40% Have Less that $500

[thegreekdog]

Keeping money in a savings account is a fools errand. You're losing money.

This is how Bernie Madoff started Woodruff. Careful.

HAVE I GOT A DEAL FOR YOU!!!!!

I'm not making excuses for Madoff by any means, but when your clients are saying "I want a higher return!" all the time, it's probably pretty easy convince yourself to do some fake shit.

[Woodruff]

Keeping money in a savings account is a fools errand. You're losing money.

If you put your money under a mattress you'll lose even more money than if you put it in a savings account.

Odd that you would believe that's the only other option...

[thegreekdog]

Keeping money in a savings account is a fools errand. You're losing money.

If you put your money under a mattress you'll lose even more money than if you put it in a savings account.

Odd that you would believe that's the only other option...

What are the other options?

EDIT - Yes, this is a trap.

[Woodruff]

Keeping money in a savings account is a fools errand. You're losing money.

If you put your money under a mattress you'll lose even more money than if you put it in a savings account.

Odd that you would believe that's the only other option...

What are the other options?

EDIT - Yes, this is a trap.

Diversified investments are without question a form of savings.

[thegreekdog]

Keeping money in a savings account is a fools errand. You're losing money.

If you put your money under a mattress you'll lose even more money than if you put it in a savings account.

Odd that you would believe that's the only other option...

What are the other options?

EDIT - Yes, this is a trap.

Diversified investments are without question a form of savings.

Right - the article deals with all savings, including diversified investments. Now, maybe you were making a general statement about savings accounts, but I suspect you thought the article only dealt with savings accounts.

[Woodruff]

Keeping money in a savings account is a fools errand. You're losing money.

If you put your money under a mattress you'll lose even more money than if you put it in a savings account.

Odd that you would believe that's the only other option...

What are the other options?

EDIT - Yes, this is a trap.

Diversified investments are without question a form of savings.

Right - the article deals with all savings, including diversified investments. Now, maybe you were making a general statement about savings accounts, but I suspect you thought the article only dealt with savings accounts.

I didn't read the article at all, actually. I was simply following the discussion and it seemed to me that since the discussion had passed on 401k accounts as being relevant, that investments weren't being considered either.

[thegreekdog]

Okay.

I would note, however, that liquid investments with high yields are difficult to get. My wife and I met with a financial advisor a couple of years ago and indicated that we wanted to get a higher result while maintaining a conservative position and a "savings account nest egg." But the kicker was that we needed relatively quick access to funds in case we purchased a home. He was less than stellar in advising us and we kicked him to the curb.

It would be interesting to see what percentage of a paycheck people have in investments, savings, 401K.

[Woodruff]

Okay.

I would note, however, that liquid investments with high yields are difficult to get. My wife and I met with a financial advisor a couple of years ago and indicated that we wanted to get a higher result while maintaining a conservative position and a "savings account nest egg." But the kicker was that we needed relatively quick access to funds in case we purchased a home. He was less than stellar in advising us and we kicked him to the curb.

It would be interesting to see what percentage of a paycheck people have in investments, savings, 401K.

Ten percent, pay yourself first. Savings only for short-term things like an upcoming trip or some-such.

[thegreekdog]

Okay.

I would note, however, that liquid investments with high yields are difficult to get. My wife and I met with a financial advisor a couple of years ago and indicated that we wanted to get a higher result while maintaining a conservative position and a "savings account nest egg." But the kicker was that we needed relatively quick access to funds in case we purchased a home. He was less than stellar in advising us and we kicked him to the curb.

It would be interesting to see what percentage of a paycheck people have in investments, savings, 401K.

Ten percent, pay yourself first. Savings only for short-term things like an upcoming trip or some-such.

I'm at about 17% (12% 401K, 5% savings). I think my wife is around 8% (all 401K). We don't spend too much though... we're weird like that.

[Bones2484]

I'm at about 17% (12% 401K, 5% savings). I think my wife is around 8% (all 401K). We don't spend too much though... we're weird like that.

My wife and I are at 10% 401K (plus company matching) plus 14% savings.

I'm only pipping in because I saw your comment about "needing relatively quick access to funds in case we purchased a home". What did you eventually decide to do after kicking that adviser out? It's that "quick access" thing that seems to be a killer.

