MONEY AND THE STOCK MARKET

WHY IS THE STOCK MARKET OVER 27,000 IMPORTANT TO PEOPLE? IN PARTICULAR YOU?


First of all, the stock market is important to folks who invest in an employer's 401(k) / 403(b) plan and those who have traditional IRA's invested in mutual funds. Any stock or mutual fund account is impacted by the stock market. This 27,000 is a record high for the stock market, and that is what you need to know. Now is the time to be saving for your future, your retirement but you cannot do this while you have debt. You must pay off debt first to be able to place money in the retirement accounts that you cannot get out before 59 1/2 without paying a penalty and the taxes that may be due. You should not plan to take that money out anyway-ever. Dave Ramsey says "the only people who get injured on a roller coaster is those who jump off" and what he means is that the rollercoaster ride of the stock market is one an investor has to ride, ups and downs. Stick with it over time.

ROLLER COASTER RIDE OF THE MARKET
DON'T PANIC. STAY ON TRACK.


I placed an article on my facebook page for Financial Pacemaker Coaching about the record high, you may want to read it later. The down side to this record is that the reason the stock market did that is because the Feds reported that they may CUT the prime rate due to inflation and that in turn will decrease savings account interest paid because banks will not be able to charge high interest on loans, car loans, personal loans, homes, etc. Ally bank has already instituted a cut in savings interest from 2.2% to 2.1%. Still Ally is paying way over what brick and mortar banks are paying on savings accounts. Banks really never paid any interest worth talking about anyway.


The bottom line, you cannot make money with brick and mortar savings accounts, and you cannot save money if you are making payments every month to every thing. STINKING THINKING WILL KEEP YOU IN THE BROKE LANE.


Finance is 80% behavior and 20% head knowledge. Pull yourself out of the payments and broke lane and get into paying cash for items on budget and investing for your retirement. You cannot borrow money for retirement. Go back and read my blog about compound interest and you will see why TIME IS SO IMPORTANT.


Don't wait, stop dragging your feet. Get going.


YOU CAN DO IT.


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