Investments/Saving?

[reptile411]

I would definitely stay out of the Stock market with all which concerns my pension. I personally saw my neighbor grinding his money to smithereens when the great fall happened last august.

I know people are saying that it’s now an up market, but one should only put there “fun money”.

I watched my stocks loose %60 and my 401K lose about 40% before I jumped on it to stop the losses. Now my 401K is only down about 6% now and my stocks only about 10% so I know exactly what the downfall of the market has done which is why I dump all my money into savings with the exception of my JNJ investment which I am still contributing to.

[reptile411]

I think you'll find that the vast majority of folks here and elsewhere disagree with you. The stock market is a long-term investment. It is for money that you won't need for 10, 20, 30 years. It is not the place to put your house downpayment or your new car fund or your teen's college money, but you will likely never be able to afford retirement without investing in the market unless you have a great and solid pension plan.

I agree and disagree. I have many long term investments but also at the same time with all the market volatility we have seen I have been day trading a lot up until recently when the market started coming back up and I have made out fairly well in the short term but this is just fun money. The real investments are there for the long term.

[tmvijai]

So, then, what seems to be the problem? I think it's a matter of perception, and I think it's unfortunate. So, perception aside, we are indeed investing. That's the honest truth. It's just not how we end users typically look at it....

But anyways, this really isn't a big deal, so I won't harp on it anymore after this.

Hey BK, I am still not in agreement that its a true investment vehicle to spread the wrong impression to others. It is a place holder for money. I understand bank is going to use your money and loan it back. Thats their business and its economic cycle. Thats how it works. As you agreed, its the liquidity and risk factor which differentiates them. You have to draw a line and these factors help you to draw it. Thats all. I rest my case.

It all the matter perception.. changes all the time depending on people.

[disneysteve]

Hey BK, I am still not in agreement that its a true investment vehicle

If it pays interest, it is an investment. It may or may not be a very good one and it may or may not be an appropriate place to put your money depending on your situation, but it is an investment.

[Goldy1]

The problem is that you don't always know when you will need the cash. Will it be 5 years or 10 years? Well how is my roof going to hold up? WEll, is a pink slip around te way? You don't quite know. You have to plan for a job hunt taking longer etc. and if ytou are really cautious, you willl need a lot of liquid cash.
I moved some money into my roth and keep it in something like a money market fund so I don't have to pay taxes on the interest which I did in the bank. I could only put the max allowed though which was only a fraction of my account. I want the money out of stocks in case I need it, but I probably won't need it soon so it is there tax deferred for now.

[Alex_Adviser]

Savings and investment both are means of achieving financial security for the present as well as for the future. The difference between savings and investment is caused by the factor of risk. In savings, the risk factor is almost absent but in investment the risk factor is always involved with the money.

Savings can be termed as money that is saved through a bank or any other financial organization that provides the facility. This savings is done for a long period but the growth rate of money is very low. On the other hand, investment provides the growth opportunity to the money.