[Juan_Bottom]

I make around 20K a year, I have $1,600 in the bank, and I work 50+ hours a week.
I have no car, a 23 inch console television, maybe 110 books, 500 DVDs, nice clothes, camping equipment, an XBOX 360 & about 20 games, Panasonic Blu Ray DVD player, a lot of Disc Golf discs, a bed, an expensive shelf, an Android Phone,... but that's about it for what I own that has any value whatsoever. . . I once had a decent collection of construction and mechanic's tools, but the police stole them when they impounded my vehicle. So I don't hardly even have any tools. I also had to sell my Mobile Home. My mom's sick so I live with her and help her pay her bills (mortgage, Dr, utility) and such, but she can't work and she's not on the dole. I'm buried. But I don't have any debts or anything, outside of the phone bill - which is pay as you go. I also pay for our internet, but I'm not complaining. I like the Internet. And I like America.

But my point, gentlemen, ladies, is that I have no money and I have no flashy crap either. Let's stop blaming the poor and implying that they deserve to be poor.

[BigBallinStalin]

It is only a fool errand because you don't get shit back because interest rates are so low. Instead of the U.S. govment bailing out the bank, they could have increased interest rates on savings accounts and CDs, which would increase people to save money and place in saving account, which, in turn, GIVES BANKS MORE FUCKING MONEY(and us lil people too).

Please explain how the gov't actually would increased the interest rates paid to Savings Accounts.

QE2 and QE3 depress interest rates.

The Fed rabidly seeks to drop interest rates to induce people to invest (in riskier endeavors, which will lead to another bubble).

Foreign investors purchase US Securities, which decreases interest rates (on average).

[Crazyirishman]

Im still in college so I don't know if I am an exception or not to this rule. I have less than $500 in my accounts and feel like Im doing pretty good since I pay my own rent and car insurance, $520 and $100 respectively, while also paying the university the difference of whatever my financial aid doesn't cover. So I am essentially financially independent. I work 15 hours a week and made about 11k during the summer, but I used it all my money to pay off all my living expenses for the all foreseeable future. I feel like I make better financial decisions when my bank account is low so that is a good thing.

[thegreekdog]

I'm at about 17% (12% 401K, 5% savings). I think my wife is around 8% (all 401K). We don't spend too much though... we're weird like that.

My wife and I are at 10% 401K (plus company matching) plus 14% savings.

I'm only pipping in because I saw your comment about "needing relatively quick access to funds in case we purchased a home". What did you eventually decide to do after kicking that adviser out? It's that "quick access" thing that seems to be a killer.

We still just have savings (in addition to 401K). I own a few shares of a few different companies, but we haven't done anything else. We're going to meet with another financial advisor in about a year.

[Nobunaga]

I make around 20K a year, I have $1,600 in the bank, and I work 50+ hours a week.
I have no car, a 23 inch console television, maybe 110 books, 500 DVDs, nice clothes, camping equipment, an XBOX 360 & about 20 games, Panasonic Blu Ray DVD player, a lot of Disc Golf discs, a bed, an expensive shelf, an Android Phone,... but that's about it for what I own that has any value whatsoever. . . I once had a decent collection of construction and mechanic's tools, but the police stole them when they impounded my vehicle. So I don't hardly even have any tools. I also had to sell my Mobile Home. My mom's sick so I live with her and help her pay her bills (mortgage, Dr, utility) and such, but she can't work and she's not on the dole. I'm buried. But I don't have any debts or anything, outside of the phone bill - which is pay as you go. I also pay for our internet, but I'm not complaining. I like the Internet. And I like America.

But my point, gentlemen, ladies, is that I have no money and I have no flashy crap either. Let's stop blaming the poor and implying that they deserve to be poor.

... Who was saying the poor should be poorer?

... Anyway, you're a helluva person taking care of your mother like that.

...

[jonesthecurl]

Keeping money in a savings account is a fools errand. You're losing money.

If you put your money under a mattress you'll lose even more money than if you put it in a savings account.

Odd that you would believe that's the only other option...

What are the other options?

EDIT - Yes, this is a trap.

Buy tickets to see me. You'll laugh, you'll feel better. Optimism will spread, consumer confidence will increase, the economy will grow, and I'll get rich.
Please ignore all but the first 5 words.

[HapSmo19]

I wish I had 500 bucks. I'd buy a new couch. This sumbich is wore out!

[Ray Rider]

I can't believe so few people have $500 in their account! I mean, I'm going to college right now, paying my own way with no help from my parents, I'm not living at home, I've paid off my car & pay my own insurance, phone bill, etc; I don't make much over the summer months, but definitely have considerably more than $500 in savings. I can't say I'm a real spendthrift, either...I just don't spend on the big expensive toys.

And kudos to you, JB, for looking after your mother like that! I must say, though, 500 movies??! Seriously? I have maybe 20...

[72o]

Well, since more than 40% of the population either does not work or has income so low that they don't pay any federal taxes, I'd say that's not surprising.