Last week I called my grandma's investor.....over time I have been very worried about all of her money being in the stock market. She has been living off of a fixed income of 2,000 a month.
When I spoke to her investor...a man I have known since I was 5....he assured me that she would have enough money to last her another 10 - 20 years.....I wasn't quite sure how that was going to be possible if the stock market continued to drop. Not only that but my mother had already informed me that she had already lost about half of what she originally had in there...
So I received a message from my mom this morning. She called to let me know that my grandma's investor took ALL of his people's investments out of the stock market....They are meeting with him this morning, so I will have more information later..
What happened between last week and today, I have no idea...besides the continuing drop in the stock market...why would he tell me that a week ago...then to pull out all of his investor's money!!
Apparently he was also trying to get ahold of Jan Brewer too. AZ's govenor.
UPDATE:
My mom and grandma have now met with the investor, and he said that it was LAST week that he pulled everyone's money out.
REASON: He started doing research on the last time the stock market dropped at this rate, and he said that based on what happened when the depression hit, it would be best to take everyone's money out...He said do not put it in money market's or anything..he said just keep it in your savings....
I am not sure how safe that will be anymore either...the FDIC the people who supposedly insure our money in our savings up to 100,000 dollars actually I think it is 250,000 now...has recently borrowed money from the government to have a line of credit of 100 billion dollars to give people their money back when their bank closes....there were 25 bank closures last year that had brought their funds down to 18.9 billion in the 4th quarter....They are trying to get the credit line up to 500 billion...why is this...do they see many more banks closing in the near future?!?!? http://www.bloomberg.com/apps/news?pid=20601103&sid=aGewvZuHR3dk&refer=news
There have already been 16 banks that have closed this year so far: http://www.fdic.gov/bank/individual/failed/banklist.html
If you have not taken your money out please do so.....get back in when you see it constantly going back up...it will be safer that way..
I feel in the deepest part of my gut that there are going to be rough times ahead...my suggestion to all my friends is that they buy as much food storage as they can afford...This is effecting people....so many people...people close to me, and I am sure it is happening to people close to you...
The most valuable thing you can have is food and water....please prepare yourself. Financially, Mentally, Physically, and Emotionally...I am always here if anyone ever needs to talk.
This ad is being issued on the radio all the time: issued by HOME LAND SECURITY
www.ready.gov
Another helpful site:
www.beprepared.com
Friday, March 6, 2009
Subscribe to:
Post Comments (Atom)
2 comments:
Alma, great post... My take is this... younger generation, leave your money in there, it will recover but think of it as a long term investment. The elderly it may be smart to pull it out. But the cause of the collapse is people pulling all their money out.
Hey sweetness... Dave wants me to add this...
the 2 of you are both right, just talking about 2 different collapses. Angie is right that if everyone pulls their money out of a BANK, the bank will collapse, they need your money to borrow against, it's kind of like equity for them. leave your money in the bank.
stock market CAN crash if everyone pulled their money out, but it would have to be EVERYONE. people, banks, business, everyone. i don't believe it would crash if just people pulled their money out, because you still have huge corporations trading internationally, along with banks, businesses, currency, all kinds of stuff. it would hurt it a little though. the chanc of people pulling everything out is slim because that would mean changing your 401k completely, or simply cashing out. whether you know it or not, you do own stocks via your 401k.
if the market crashed, and everyone just sat back and watched, it would usually mean it collapsed on a global scale. it would have to be huge like global corporations going under, banks failing globally, global deflation, something huge. the stock market has definitely been hurt, but hasn't hit an actual crash YET! though i wouldn't be surprised if it does here in a year or so.
DAVE'S TAKE...
unless you are gonna retire tomorrow, leave it in. you can change some things around (focus on commodities ie. milk, petroleum, valuable metals, etc.) but for the most part, by the time the 20 somethings retire, it will have gone back up, down, up, down, and up so many times again, it won't matter. as far as banks...LEAVE IT IN! always remember, if a bank goes under, it IS fdic insured and you will get your money. same for credit unions, they are ncua insured.
Post a Comment