OT - Dow plunges 1,175 - worst point decline in history

[saab2000]

Originally Posted by hokoman

and I know a lot more that are struggling with day to day expenses.

About 3 years ago I went over my day to day expenses. It is unbelievable how much we waste on 'stuff'.

- subscriptions, often apps and other electronic month-to-month things like movie services.....
- eating out
- cars and car payments
- clothes
- utilities where they can actually be reduced
- anyone rent their modem? Or replace a cellular phone as soon as the next model appears?
- Cable TV? It is not a necessity. Not even close.

Much of what we think we need is the product of clever marketing. Go over literally everything you spend. It is easy to cut way, way back.


I'm not judging at all but I will openly ask everyone where we can legitimately cut our daily costs. Go over every bill and/or subscription and ask

1. Do we need this?
2. If I need it, where can I reduce it.

It can be done. I've done it. It may take some sacrifice but I'd bet hundreds of dollars per month can be cut with insignificant QOL change if we really think about it.

That's my $.02 and it's worth whatever you paid for it.

[54ny77]

what have you done to cut cable? i've heard that term, but how is that possible? are you saying just order basic internet only and no tv?

Originally Posted by saab2000

About 3 years ago I went over my day to day expenses. It is unbelievable how much we waste on 'stuff'.

- subscriptions, often apps and other electronic month-to-month things like movie services.....
- eating out
- cars and car payments
- clothes
- utilities where they can actually be reduced
- anyone rent their modem? Or replace a cellular phone as soon as the next model appears?
- Cable TV? It is not a necessity. Not even close.

Much of what we think we need is the product of clever marketing. Go over literally everything you spend. It is easy to cut way, way back.


I'm not judging at all but I will openly ask everyone where we can legitimately cut our daily costs. Go over every bill and/or subscription and ask

1. Do we need this?
2. If I need it, where can I reduce it.

It can be done. I've done it. It may take some sacrifice but I'd bet hundreds of dollars per month can be cut with insignificant QOL change if we really think about it.

That's my $.02 and it's worth whatever you paid for it.

[joosttx]

Originally Posted by fa63

I got an email from Personal Capital, saying they are offering 2.35% on a savings account, FDIC insured to $1.25 million. Cash out your investments and park them there until the next crash?

This is basically what I’m doing .

[PQJ]

Originally Posted by 54ny77

what have you done to cut cable? i've heard that term, but how is that possible? are you saying just order basic internet only and no tv?

High speed internet + YouTube TV for me. Cut my cost in half vs traditional internet and cable package from Comcast.

[saab2000]

Originally Posted by 54ny77

what have you done to cut cable? i've heard that term, but how is that possible? are you saying just order basic internet only and no tv?

Internet only. For a while I had Sling TV and basically liked it but cut that subscription a couple months back in anticipation of a move. Saves me $55/month. I could turn it back on right now if I wanted. The joy of internet TV is no contract.

I'm not a huge TV watcher anyway. If someone wants TV a digital antenna will pull in all your local channels in high definition for free.

[unterhausen]

I want to cut cable, but I'm the only one in the household. Verizon has internet-only fios in this area, but they still haven't brought it down our street.

[oldpotatoe]

Originally Posted by 54ny77

what have you done to cut cable? i've heard that term, but how is that possible? are you saying just order basic internet only and no tv?

What I did, internet only(comcast) and a flat plate UHF antenna..have an Apple TV and stream things like Netflix, Hulu, Amazon Prime, a lot of free ones also..use antenna for the local news. Saved about 1/2 of the 'cable' bill...

[froze]

Originally Posted by saab2000

About 3 years ago I went over my day to day expenses. It is unbelievable how much we waste on 'stuff'.

- subscriptions, often apps and other electronic month-to-month things like movie services.....
- eating out
- cars and car payments
- clothes
- utilities where they can actually be reduced
- anyone rent their modem? Or replace a cellular phone as soon as the next model appears?
- Cable TV? It is not a necessity. Not even close.

Much of what we think we need is the product of clever marketing. Go over literally everything you spend. It is easy to cut way, way back.


