Quote:
Originally Posted by disneysteve
This is all academic, of course, but you actually make a good point. An investment is something you do with the expectation of profit. That's exactly why I always say a house is not an investment. I didn't buy my house in order to make a profit. I bought it to have a place to live.
By the same logic, a savings account paying 1% before taxes really isn't an investment either. I don't put money in an account like that with the expectation of profit. I put it there for it to be safe and readily available as needed. For that matter, I put money in my checking account regularly and that pays no interest at all, so that is savings but certainly isn't an investment.
ETA: I forgot to address the last sentence I quoted. There is absolutely risk associated with a savings account. There is inflation risk, the risk that your money will fail to keep pace with inflation and thus give you a negative return in real dollars.
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I put money in saving and expect a return on my money. So according to your theory that makes it an investment, otherwise I would keep it all in my checking account but this is not really of a concern. I feel my money while giving me a nice profit is much much safer than in the market right now. Especially today good lord it was a bad day