When you belong to a credit union, you're an owner. One vote per member so you elect your board. A credit union is democracy in action; the interest rates are good - both for savings and loans.
If you buy shares in a bank you are an owner.One vote per share.You can elect the board.
Profits are returned to the owners.The same as all companies.
Over a 40 year time span then Bank of America shares have gone from around $3.50 to $37..The credit union will not generate wealth generation after generation.Companies either listed or private will.
My local butcher is closing,nothing nefarious going on.3 generations have owned it and now they have daughters.None of the girls want to be butchers.Handed down for 3 generations to the next shareholder (owner).Grandfather passed on to son,collected part of the profits ( dividends) in retirement.Son passed on to son,same thing.One problem,the son did not want to be a butcher,he wanted to be an electrician.He hated every moment of working in that shop but felt obligated to keep the family business going. Nobody wants to buy the business so it is not liquid,it can't be sold,it just closes
Companies listed on an exchange are liquid.They can continue for hundreds of years.The profit from the butcher goes to the shareholders ( the family owners).The profit from the bank goes to the owners ( shareholders).No difference. The grandfather needed to spend money to open the shop and buy or rent the premises. To be an owner of B of A you need to buy shares to become a part owner.Exactly the same thing.
In a credit union each member has one vote; nobody can stack the deck. The flip side of saving and investing is debt. Being able to borrow at reasonable rates surely gives you a chance to build wealth and succeeding generations benefit when Mom & Dad get on their feet financially.
You can still stack.For some reason the site will not let me reply,times out so
You have made the common mistake of looking at the cost of capital ( money) not the return on capital ( money).Time is all the difference to it.Coca cola is easy to follow 1 share in 1919 cost $40.After splits you now have 10,000 shares roughly at $60 each.So $600K.
Two people had different interest rates.One paid back the loan and interest and paid back $80.One had a higher interest rate and paid back $100.The cost of the capital didn't really matter.One paid $80 for $600K plus dividends,one paid $100 for $600K plus dividends.
ROE means return on equity,you don't need to know what it means.ROE also means return on effort Two people made the effort.The vast majority just make the effort to hold a hand out and say give me money.I demand my fair share of your effort.I don't know why they just never seem to realise,hang on,why not redirect the effort of holding a hand out to something that will be more productive.
The cost/benefit analysis is another financial term for it.Or cost accretive,take over a company,the cost of the interest is $1 billion.The profit is $1 billion and 2 dollars.Over the years you expect to make that company more profitable and use those profits to pay back the debt and produce more income.
Nobody saves up to buy a house,you borrow money to buy it on the expectation it will save you paying rent,and it will increase in value over the decades.
Yahoo finance is alerted and 2 hours after mentioning coke they send me a " news" article what if.
$1,000 invested in Coke 10 years ago is now worth ~ $2100. $1,000 invested in Pepsi stock is ~ $2700.I don't know if that is with dividends reinvested.
The what if on coke is $40 in 1919,reinvest all the dividends you now have 320,000 shares in Coke worth $19.5 million.The dividend on that is ~ $620,000.
Take the dystopian and distorted view of "reality" that most people do and they have got it wrong every day for the last 105 years.They will get it wrong every day for the next 105 years.
They will put no effort into buying shares in Coke,Pepsi or any other company. The only effort they will make is hand out,I demand my fair share of the effort your family have put in for the last 105 years.
This is how crazy/ greedy people are.Hand out,I demand.
Around 45 years ago while still working at my trade I was curious , I thought I would try something. I borrowed $10,000 on a home equity loan and bought stock in a company I had no idea what I was doing.
3 or 6 months later I was asked how did that stock go .Always be honest so I said they are worth $13,000 now. Immediately it was so are you going to sell them and share that money with us.Always be honest ,I said no,I will have to pay CGT and I don't know how much that is.I will wait and see how this works out.I will try to learn more.
Immediately,then why don't you retire,you've made a lot of money,somebody else will need your job,you are greedy.
So at the age of mid/late 30s,with a mortgage to pay for,and children to pay for $3,000 would last for the rest of my life and pay all bills.Never underestimate how crazy/dumb people are.
That slowly led to a career change and the chance to explain financial matters
in simple terms to people to help them .
Nothing has changed since then,nothing will ever change.My goal was financial security for my family,which they have.They also have enough knowledge to to secure financial security for their families.None of them work in the finanacial industry and never will.
The one piece of very important advice I gave them was there will be no displays of wealth.Just get on with the job of creating financial security forever,and realise you can buy all the toys you want.Don''t buy all of those toys,give money to charity .Don't tell people you are doing well,it will lead to a lifetime of I demand my fair share of your effort/work
Yep, and by the way there is one financial institution/Insurance company that is also and that is USAA, Founded for commissioned officers, it opened to NCO's then all ranks, now if your father or grandfather was a member of the armed forces, you are eligible.
