Stop buying!

So someone called into a talk show and was wondering if he should decrease the amount he puts into his 401k. The financial adviser asks why... "Well, the market has been going down lately, so I don't really know if I should risk losing more money."

HELLO!!! Ever heard of the term, buy LOW sell HIGH?!?!?!?! This is the time you should be buying MORE, if anything. Don't let the media discourage you. This is one spending habit that you should always keep.


When someone loses their home because they can no longer afford it, both parties lose. The residents obviously lose their house. The banks lose money by having to sell the house at the lowest price, just to get the darn thing off their hands.

Yet there are these small guys in the corner waiting....they are the bankruptcy lawyers. They are raking in the dough big time, from drafting up the bankruptcy filing to representing banks in court, they are cashing in on other people's hardship.

"I ain't guilty cause, even though I sell rocks.
It feels good, putting money in your mailbox" 2pac

Hank Henry H.L.P. Paulson, Jr., III

Thats the name of the Treasury Secretary of the US. What the f*** is that? This dude basically looks to work side by side with the president to oversee the financial world in the US and make sure everything is cool, among many, many other things. Just type the guy into wiki or something to know what he really does.

Anyway, he proposed today that he wants the government to have more power. The first thing he wants to do is combine different groups that regulate markets into one body. The next thing he wants is for the gov't to be able to have access to a lot of information when you take out a mortgage. Among other things, they need to know if you own a golden retriever or a pitbull in your front yard. Its essential that they know.


THE GOVERNMENT KNOWS BEST guys......

Where are you?

So theres some new technology that was announced today for cell phones. Basically, new phones from Verizon and Sprint will allow you to see where your friends are on a map so you can have an easier time meeting up with people...privacy, anyone?

"They" said that you can turn the feature off whenever you want, and they are initially not going to charge for the service...how nice of them.

Hey...have you signed up for that IRA yet? Still no, huh? Hopefully you get that taken care of next week.

Senile Guys

So I've got a lot of comments about people being old and rich--as a response to my first post. I guess I was jumping the gun on that one. You see, social security (that big ass deduction on everyones' paycheck) will not be able to help people anymore when we get that old, so basically, when you stop working, you better hope that someone will help you, because the government wont. This is important part-- stock as much money as you can in your ROTH IRA. Why ROTH? Well, because you do not get penalized when you take that money out to pay for things like 10% of your down payment for your first house, an emergency medical bill, or higher education.

If you invest in the stock market and make money, the government taxes you. And if you VOTE FOR OBAMA, you will be taxed HIGHER. So DONT VOTE FOR HIM lol jk. You can vote for him. Anyway, these guys (democrats) are looking to increase capital gains tax, and so when you have a ROTH IRA, you do not PAY those taxes when you take out your money for the purposes I mentioned above. But then again, for every other excuse, like taking money out to buy an iphone, you WILL get taxed. And money doubles about every 6 years in the stock market, considering a return of %12 a year... Id love to hear someone tell me not to save money. I dare you!

Economy posted .6% growth

So at 8:30am today, the report for GDP growth came out- .06%. This was recorded for the period from October to December. What does that mean? Well, considering that growth in the prior quarter was 4.9%, it can be easily seen that the machine that is our economy is slowing down. Now, if for some reason, the next GDP report comes out less than .06%, we are in a recession right? Wrong. A recession is only official when a group of economists somewhere say that we were in a recession. They analyze GDP, unemployment, inflation, and a whole bunch of other things; they are a secret society that everyone looks to. Unfortunately, they say things like, "so in March 2008 we were in a recession, but it ended March 31st." --The news comes after the fact. So what should one do? Nothing. Well, maybe play more xbox and watch March Madness. I think a couple of games are on tonight....in HD. Hopefully Memphis wins it all, but since they suck at freethrows, my bracket is ruined and North Carolina will win......

GOOOLD

I just heard something on the radio about gold, so I might as well shut people up. Sure, in the last 2 years, the damn thing has skyrocketed, from $500 to $1,000. But Apple went from $60 to $180 in just one year. What is the difference? For one thing, gold is one of the worst INVESTMENTS ever! Thats right... If you were to invest in $1 in gold 50 years ago, you would have 97 cents today. Now if you were to invest $10 in Apple 50 years ago, you wouldn't be reading this, you would be in one of your four mansions.....

Also, to better explain what to do with the previous post, try looking into target retirement funds. Companies offer funds called Target retirement 2050...i.e. you just keep throwing money in there until the year 2050. It does what every individual ought to do, 100% of the money in stocks for the majority of the time, but when you get older, it slowly transfers into bonds. Yeah, these mutual funds do all the work, except the work it takes to put the money in there...thats for the customer to do. 

To start

Anything in the news today? Not really. So I might as well mention
something pretty important. If you are less than 25 and you put away
$200 a month into a mutual fund, not considering you will ever
increase that amount, you will be almost certain to have a million
bucks by age 65! And since you won't be stupid, you will probably
contribute more-- the older you get, the more money you make, the more
you stock away. It is probably best that you start and no nothing
about finance. The more you know, the more you can mess up. Just let
it come straight out of your account, no questions asked, and when you
get older, you will have more than enough to buy a shiny new ferarri!
Or something more responsible of course...

Have questions? Just ask.
P.s I am not authorized legally to give financial advice, so take this
as a small guide to get you familiar