Thursday, September 18, 2008

this little piggy

piggy bank
The news is bad about the economy, worse than usual. Big banks are going under, the feds are borrowing money from other countries. Confusion for us peons, so many decisions, where to put the money? Banks, savings, stock market, FDIC, credit union, blah blah blah...

Also on the news is the timely announcement of the richest folks in America thanks to the Forbes 400 list. Thanks for that!

Part of our income goes into a 401K for retirement, but mostly because it is tax deferred. After watching it take a beating time and again, we wonder why keep putting $ into it? We dread getting the statement and seeing how much less it is this quarter than last.

A while back we took advantage of the free financial analysis offered at the bank. After going over our finances and retirement plans, we were told, "It's a good thing you have some land!" Easy for him to say, he doesn't have to pay the taxes on it. In other words, "You won't be able to live off of your retirement savings!"

So instead of putting our hard earned money into retirement plans just to watch it disappear, in addition to the traditional piggy bank, we are looking into other options:

jar o moneyfill a pickle jar

buried treasurebury it in the yard

lumpy mattressstuff it in the mattress

At least with these methods, we can take out the same amount as we put in, which is more than I can say for some of the official savings methods.

Any financial advisors out there? What would you do?


The Calico Cat said...

I pray & ignore it (401K & 503B & ING saving account) figuring that I weon't be using them for 30+ years & maybe by then they will be worth "something" while I greet the customers at a bigboxstore that shall remain nameless as it has done it's fair share to ruin our economy by buying crap from China...

Sorry for the rant, @ 7:48 a.m., I've already had a bad day....

June said...

The little piggy represents a savings vessel here, but I couldn't help but think of all the piggies whose greed got us into this mess.
Sadly, I think our country will never be the same...those with money (Saudis, Chinese, etc)will finish the job of buying us out and owning us.

Meryl said...

Grr...I know exactly what you mean. Thankfully I'm young enough that a) I don't have a lot in retirement savings yet and b) I have a lot of time, but it's still all pretty scary.

Byron Chesney said...

Well, you know that this post caused me to start singing: "The old man lived in the Wooley Swamp way back in Booger Woods. He never
did do a lot of harm in the world, but he never did do no good. People didn't
think too much of him. They all thought he acted funny. The old man didn't
care about people anyway. All he cared about was his money. He'd stuff it all
down in mason jars and he'd bury it all around. And on certain nights if the
moon was right he'd dig it up out of the ground. He'd pour it all out on the floor
of his shack and run his fingers through it. Yeah, Lucius Clay was a greedy old
man and that's all that there was to it."
- Legend of Wooley Swamp, by Charlie Daniels

Jellyhead said...

I have got NO idea about finances... living so long as a student, and then paying back big loans, I never had any spare money to put away. Now that I finally DO have some savings, we are reluctant to put it in shares, or real estate, or superannuation, or managed funds.... all are performing so poorly. We are currently just putting savings into a high-interest account! (sorta like the piggy bank idea really!)

The world's gone mad!

Chris F. said...

I would look at gold and silver. Stuffing it under your mattress sounds good too. But then again, as long as the Fed can create money out of thin air, they rob you through inflation.

lg said...

new reader here... loved this post... so timely and true.