When to start investing your savings
Should We Invest Our Savings?
all right Pam's with us in Birmingham
hey Pam how are you I'm wonderful how
are you better than I deserve what's up
well my husband helped retire in about
five years we have a hundred thousand
dollars in savings we we don't offer
anything that haven't in years but that
money is just sitting there we do have
some in stock and so forth and for three
B yeah a hundred thousand just sitting
there how long has it been sitting there
we just built up to a hundred thousand
few months ago okay okay so your
questions are what my question is should
we invest that in the stock market
Ohan or some other place we need to put
it you know little little bit leery
about the stock market with the economy
like it is we back in 2008 like everyone
else we lost quite a bit no you didn't
if you stayed in yeah well yeah we
stayed in and it all came back unless
you bought the worst stocks on the
planet no it didn't come back okay you
bought the water stocks on the planet
because the market yeah the market was
fourteen thousand three two thousand
eight it was eighteen thousand until
just the other day yeah so it came back
where they came back and then some no
overall yeah Pam I'm gonna I want this
money to work for me I mean right now
let's kick back and a hammock sitting in
your savings account and I understand
you allow and you know some of it to be
there for an emergency fund but I I need
to put this money to work I mean you
guys have worked hard to earn it and now
it's just relaxing and so put it to work
get connect with an endorsed local
provider in your area talk with them
about the market talk with them about
your options your risk tolerance things
you can invest in Dave one of the things
she said to that that made the hairs on
the back of my neck stand up was
thoughts you know and if she's messing
around with single stocks then you know
that that is one of those things where
it's very volatile it goes up then it
goes down so talk with that ELP about
growth stock mutual funds talk with them
about your goal in your plan to retire
and then understand the investment
vehicles get this money out of the
hammock put it to work for you yeah
here's the thing if you put it in a good
growth stock mutual fund in 15 years
it's gonna be around six hundred
thousand bucks
if you don't it's gonna be around
110,000 so this is something like a five
hundred thousand dollar hammock the
Chris is describing this is a gold blind
hammock
it's babysitting this money I mean that
that's that's what's called opportunity
cost on their money when the money's not
working he's lost the opportunity for it
to work and sit down with a good
endorsed local provider and understand
the market once you understand the
cycles in the market when you see the
market drop like it is right now it
means you're a Kmart maybe the blue
lights on its own sale this is the time
to get in not the time to get out and
Dave I love that you brought up
opportunity cost because that's one of
the things I walk through at the retire
inspired event the opportunity cost of
debt when you have money going out to
pay a credit card debt or car loan now
that money can't go work for you and
can't grow up your five dollar bill
can't grow up into a 50 and so that is
something people need to look at and
really understand you're building the
credit card companies legacy or the car
companies legacy instead of you own when
you have a payment get that thing out of
your life so you can grow that money by
investing it yeah I mean I talked to a
guy one time years ago here on the radio
show and he had he had $300,000 in $100
bills in a coffee can buried in his
backyard and I'm like dude number one
that paper is gonna deteriorate and you
lose all the money that was gonna turn
into dust if number two when you die
they're not your friend kids are gonna
be back there with a dadgum metal
detector trying to find Papa stuff and
number three that 300,000 would turn
into 3 million in about two I blinks
were you to invest it so this coffee can
has cost you Millions with an S and
that's what opportunity cost is yes not
investing if you think you're protecting
it but inflation and taxes are kicking
your butt during that decade that you
didn't invest it and Dave that three
hundred thousand and ten years how much
is it worth what does it look like every
inflation goes up it looks more like
what 270 yeah exactly or less yeah cuz
you know you're losing money at that
four four-and-a-half percent right hey
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