I'm not judging at all but I will openly ask everyone where we can legitimately cut our daily costs. Go over every bill and/or subscription and ask

1. Do we need this?
2. If I need it, where can I reduce it.

It can be done. I've done it. It may take some sacrifice but I'd bet hundreds of dollars per month can be cut with insignificant QOL change if we really think about it.

That's my $.02 and it's worth whatever you paid for it.

EXACTLY. People crying about how tough of a time they're having all the while spending money on waste like you're talking about! It's funny, I get a coworker crying about how tough their finances are, so I'll ask them if they have cable TV, if they do, and most do, I tell them how to save money by disconnecting it, they won't do it. I ask them how many times do they go to Starbucks a day, I tell them to stop and make their own coffee at home, they won't do it. I ask them how often do they eat out, I tell them to reduce it significantly, they won't do it. They'll come in one day bragging about buying a new $70,000 pickup, or a $2,000 70 inch TV, and next day complaining how tough they have it. Most people spend a lot of money on crap they don't need, their tough times are self induced.

And putting money into a bank savings account or a CD (other than for emergencies where you should have at least 3 months to as much as 6 months) for saving for retirement instead of putting it in the mutual fund markets is a fools game because you'll never keep up with the rate of inflation that the bank pays in interest for your money to be parked there. Does anyone think that your money just sits in a bank being unused by the bank waiting in a vault for you to come and get it when you need it? Hell no, their investing that money you put there so they can make money off of your money, their not stupid nor should you be! https://www.moneyunder30.com/how-banks-make-money

[bigbill]

I'm working towards technology in my house. I've got direct TV because I want the NFL ticket but I'm reevaluating that because streaming has so much to offer. When I moved here the only internet provider was Frontier via DSL. It's ok for internet but sometimes it's slow for things like Zwift and Amazon TV. Suddenlink high speed is now in my neighborhood and I have my own modem. It's $15 a month more than DSL but I think I'll get rid of my direct TV.

Overall, I live well below my means. I'd like to retire at 60 and unless our economic system totally collapses, I can do it.

[makoti]

Originally Posted by bigbill

I'm working towards technology in my house. I've got direct TV because I want the NFL ticket but I'm reevaluating that because streaming has so much to offer. When I moved here the only internet provider was Frontier via DSL. It's ok for internet but sometimes it's slow for things like Zwift and Amazon TV. Suddenlink high speed is now in my neighborhood and I have my own modem. It's $15 a month more than DSL but I think I'll get rid of my direct TV.

This is me. I froze my DTV this summer (and of course the Blues make the Stanley Cup for the first time in 49 years) to save since I never turn it on expect for football. I'd love to drop it entirely, but can't figure out how to get SundayTicket without it. I've heard reddit streams, but I can never even get those to open.

[hokoman]

Originally Posted by froze

EXACTLY. People crying about how tough of a time they're having all the while spending money on waste like you're talking about! It's funny, I get a coworker crying about how tough their finances are, so I'll ask them if they have cable TV, if they do, and most do, I tell them how to save money by disconnecting it, they won't do it. I ask them how many times do they go to Starbucks a day, I tell them to stop and make their own coffee at home, they won't do it. I ask them how often do they eat out, I tell them to reduce it significantly, they won't do it. They'll come in one day bragging about buying a new $70,000 pickup, or a $2,000 70 inch TV, and next day complaining how tough they have it. Most people spend a lot of money on crap they don't need, their tough times are self induced.

And putting money into a bank savings account or a CD (other than for emergencies where you should have at least 3 months to as much as 6 months) for saving for retirement instead of putting it in the mutual fund markets is a fools game because you'll never keep up with the rate of inflation that the bank pays in interest for your money to be parked there. Does anyone think that your money just sits in a bank being unused by the bank waiting in a vault for you to come and get it when you need it? Hell no, their investing that money you put there so they can make money off of your money, their not stupid nor should you be! https://www.moneyunder30.com/how-banks-make-money

Trust me, I know people that go out and spend like they make 7 figures and are in debt to the top of their eyeballs, will spend the extra $1,500 a month for a view of the river, etc. Go out and blow $200 on drinks a night. I'm not talking about those idiots.

