those affects haven't even hit the current market turmoil yet.  Yikes.

[yall hate]

under 100k cash, put it in a trustworthy bank account as that is federally insured.

If you wont need the money soon, some longer term CD's will return a guarenteed % (although not a lot, and you must leave it in for the term)

If you have the cash to play around with, buy stocks.  everything is down. normally strong stocks are at 52 week lows.  they will come back, there is no doubt about it.  buy now while it is low, and reap the benefit down the road when they go back up.  This is what Warren Buffet is doing, because it is simply a smart strategy if you have the ability to put money into the market.

Edit: and if you have stocks right now, please dont sell.  That is the worst possible thing you could do as you are selling at the lowest point.

[Big Ticket]

I should add that I just opened my first brokerage account and am making my own stock picks... currently 5 of them, a couple big name blue chippers and 3 not so big.  I'm investing as much as I can... also deferring 10% of pay into a stock purchase plan for my company stock (which last year USA Today named the #1 stock to own for the past 25 years... down a good $70 since then though, d'oh!) and 8% of pay into my 401(k).  I have a decent amount in savings for a 23 year old but am using it to buy a new car soon I hope.

Echo some other advice... it is the time to buy stocks now if you have the stomach for it.  Buffet is putting 100% of his personal wealth back into stocks and John Templeton always said "trouble is opportunity". 

[BballTim]

  Isn't the current answer to "What are you doing with your money/savings/retirement?"    "watching it disappear"?

[warriorspirit]

I have been a self study of money, the rich, and credit for over 10 years so this is right up my alley...

First step (like said above) is to get ride of all your "bad debt" Credit cards, store cards, ect...

Step 2. Max out your 401K. and put it all into a combo of stock funds (international, small cap, big cap, Reits) the bigger the swings the better. unless your within 5 years of retirement then start moving some $ to more stable stuff...bonds or the like... the reason is your 401k the way it is set up uses something call "dollar cost averaging" by default. Infact your 401k really "makes" money when the market is down. right now people are making big money (if they are investing in the stock ones and havent changed or sold anything) they just don't see it... the rule to D.C.A. is put the same amount in at the same time period. here is why it works

say you put $100 a week into an account

week one shares are $10 that would give you 10 shares
week 2 they are $20 that would give you 5 shares
week 3 they drop to $5 that would give you 20 shares
week 4 they go back to $10 giving you 10 more...
Now add it up
you have 45 shares at $10 each for $450 which is +$50 even know the shares are the same as when you started.
So be happy with your 401k (don't move money or sell anything!!!) unless your within 3 years to retirement.

now after that you set up a % of your money to be taken out of you pay each week and gets invested (say 10%) this is on top of your 401k... then you set up two "accounts" one is the "safe" bucket (this would be CD's, Money market funds, ect) the second would be a "growth" bucket (stocks, reits, options, ect.) now the younger you are the more you should put in the growth bucket (say 80-20 or 60-40) what ever you want. now at the end of the year if the growth bucket has made $ you take it out and split it into 3rds... first one goes back into the growth bucket (this uses compounding which is an amazing tool to grow $$$) the 2nd one goes into the "safe" bucket (this protects some of your "winnings") the 3rd one goes into a new account called the "fun" bucket. this is $$$ you just blow on fun stuff because if all you do is save and don't have any fun what's the point. Set up this system and never skip a week or it won't work.

Next take a hard look at what you spend your Money on and cut cost where you can.

Don't freak out when markets move. they always do. the rich are rich because they know what they are doing. right now is a great time to buy. (I would stay away from single stocks unless you really know what you are doing)

and last if you have time and are will to put in some work look into "tax lean certificates" greta place to put money but you need to do your homework to get the right ones...