start

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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