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Old 10-11-2007, 03:44 PM
 
3,394 posts, read 6,758,323 times
Reputation: 3922

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It's been a crazy day in the market today. Most of the high-flying stocks declined sharply. GOOG lost as much as $30, but recovered much of that loss and closed at $622. Who can afford to buy stocks this expensive? The answer is: many working Americans. Chances are you are one. If you contribute to a 401K at work, you might in fact own shares in this company or thousands other publicly traded companies in the form of mutual funds. It's hard to say where the stock market would be without mutual funds, especially 401K backed mutual funds.

But before your money can even go to work for you, it must work for other people first. We all know of Bill Gates, the richest man in America. His riches comes from his stock holdings in his company. And he is not the only one. The list of billionaires comprises of mostly public company founders. Michael Dell and Steve Jobs are billionaires too. There is also another group insiders known as wall street insiders who do very well with the money they make in the market in the form of fees and commissions. Every time these folks sell their stocks to buy a beach-front mansion or a jet, it's your money that makes it possible.

When do you get to buy your beach-front mansion or jet with your stock or mutual fund money? There is only one way for this to happen: you get stocks for nothing, like company insiders do. The best you can hope for is that new generations of workers will participate in 401K to keep the party going. This sounds familiar, doesn't it? Yes, it is similar to social security. The difference is social security requires everyone to participate and is protected by the government.

American workers also used to be able to count on pensions, but that is disappearing quickly in the private sector. Companies have replaced pension fund with 401K to cut cost and put the financial burden on their employees. I find it ironic that employees are asked to invest in 401K which directly benefits the very people who eliminate pension fund from their workers.

Last edited by davidt1; 10-11-2007 at 04:04 PM..
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Old 10-11-2007, 09:49 PM
 
69,370 posts, read 51,711,137 times
Reputation: 9357
Quote:
Originally Posted by davidt1 View Post
It's been a crazy day in the market today. Most of the high-flying stocks declined sharply. GOOG lost as much as $30, but recovered much of that loss and closed at $622. Who can afford to buy stocks this expensive? The answer is: many working Americans. Chances are you are one. If you contribute to a 401K at work, you might in fact own shares in this company or thousands other publicly traded companies in the form of mutual funds. It's hard to say where the stock market would be without mutual funds, especially 401K backed mutual funds.

But before your money can even go to work for you, it must work for other people first. We all know of Bill Gates, the richest man in America. His riches comes from his stock holdings in his company. And he is not the only one. The list of billionaires comprises of mostly public company founders. Michael Dell and Steve Jobs are billionaires too. There is also another group insiders known as wall street insiders who do very well with the money they make in the market in the form of fees and commissions. Every time these folks sell their stocks to buy a beach-front mansion or a jet, it's your money that makes it possible.

When do you get to buy your beach-front mansion or jet with your stock or mutual fund money? There is only one way for this to happen: you get stocks for nothing, like company insiders do. The best you can hope for is that new generations of workers will participate in 401K to keep the party going. This sounds familiar, doesn't it? Yes, it is similar to social security. The difference is social security requires everyone to participate and is protected by the government.

American workers also used to be able to count on pensions, but that is disappearing quickly in the private sector. Companies have replaced pension fund with 401K to cut cost and put the financial burden on their employees. I find it ironic that employees are asked to invest in 401K which directly benefits the very people who eliminate pension fund from their workers.
I'd never buy google at that price.. but in a month it wont matter, cashing all my stock and paying off my house.. woo hoo..
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Old 10-12-2007, 05:07 AM
 
Location: Forests of Maine
28,949 posts, read 45,784,190 times
Reputation: 16240
My VFW post has a bunch of money in a Janus fund, it is making tonnes of money right now. This can not go on forever. These guys have lost money in funds before. So when to pull out?

My money is in Mfrs, generally making around 16% fairly consistently for the past 15 years.
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