I'm talking about blue collar couple with two kids, trying to make a living and provide for their family. Paying for extended daycare, just trying to get by. Living in a city like NY, you meet and get to know all different types of people. They have prepaid cell phones, live in a 1 bedroom in the outer boroughs, etc. Nothing fancy. From a bare minimum - food, shelter and clothes, they are barely making it. When the market turns, they are the most affected, because the greedy board members will direct stores to cut staffing to make sure they have decent profits... I can go on and on having been on the inside.

The easy answer is 'get another job', 'move to a cheaper place to live' etc. It's not that simple. That other job has 10 or 100 other applicants. I sound like a grumpy @ss old person.

Back to the stock market. Still waiting for all these overvalued companies to correct/crash.

[summilux]

Originally Posted by joosttx

Most of my investments are at highs or gone past their potential IMO. So it’s time to sell but I cannot find any place to invest ... I spent the better part of the morning researching and I’m coming up with nothing.

I like Alphabet/Google a lot. They are somewhat down from their all time high but I think they remain a winner. They are cash rich, hiring the smartest scientists on the planet and are investing big on very risky but potentially transformative technologies. If some of their projects pan out, or maybe if only one does, Alphabet will rule the world.

If you have a high risk tolerance, cryptocurrency is also something worth considering. People got burned buying BTC at $20,000 and then having it collapse to $3,000 in 12 months but it's back to $9,000. If blockchain catches on (see FaceBook Libra) then definitely this is a ship that you want to have sailed on. Don't just think about Bitcoin, ETH, LTC, and NEO (among others) are also worth investigating. Downside is that all cyrptocurrency could become worthless.

BTW. We cut cable 20 years ago and make do with internet. TV is not only an expense but it's an incredible time waster and brain killer. Instead of TV, we go to the public library. Books, magazines, CDs, DVDs all for free. Pinching pennies pays off: I'm still working but wife retired at 55.

[kppolich]

A majority of the US spends their money on food, transportation, housing, healthcare, and technology.
But also on their debt (student loan, mortgage, credit cards)

FB, NFLX, GOOG all aren't going anywhere, but they are also all at or near their all time highs. If you think they can continue to monetize your attention then that is a nice place to park some money.

Healthcare ETFs as well.

Transportation/Oil/Gas- Might not be a bad play at the moment if you think Crude will go above the current $53/barrel.

Housing- doesn't mean you have to invest in REITs, but some rental properties or a stake in one wouldn't be a bad idea as a silent investor.

Debt- also not a bad place to park some money if you agree with that morally. AMEX/Visa, etc

[summilux]

Originally Posted by kppolich

FB, NFLX, GOOG all aren't going anywhere, but they are also all at or near their all time highs. If you think they can continue to monetize your attention then that is a nice place to park some money.

GOOG is much more than we see now. If Calico Labs ever creates a pharmaceutical or nutriceutical that is proven to extend human lifespan by 10% or if DeepMind Health creates an AI package that increases mammogram sensitivity or the probability of chemotherapy success, then GOOG's current revenue stream will appear tiny in comparison. And these are just three of many healthcare projects they have.

[kppolich]

Originally Posted by summilux

GOOG is much more than we see now. If Calico Labs ever creates a pharmaceutical or nutriceutical that is proven to extend human lifespan by 10% or if DeepMind Health creates an AI package that increases mammogram sensitivity or the probability of chemotherapy success, then GOOG's current revenue stream will appear tiny in comparison. And these are just three of many healthcare projects they have.

Agreed 100%, but it takes funding to keep those projects going and cash burn can be a problem for any organization no matter how large.

Overall, investing should be a personal choice with time constraints.
If you think GOOG will be worth more at Date XX/XX and you are OK with the risk associated with investing in a large public company with a wide portfolio spanning all areas of the economy- then go for it and stick to your guns when that time constraint is up. It is always OK to revisit your goals and current situation when the time comes.
Example: If you invest $10,000 in GOOG and they absolutely kill it in 75% of their business, but spend 10x on new technology the balance sheet will reflect that.

For everyone else, there are more specialized investments or investments in commodities, treasuries, etc that can be a bit more focused.