I don't know what's going to happen in the future, but I don't believe I want to have lots of US cash saved up. One morning I think I might wake up and it will be a good as toilet paper. Does anyone else have any ideas on this?
133195
The US dollar is backed by the US Government, (not great but it works). The US government, thankfully, is back by its taxing power over the American people (which is VERY good). I don't think you'll have much to worry about. But I won't keep cash laying around not collect interest or working for you. Inflation is what will really eat away your money.
308888
i have the same problem... just don't max it out in a day... the trick is to pay it off each month... that way you don't get charged interest.
634847
Yep, I've thought about it.\n\nFirst, form a trust and pick a solid company to administer it.  That prize is paid out over 30 years (usually, or something close) and I don't want to lose over half of it in order to get the cash lump sum, yet I might not live long enough to see it all come in.  The trust then keeps it going for my family after I croak.\n\nSecond, a big chunk is going to taxes first and before I see a dime they will want to withhold at least a third.  Current taxes, state and federal would be really close to 40 percent (a rate that undoubtedly will go up in the future, but hopefully not as much as to cost the loss of the over 50 percent discount of the lump sum payment).  So instead of 30 percent withheld, I would have the full 40 percent withheld.  I would rather have government owe me than owe government.  Also, current rates are something like 35 percent for federal and 4 percent (actually 6, but the federal tax is deductible) state, which is 39 percent, so tack on the 1 percent that the trust company expects and make the numbers easier.\n\nThird, I would want to make some charitable donations, so set aside a quarter for a trust fund or foundation to distribute that.  As a Christian, I like to pay my tithe, an old word for a tenth, so that still leaves some 15 percent for things like schools and scholarships and helping poor families out with their health bills, medicines, and such.\n\nFourth, I would want to make some investments to keep the money working.  With today's uncertainty, I might shop for a bunch of banks to make jumbo certificate of deposit (CDs) accounts and get the better interest rates.  When the bank needs to give the money back, especially if I go to federally-insured small banks, they will probably notice that I have a few bucks and want to let me in on local opportunities like some good housing developer that needs some partnership money (he will incorporate first and give me shares or it ain't gonna happen with me).  When I identify an opportunity that will make me money better than the CDs, cash them in when they mature and invest elsewhere.  I've got a couple of practice stock portfolios, one making 19 percent and the other 6 percent increases, so those strategies might work for some of this.\n\nFinally, with the ten percent that remains, divy it up over the time as income.  With that I pay off my bills, go on to get my doctorate.  My wife can get her master's or more too.  My son will probably want to open an upscale coffee shop which will then be no problem.  I can travel abroad periodically, as well as about this country, because there are lots of beautiful places and fascinating things I haven't had a chance to actually experience yet.  Besides, there might be some fun opportunity to invest in and while I'm holding the checkbook folks tend to be nice who otherwise probably wouldn't give more than the time of day.\n\n50 million over 30 years is 1.6 million a year.  That's 1 million after taxes at the current rate.  That's a little over $400k for contributions and another for investments.  An annual $166k for disposable income is more than enough for what I want to do.  Besides, as contributions are often tax-deductible, I expect to get a chunk of that tax withholding back in tax refunds.  Thanks for the dream.
132652
Thank you for asking this!!  I don't see what the big deal is, either.  Any of us could pull off his gig...  Hopefully he's putting his cash in a 401K or something so when his 15 minutes are up, he'll have something to fall back on!
502431
Damn good question, you forgot about the best part, weakness of the dollar. Gold is a fools bet at best, you have to be invested ahead of the crisis, and sell out during the crisis to profit, and vintage lever action Winchester rifles have given a better return over the last few decades than gold. Same thing with other collectables (easy to transport and perishable) that people want to replace what they once had or always desired. Bonds, especially municipal bonds tax-free, are another possibility but again low intrest, yet safe, safe as the dollar anyways. In all practicality, I would say invest in something that will allow you to gain wealth like  your education, real estate that will prosper in a niche market like waterfront or near new mass transit routes, or allow you to do a secondary line of work/at home business such as selling discount goods online, or the like. Put it to work generating more wealth for you. Or you can try stock picking and hope for a multi-national exposed stock or fund, but remember democrats like to punish the "rich", that is anyone who invests what they earn, with taxes on your payroll and your stock dividends/stock sales margins from stock you bought with your already taxed income. Remember even the best stock pickers only average success 50% of the time. Or be like millions of other sucker, myself included, and buy a lottery ticket now and then, that's why it exists, to give us "hope".
580026
I see two opportunities currently, the Chinese market and metals. For specific currency, investing in the Chinese Market is a great route; this is a boom economy and will be a major superpower/economic power in the future. \n\nAn even better choice would be to change the money into metals, such as gold or silver. As inflation increases and the US dollar decreases, it would be a solid investment to put your money in metal. If I were you and had only $1000, I would invest in silver. I have actually bought silver over the Internet from an exchange and seen a return within the last year.
271663
Well yes and no. Long story short it's possible because the US government is selling bonds to other nations, (more like extorting them to buy it, otherwise they will charge a very high tariff on all imports from that country)  and this allows a steady flow of cash into the economy.\n\nThis boom goes on until someone wisens up and demands the loaned money.  At which point, everyone who's borrowed money ends up actually having none, and this cause major and I mean MAJOR chaos.  Think this way, no one has cash. Everyone wants cash. But there is no cash.  Everyone is going to fall down like a domino.\n\nAnyway people call this "depression".  It's a result of living in decadence and buying everything on credit and assuming that tomorrow, your paycheck will be bigger.  Specualtion and greed supplies all the other necessity for a disaster.\n\nI really crammed about 10 books worth of info into a few paragraphs. I hope I got through to you.
