Posted by: Dexter and Pamela Montgomery | April 2, 2013

From Coffee Cans and Mattresses to 401Ks: Where Do You Stash your Cash?

Where do you stash your cash? Are you one of the millions of Americans who is giving your hard earned money over to money managers charging exorbitant fees to invest in the stock market? Or, are you blindly pouring money into your 401K plan hoping that it keeps going up? Do you know what you are getting as a return on investment on your cash? Well, a recent article in CNN Money ( suggests that people are getting poorer while the investment companies and money managers who direct your 401K accounts are getting richer investing your money.

According to the article, which was based on recently released Census Bureau statistics, the median net worth of American households was $68,828 in 2011, down from $81,821 in 2000 (adjusting for inflation). Overall, median household net worth fell by $12,993, or 16 percent, between 2000 and 2011. Median household net worth showed no statistically significant change between 2010 and 2011.That means no growth for you.

The Census Bureau report also indicated that Americans are pouring money into retirement investment vehicles such as 401Ks in record amounts. In 2000, 30 percent of all wealth was held in the form of home equity. By 2011, this percentage had declined to 25 percent. At the same time, the share of wealth held in retirement accounts increased from 18 percent to 30 percent over the same period.

What does all of this mean? It means that the lack of financial education is costing you dearly. Are you like so many other Americans throwing all of their money into retirement accounts hoping that when you retire there will be enough there to cover your expenses? Meanwhile, the profits of the companies that you invest in are relativity flat. This sounds more like gambling than investing. It also means that we are way too dependent on the advice of others when it comes to our money. We need to take charge and learn how to manage our own financial destiny by investing in ourselves with good education and trusted investment coaches and mentors. We need to diversify our investments and know more about using self-directed IRA’s to invest in real estate, cash flowing entities, and financial instruments such as notes and liens.

In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing.

Share this post and link with your friends so that they can buy a copy of the book also. Let us know about other topics that you would like for us to discuss.


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