![\"\"](\"http:\/\/www.heatherbarton.com\/wp-content\/uploads\/2011\/10\/Money.jpg\" "\\"Money\\"")
<\/a>I’m’ serious!\u00a0 Most of Middle America has their retirement set up in stocks…\u00a0 IRA’s, 401Ks, Pensions of any sort… they are all in the form of investments.\u00a0\u00a0 And who is handling our money, our investments?\u00a0\u00a0 Wall Street.\u00a0\u00a0 And I’m curious as to WHAT Wall Street would do is we suddenly pulled all our money out.<\/p>\nAnd used it to pay off the debt Middle America is struggling with.\u00a0 Used it to set up a CD cushion of cash for if\/when the recession becomes personal for them.\u00a0 Isn’t that what our grandparents did?\u00a0 (And for those of you younger than my 48 years…. your great grandparents! Haha)\u00a0\u00a0 They set up a savings account with the bank because it was paying 10% or more.\u00a0 It grew their money.\u00a0 Prior to that, they just kept it at home in a mattress!\u00a0 It didn’t grow there, but it also didn’t shrink down!!<\/p>\n
Savings accounts & CDs may be paying very little interest but they aren’t as volatile as stocks.\u00a0 Plus aren’t you paying upwards of 18% interest on those credit cards?\u00a0 Seriously!!\u00a0 Take a look at how much your money grows in a year in your savings\/pension\/IRA or whatever and THEN take a look at how much interest you are paying on your credit card debt.\u00a0 Are you coming out ahead?\u00a0 I know I sure as hell am not!<\/p>\n
Ask yourself….\u00a0 Can I use this money to better my life now?\u00a0\u00a0 Will that enable me to better my life in the future?<\/p>\n
The definition of wealth isn’t how much money you have but how much money flows into your bank account through no effort on your part.\u00a0 Are stocks doing that for you right now?\u00a0\u00a0 They sure are not for me.<\/p>\n
Example One:\u00a0\u00a0 My mothers has a large stock portfolio.\u00a0 She’s over 65 and still working strong.\u00a0 I ask her, when do you think you’ll ever start dipping into that stock you set aside to retire on?\u00a0 The thought horrifies her.\u00a0 She’s spent soooo much time saving and building that the idea of spending it scares the shit out of her.\u00a0 Worrying over it, panicking when her stock broker retired & she had to deal with a new guy she didn’t really know, dealing with the many crashes she’s weathered over the 30 years.\u00a0 How is that money actually making her life better beyond the security of knowing maybe, someday, if she needs it, it might be there.\u00a0 Wouldn’t setting it up as income be wiser?\u00a0\u00a0 And she has a HUGE CD to cover any “emergencies” that might come up and fabulous medical insurance…. really, she’s being paranoid.\u00a0 And who made her paranoid?\u00a0 Stockbrokers who advised her to have a portfolio for retirement.\u00a0\u00a0 Although at least she’s got some property investments also.<\/p>\n
Example Two:\u00a0 My ex wanted us to sell the rental property we owned in Texas to pay off our credit card debt.\u00a0 I told him that was silly.\u00a0 The mortgage\/taxes\/insurance is being paid efficiently by the renters and its set to be paid off by the time we turned 65.\u00a0 Thereby providing us with $600 a month income with no effort on our part.\u00a0\u00a0 Selling it & paying off the credit card debt, would leave so little as a down to try and set up another rental house.\u00a0 By the time it was paid off we’d be dead!\u00a0\u00a0 He got the house in the divorce, I got the IRA.\u00a0 I got a little more than half of the joint credit card debt & honorably kept my extra debt even though it was uncured when we were married.<\/p>\n
My Plan as Example Three:\u00a0\u00a0 I’m going to cash out my Roth IRA.\u00a0 Its almost $20T.\u00a0 I’m going to use half that to seriously reduce my debt and sink the other half in a CD.\u00a0 This will be my cushion for emergencies AND my down\u00a0 payment savings for my first rental house.\u00a0 A savings I’ll be able to add to since I won’t be paying as much credit card debt.\u00a0\u00a0 I’ve already reduced as much of my monthly expenses as a mother of 3 boys can do living in the high rent area of Los Angeles! lol\u00a0 I have 6 years until my oldest finishes 2 years of community college.\u00a0 I hope to have a nice down payment on a property for him to live in (with roommates to pay the mortgage) near the University of his choice, so he won’t be burdened with student loans for his education.\u00a0 If I set aside $150 a month I can do it.\u00a0 I can’t do THAT if I’m paying high interest on credit cards.<\/p>\n
But I’m thinking…. what would happen if we ALL did this?\u00a0 If those who had stock investments pulled them out and payed off their debt.\u00a0 Would the market crash?\u00a0 Maybe.\u00a0 But wouldn’t the banks be stronger as they wouldn’t have so much unsecured loan money out. (I’m assuming this since I’m not THAT familiar with the banking industry! ha!)\u00a0\u00a0 And many would buy homes with that money if they don’t have debt.\u00a0 Which would shore up the failing real estate market which is half of what props up our city governments… which is why there was no money for teachers, etc!\u00a0 Real Estate taxes.<\/p>\n
Those who read the blog… feel free to comment your opinions.\u00a0\u00a0 I’d love the input.\u00a0\u00a0 I just keep thinking….\u00a0\u00a0 How much money does D. Trump have in stocks vs. real estate?\u00a0 Mmmmmmmm???<\/p>\n","protected":false},"excerpt":{"rendered":"
If we really want to stick it to wall street… pull your money out. I’m’ serious!\u00a0 Most of Middle America has their retirement set up in stocks…\u00a0 IRA’s, 401Ks, Pensions of any sort… they are all in the form of … Continue reading