458146
absolutely not, unless i needed it for electricity or food or medical expenses. because:\n\n1) insanely high interest rates\n2) digging a deeper hole\n\nyour best bet is to cut back expenses temporarily that aren't absolutely essential (cell phone if you have a land line, downgrade cable packages or eliminate all together, stop eating out at fast food or restaurants, take public transportation, buy less expensive food, etc.). alternatively, buy less expensive christmas gifts. when your situation improves, then you can adjust accordingly.
286329
There are people who make their living with just that very theory. They speculate which currencies will rise and fall against which other currencies, and buy or sell in advance. There really is no way for a layman to tell, even the "experts" rarely agree. \nThe only advice I can give is to look up the performance of the Pound over the last year or so and compare it to today's rate. If it is near the yearly high, then wait a little. If it is near the bottom or about average then go ahead and buy now. \nRemember, this is by no means expert advice I am giving. I have traveled extensively and exchanged numerous currencies over the years, so this is just a good educated guess. \nGood luck and happy travels.
457765
Typically your bank will only hold you responsible for a small amount, say $50 but check with them.  Perhaps they will not charge you anything because you acted so quickly.  Don't worry though, it is not the end of the world.  Just take deep breaths and hang in there and it will all work out in the end.
15828
A billion dollars is stupid money. I'd keep $200million and give the rest away to deserving causes. I would be more than happy with what I had left and living off the interest. As daft as it may sound, I think knowing the rest had gone where it's most needed would provide more satisfaction than the whole billion could buy.
220727
Um...not to state the obvious, but...it's falling.  Markets do that from time to time, and it doesn't necessarily mean that there's anything significant going on.  It's just a sign that people are unhappy/uneasy/worried/ panicking/ taking out money for other things.  \n\nIf a little blip like this has you on Prozac, you'll be comatose before long.  You have to go into investing with an understanding that we'll go through ups and downs.  \n\nHaving said all that, I'm not convinced that this drop is entirely unwarranted.  As one previous answerer said, inflation is now becoming a legitimate worry.  Greenspan, with his magic wand, is gone.  And we're stuck with all this wild spending our government is doing (and not paying for). We're wondering how it could possibly NOT be inflationary.  (Secret hint: it can't.)\n\nSo, armed with that info, what should you do?\n\nPersonally, I've been keen on investing outside the U.S. for some time now.  And today, with overseas markets falling harder than ours, this may be an opportunity to do some switching.  Of course, if the U.S. dollar falls, we'll probably buy less imports from them, but I doubt if that will plunge the world into recession.  We're big, but not that big.\n\nLonger term, I suggest you vote for politicians that understand fiscal responsibility.  (Secret hint: neither of the major candidates in the last election!)\n\nHope you can hold on through this difficult time.
144111
I get money taken out of my checking account every week into ING direct, and now all of a sudden I blink my eyes, its a year later and im SUPER RICH!  all it takes is consistency.  I am also part of an MLM that is making me extra cash that I put aside. Email me at pinkcinnamon3@yahoo.com if you wanna sign up!
664058
Sounds to me like you would lose your shirt if you invest it.\n\nBut if you put it in the bank, as you propose, you would earn interest.\n\nInvesting and banking are two seaparate things.
503977
check this out I have £20.000 of debt then an £90.000 mortgage, a flat that is worth £115.000 if sold, no job and a car with half a tank of petrol and a boot full of tools oh and £0.25 cash, and to top the lot I used rapid restart on the jobseekers allowance after having two weeks work and have to wait 3 weeks to sign on then a further week for the money, hardley surviving on bits of cash paid work. Thanks a bunch Ben French. Would you be annoyed watching 12 years hard graft go down the swanny. 30 years old 35 years before retirement and the whole flat measures 17'x17' this diabolical and I earn good money when I can = £28000 to 35000 a year, so much for electricians.
373661
When I was a lot younger I used to spend all of my money except for a small cushion (anywhere from $100 to $1,000) that I kept in my checking account.\n\nAs I grew older, I began to realize that one day I was going to retire and that was going to require some serious cash because I wouldn't be in a position where I would be able to just go out and earn it if I needed more money.\n\nAnd so I began to save ...  I started small at first with no change in my lifestyle. As that grew, I began to feel more secure and that affected the decisions I made with spending.  The more secure I felt financially, my desire to spend money on just plain "stuff" began to evaporate.  It was a very liberating feeling.  \n\nSaving money can be an enjoyable game.  For instance, I buy frozen weight watchers and lean cuisine entrees in bulk when they go on sale for 1/3 or 1/2 off.  I keep them in the freezer in the office and I have one for lunch every single day with the exception of birthday or celebration lunches.  I keep crystal light or other drink mixes at work and use the water from the cooler.  My total lunch cost averages around $2 a day, when before it was unthinkable that I would spend less than $6 or $7 on lunch every day.  The first time I noticed how quickly that savings added up was after the first 3 weeks or so when I went to make my regular Friday ATM withdrawal and realized that I didn't need more cash because I still had $60 in my wallet.   \n\nYou have to live below your means in order to save.  Most people don't.   Many people realize too late that the time to save money was when they were still making it ... not when they become disabled or are senior citizens.\n\nI honestly think that money management and basic investing should be taught in high school because far too many people these days are growing up in households where extreme credit card debt and poor money management skills are the norm.  If no one teaches them, they will learn the hard way and we all pay when that happens.
426395
Your best bet is to put as much away as you can into your bank account, and do not be tempted to spend it.\n\nI would not go into the investment funds in the short term, but possibly in the longer term.