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Or you can now use TapaTalk again!Market Talk
- Thread starter Spaf
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Show-me
TSP Legend
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Saving
Saving means putting some of your money away for emergencies or a short-term goal. All banks have savings account plans where your money will earn interest and be safe.
Check to be sure that the savings plan you choose:
- Allows you to withdraw money whenever you think you'll need it
- Does not charge you for withdrawing money
Investing means putting your money where it can make more money for you by earning interest. The more interest paid, the greater the risk or the longer period of investing. Here are some comparisons of different investment types and the interest they pay:
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Show-me
TSP Legend
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http://muextension.missouri.edu/explore/hesguide/famecon/gh3520.htm
[size=[url=http://www.thebeehive.org/Templates/Money/Level3Image.aspx?PageId=1.194.268.279.282]http://www.thebeehive.org/Templates/Money/Level3Image.aspx?PageId=1.194.268.279.282[/url]][/size][/b]
[size=[/b]
http://www.fool.co.uk/lrninvnov/startinvesting.htm][/size][/b]
[size=[/b]
A few links about saving vs. investing.][/size][/b]
[/b]GGuest
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imported post
rondalw wrote:
Wages are not even keeping up with inflation let alone housing prices.
Thee plane, thee plane boss.
Mike
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imported post
My point - which may have been missed - and apparently was by at least one poster - is that to claim the savings rate is ZERO is a ridiculous assertion that leads people to believe that on average, we all have *nothing* set aside, anywhere.
Investing is a form of savings - you aren't spending the money on day-to-day needs/whims. It's in the form of an asset that you can sell at any time for any reason. Housing equity is a bit more complex but very similar - it's a resource that you can tap if you have to.
Why anyone would want to set aside vast amounts of wealth and place it into an account that earns next to nothing is beyond my comprehension. You need 6 months' income in an emergency account at most.
Mike
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http://www.webster.com/cgi-bin/dictionary?book=Dictionary&va=savings
Savings - noun - 3 b) the excess of income over consumption expenditures
According to this, it naturally follows that if you don't see investment as a form of saving, then youmust view investment as a form of consuming. I doubt very many economists would tie those two together.
I think we're getting bogged down in semantics here. While investments aren't ideal for *emergency savings*, that doesn't change the fact that they are a form of savings - unless of course, you happen to think an investment = consumption.
Re: social security - all this is effectively doing is allowing senior citizens (who have more wealth than those of us working) to get by without having to sell any of their assets.
Re: your questions as to how easily assets can be converted into cash, that has nothing to do with whether something is a form of savings or not and has everything to do with its liquidity... which is a different subject (see below).
Housing/real estate = not that liquid - it takes time to tap into equity / sell the property. In the latter case, the average - assuming someone wants to buy - can be over 50 days. Refi's can also take a long time to tap into home equity.
TSP - I don't know how long it takes to get a loan from this - it's probably faster than what you would go through with a mortgage, but it certainly wouldn't be at the head of the line as far as timeliness is concerned.
Roth IRA - how quickly you can tap into this probably depends on where you have the account. I could withdraw from mine pretty quickly if I had to - and penalty free as long as it was the invested amount / not the capital gains.
Moneymarket/standard bank savings account - can be tapped into instantly, which makes these the methods of choice for emergency reserves.
The long and short of it is: I think we're splitting hairs here.
My emergency reserves (current): ~2 weeks' income in money market account, ~11 weeks' income in Roth IRA, and a ~2 week buffer in my regular ol' checking account that I use for paying bills and other things. Total: ~15 weeks or a little under 4 months' worth. Considering I've only been working a little more than 2 1/2 years and have been setting aside the TSP maximum after my first six months, I'd say I'm doing pretty good.GGuest
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Mike wrote:
Yeah, you're doingI'd say I'm doing pretty good.
TTSP_Elvis
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Looks like the NYSE is about the only index with a nice gain yesterday. This tells me the bulls and bears are fighting it out with institutional money being the bulls. Who'll win? Looks like a tight trading range until someone gives. If the institutions give in, look for a big drop quickly.
Keep an eye on the NYSE is my opinion.
E
teknobucks
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coolhand wrote:
gotta couple chip detector lights in the cockpit...making a precautionary landingingolf LZHey, are we gonna make into orbit this time?
(I took the bulb out of that red flashing oil sensor...it was annoying me...looks okay now)...LOL
77 g
9 c
7i
7s
tekno
Show-me
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Mike wrote:
Outstanding job Mike! Now all you need is a good woman and a house full of kids!The long and short of it is: I think we're splitting hairs here.
My emergency reserves (current): ~2 weeks' income in money market account, ~11 weeks' income in Roth IRA, and a ~2 week buffer in my regular ol' checking account that I use for paying bills and other things. Total: ~15 weeks or a little under 4 months' worth. Considering I've only been working a little more than 2 1/2 years and have been setting aside the TSP maximum after my first six months, I'd say I'm doing pretty good.
Mike
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I don't think I want children.
I'm working on the outstanding woman part, though (this is why my ability to analyze the market has gone south lately - my mind is focused on other things :shock
. :^
Edit: look at that I fund... it's kicking sand in my face now.
Show-me
TSP Legend
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Mike,
It can pull the rug out from under you when you least expect it also. I am trying to hold my position in the I fund longer on good days because it seem that there is a lag in the “daily valuation“. Their attempt to stop “timing” perhaps. I have notice this on several really good days for the I fund. People pull out and then the that days share price does not reflect the days action. Then a day or two later the I fund will get a big jump like yesterday.
Good luck on everything!:^
Spaf
Honorary Hall of Fame Member
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Savings.....Savings.....Savings
Take a look see at www.capitalone.com and check out their savings program. For your quick money they give a better rate than a bank. Spafimported post
Short term, I believe that oil does have a negative impact on the market. Long term however, the impact is not as great. Many smart money investors start investing in energy stocks. One that I own is San Juan Trust (SJT). This one is the jewel in my portfolio. I bought it at $19/share. I also have Torch energy (TRU). But this on has'nt performed nearly as well.Similar threads
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