Saving Self/Tanking Market
April 11, 2008 by Tracee Sioux
Filed under Parenting
I took a major action step to Save Myself. It wasn’t easy, there were a few fights and one angry letter to Suze Orman over my using $50, of our already very tight budget, to Save My Self by opening a TD Ameritrade Account.
Rewind: Suze Orman had a Save Yourself Plan in her book Women & Money. Women who signed up for a TD Ameritrade Investment Account before March 2008 and automatically save $50 a month for one year will be given a free $100.
So far I’ve saved $100. But, I don’t know what to do with it. The market is tanking and it’s giving me ambivalent feelings about my ability to make a decision. I’m afraid of making “the wrong one.”
Our investment decision are always surface and ambivalent to begin with.
Did you see Suze rip that couple a new one on Oprah? Do you know how this investment did over the last 10 years? Do you know how much you’re spending on servicing this mutual fund? And a whole bunch of other questions I didn’t really follow. Then don’t tell me you have a good mutual fund because you don’t even know what kind of mutual fund you have! she scolded.
The pressure is causing paralysis of indecision. Have you ever looked at a prospectus?
Prior to my husband working at a chicken company I would have thought chicken was as sound an investment as you could get – everybody eats chicken. (except those with an inexplicable love affair with the soy bean). But even that stock is tanking because of . . . wait for it . . . oil.
The seemingly innocuous development of ethanol – with 1/3 of the United States corn crop – is driving up the price of chicken feed and it’s causing unprecedented worldwide food inflation.
Do you have a crystal ball that explains the safe investment which will quickly grow? Can I borrow it? (P.S. Stockpile chicken.)
I know what you mean. We hold Kroger stock because we thought “well, everyone needs food, right?” but this economy is getting scary. I guess you just need to make a decision and ride it out. It’s the length of time (compound interest) that’s gonna make you wealthy not the specific choice.
Sometimes I feel like we’re on the cusp of something really big – like the “Great Depression”, maybe not that severe, but significant enough to radically change the way of life for many people.. It’s a little scary, but then I remember I’m in the category my grandparents were in “we were so poor we didn’t notice” and I can sleep at night. Wow – security in poverty.. wonder what Suze thinks about that.?
I imagine that she probably thinks your 100% right.
There seem to be only one type of financial security and that is the one that is not over-extended with extra debt. If you’re living within your means and haven’t financed everything you own then you’ll probably be OK. (Probaby also because you’re not identified with stuff.)
Oddly, I too am feeling more on the secure side of the economy. There is really something to the idea that I ALREADY learned my lessons the hard way.
Some people get rich during the bad times – I aim to figure out how to do that!
Right on.
I can picture it now, we can drive through the deserted streets in our town cars while that collector (who got so mean with me that time about my student loan) beggs for pennies and I splash him with mud..
Okay, sorry – your fantasy might not be nearly as vengence filled as mine.
On the serious side – maybe it would be smart to invest in something people actually need to survive.. I have a feeling every type of company that caters to the Jones’ is going to feel the crunch.
With that logic I was going with chicken.
What would Dave Ramsey say to do with it?
The best way to protect yourself from the ups and downs of the market is to diversify your investments. This is a respected principle of sound investment strategy.
You should read a book on investing. I read The First Book of Investing years ago when my ex and I got our first mutual fund (although I later lost the guy and the fund) It was invaluable and I learned a great deal.
Now I just wish I had some money to invest.
You’re right Violet, Dave and Suze both say the same thing – diversify .
I guess I felt silly diversifying $50. But, that’s my mistake because next year it will be $700 and definitely that needs to be diversified.
Also Crystal’s comment made me realize this save myself fund is for the long haul – an insurance policy against divorce or widowhood or being trapped by economic dependence – so who cares if the market temporarily tanks?
In the back of my mind, I think I was open to the possibility of a girls’ weekend in Jamaica or using it to relocate again (which is where the 401K savings from before my economic dependence went). But, that’s a mistake equal to not saving at all.