Savings vs Trading
I haven’t had a savings account for 40 years or so
40 years ago we could get double digits interest…yes that’s right mellenials !
I actually had something called striped or (zero coupon) bonds which paid like 12% compounded every year
and they were like 20 year bonds.
So they would double in value every 6 years …so more than a quadruple over the 20 years.
Gauranteed..just hold them and that what you get at the end of the term. Doesn’t matter what interest rates do going forward…you still get the 12% appreciation every year ! NOW would anyone take that deal again if they had money in the 70s and 80s ?
Of course that was too boring for me and after 6 years I sold them and I gambled all the profits away by setting up a futures account. Blew it !
So anyhow I decided to see what “Savings Accounts” are doing right now at my bank TD Canada Trust.
Holey Molars ! LOOK at this !
https://www.tdcanadatrust.com/products-services/banking/accounts/account-rates.jsp
Kids can get .1% on their savings ….that should really help the younger generation become savers eh ?
using the rule of 72 ( google it) it will only take 720 years to double their money
Incredible !!
I’ll stick with trading ….should be able to do better than .1%
You’ll probably hate to ear this Fully, but I have an almost identical experience. I can remember the days when saving accounts and MM funds actually paid a decent interest rate. And I had a similar experience in the futures market. Thank God I’m still solvent for now.
Happy to hear you are seasoned Jim.
🙂
We get what we deserve and if it doesn’t kill us it makes us better
Heck, Fully. It’s only 720 years. I know longevity runs in your family. 🙂
That is why folks borrow and why there is a credit cycle!
With interest rates so low it is far better to extend credit – it is what you do with that credit, and when, that is the critical issue.
With a rising stock market and commodity market leverage is a profitable game as long as you are well informed of the cycles, large & small.
Millennial here: it’s not our ‘culture’ to save anymore. Earn some money, spend it on flashy clothes or vacations or food, anything that you can take a picture of and post to Facebook and Instagram to harvest those glorious dopamine hits from likes and follows. It’s better to be a near-broke Instagram “influencer” with thousands of followers than a working 9 to 5 “square” with no social proof or social media presence.
Earning interest from a bank savings account is passé. Bonds? “Those are for old people”. And with the Crypto craze of the last few years even stocks themselves are not attracting my generation. On demand, instant access, who has time for waiting when “You Only Live Once”?
Frodo Baggins? More like Yolo Swaggins
Wow…thanks for the insight Harry….Thats quite a situation .
GL all millennials
Today’s version of the roaring twenties… (1920- 1929)
Indeed, millenials would have rather have a candy bar than silver physical
https://www.youtube.com/watch?v=bYhTFz_SGw0
People Choose Free Candy Bar over Free 10 oz Silver Bar (Worth $150) in Experiment