A Letter to You from Grandma Sylvia

Dear Reader,

How are you today? I hope you’re well and enjoying being alive.

 

The Big Picture

Whatever the weather, take some time today to get outside or open a window to breathe the fresh air. Look at the sky and just marvel at the beauty of the earth. Whatever your situation, think on the good things you have and be grateful.

Now please take time to sit back comfortably and relax.

 

Today’s Topic: Cash

 

Cash, money, isn’t a happy topic for many of us.
For scores of people around the world it’s a life and death issue of food on the table and a place to live.

When I was younger I was worried about money more times than not. Even at a Grandmother’s age most of us want to be cautious about money.

What about you?

If you’re lucky enough to have lots of money, then you’re lucky indeed, but I’ll assume you’re like most of us, rich or poor, and you think about the money you have.

Now you’ve come here looking to hear about my experiences as an investor and to become an investor, or a more comfortable investor.

Important Idea 1

This  idea is very important:

•   I only put cash in the market if I won’t need it for at least 5 years.

I’ve found the market is good-to-great for long-term investing, but definitely not for short-term investing, for rather ordinary folks like me.

Whenever I have debts or am saving for some short-term purchase, I’ll keep that money in something very easy to get, like a bank account, a money market account or bonds where I could get cash or a check in a few days or weeks.

Except for a home mortgage, I’d want to pay all my debts before putting money into the market.  That’s something everyone has to decide personally, but paying interest on debts has not been good for many people I’ve known.

I can talk more about ways to save money, but usually it’s important to have a budget and keep track of expenses, cutting back on extras, and then putting that money aside where it can be invested in the market.

 

Important Idea 2

We’re very lucky today that there are places to start investing with only a few dollars. We’re also lucky that the expenses to invest can be very low.

•   I invest where the expenses are low

I’ll talk about more places to invest later, but for now I’ve found Vanguard or Betterment are two places worth knowing about. Here are the web sites and telephone numbers.

Vanguard
https://about.vanguard.com/contact-us.html
Toll free number: 877-662-7447

Betterment
https://www.betterment.com/contact/
Toll free number: 844-291-8593

You can always call and talk with representatives at these places. Ask your questions and begin to learn what services and expenses they have and what best meets your needs. Take time to compare and think of what is best for you.

Remember

 

•  I only put cash in the market if I won’t need it for at least 5 years.
•  invest where the expenses are low

 

*****

That’s my mail to you today. I baked a chocolate cake with whipped cream for a recent birthday and there’s a piece left, so I’m going outside to enjoy it and the rest of the day. Wish you were here.

Grandma Sylvia