Comments: It's the money, stupid.


Posted by kaygoe1 at August 5, 2004 09:19 AM

Nixon took us off the gold standard. Just thought I'd mention that :-)

Posted by Teresa at August 5, 2004 12:22 PM

Although we're not technically on a gold standard anymore, you can still trade you dollar bills for gold, so there's a default "gold standard" of sorts.

As for stocks, well, I agree that trying to outdo the market by picking individual stocks and doing lots of short-term trading is the fooliest of fools' games. However buying and holding long term in a market index mutual fund is great way to invest for retirement.

[waves around Finance degree for added credibility]

Posted by Harvey at August 5, 2004 02:14 PM

Kaygoe1: Thanks Dad. It's about time you left a comment. ;^)

Teresa: Thanks! I knew it was somewhere around that timeframe, but I was just too lazy to look it up.

Harvey: I've never actually looked into mutuals, but if you say they're allright, I'll believe you.

When I worked for an ISP, I wound up talking to a lot of "day traders" whenever we had an outage in South Florida. Every one of those people was "certifiable".

Posted by Johnny - Oh at August 5, 2004 02:44 PM

Well, you can chalk finances up to another thing husband's are good for. I hate business stuff. I take care of all our bills and our budget, but when it comes to stock market etc, HE does that. When he talks stock market, bonds, mutual funds, my eyes glaze over and I hear 'blah blah blah, money, blah blah blah..'.

Posted by boudicca at August 5, 2004 03:29 PM

OMG - day trading is for certifiable nuts!!! Harvey is absolutely right about the mutual funds - you invest a bit every month and let it ride... long term savings with better interest than a bank savings account. Most people with IRA's or 401K's have the money in mutual funds of some sort. You don't touch it until you're 65 then - unless you want huge penalties.

Over the years the market goes up and down, but basically it slowly goes up. That's how you make money - it's never fast and easy. (or only if you happen to be one of the happy people who win the big lottery)

Investing for your future is a good thing. You certainly don't want to be stuck depending on Social Security - it's worse than welfare, only enough to keep you just about starving to death for years...

Posted by Teresa at August 5, 2004 09:07 PM

Since I'm tossing out free advice, and Teresa mentioned 401k's, the first place to invest is in your employer's retirement plan. Two reasons: First, they usually match your contributions. Even if they only match $1 for every $10 you contribute, that's still like getting an automatic 10% return.

After you max out your contributions there, then consider a mutual fund. I recommend index funds simply because, although you'll never beat the market with them, you also never do WORSE, either. And since the market has an average annual return of 10%+, it's a pretty good place to put a long-term investment.

Posted by Harvey at August 6, 2004 11:56 AM
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