Every year I get a refund on unused profits and premiums, also a yearly Senior Bonus, and contributions to my subscribers saving account, which I can withdraw when I quit my membership, currently about $3,000 and the rates are the very best in the nation.
I have called in for rate comparisons to every company I can think of, and when I tell them I have USAA they say sorry, we can't beat them.
Amen, Thom Hartmann recommended that back during the two big to fail bullshit.
I was banking with Wells Fargo with all of their bullshit fees and charges.
I switched to BECU, no fees, no charges, and better yet I get interest on checking and savings, actually more interest on checking than savings.
The reasonis that Checking accounts, not savings accounts, are part of the reserve based used, along with federal and corporate bonds, for loans.
Time or savings accounts are not.
When you belong to a credit union, you're an owner. One vote per member so you elect your board. A credit union is democracy in action; the interest rates are good - both for savings and loans.
If you buy shares in a bank you are an owner.One vote per share.You can elect the board.
Profits are returned to the owners.The same as all companies.
Over a 40 year time span then Bank of America shares have gone from around $3.50 to $37..The credit union will not generate wealth generation after generation.Companies either listed or private will.
My local butcher is closing,nothing nefarious going on.3 generations have owned it and now they have daughters.None of the girls want to be butchers.Handed down for 3 generations to the next shareholder (owner).Grandfather passed on to son,collected part of the profits ( dividends) in retirement.Son passed on to son,same thing.One problem,the son did not want to be a butcher,he wanted to be an electrician.He hated every moment of working in that shop but felt obligated to keep the family business going. Nobody wants to buy the business so it is not liquid,it can't be sold,it just closes
Companies listed on an exchange are liquid.They can continue for hundreds of years.The profit from the butcher goes to the shareholders ( the family owners).The profit from the bank goes to the owners ( shareholders).No difference. The grandfather needed to spend money to open the shop and buy or rent the premises. To be an owner of B of A you need to buy shares to become a part owner.Exactly the same thing.
In a credit union each member has one vote; nobody can stack the deck. The flip side of saving and investing is debt. Being able to borrow at reasonable rates surely gives you a chance to build wealth and succeeding generations benefit when Mom & Dad get on their feet financially.
You can still stack.For some reason the site will not let me reply,times out so
You have made the common mistake of looking at the cost of capital ( money) not the return on capital ( money).Time is all the difference to it.Coca cola is easy to follow 1 share in 1919 cost $40.After splits you now have 10,000 shares roughly at $60 each.So $600K.
Two people had different interest rates.One paid back the loan and interest and paid back $80.One had a higher interest rate and paid back $100.The cost of the capital didn't really matter.One paid $80 for $600K plus dividends,one paid $100 for $600K plus dividends.
ROE means return on equity,you don't need to know what it means.ROE also means return on effort Two people made the effort.The vast majority just make the effort to hold a hand out and say give me money.I demand my fair share of your effort.I don't know why they just never seem to realise,hang on,why not redirect the effort of holding a hand out to something that will be more productive.
The cost/benefit analysis is another financial term for it.Or cost accretive,take over a company,the cost of the interest is $1 billion.The profit is $1 billion and 2 dollars.Over the years you expect to make that company more profitable and use those profits to pay back the debt and produce more income.
Nobody saves up to buy a house,you borrow money to buy it on the expectation it will save you paying rent,and it will increase in value over the decades.
Yahoo finance is alerted and 2 hours after mentioning coke they send me a " news" article what if.
$1,000 invested in Coke 10 years ago is now worth ~ $2100. $1,000 invested in Pepsi stock is ~ $2700.I don't know if that is with dividends reinvested.
The what if on coke is $40 in 1919,reinvest all the dividends you now have 320,000 shares in Coke worth $19.5 million.The dividend on that is ~ $620,000.
Take the dystopian and distorted view of "reality" that most people do and they have got it wrong every day for the last 105 years.They will get it wrong every day for the next 105 years.
They will put no effort into buying shares in Coke,Pepsi or any other company. The only effort they will make is hand out,I demand my fair share of the effort your family have put in for the last 105 years.
This is how crazy/ greedy people are.Hand out,I demand.
Around 45 years ago while still working at my trade I was curious , I thought I would try something. I borrowed $10,000 on a home equity loan and bought stock in a company I had no idea what I was doing.
3 or 6 months later I was asked how did that stock go .Always be honest so I said they are worth $13,000 now. Immediately it was so are you going to sell them and share that money with us.Always be honest ,I said no,I will have to pay CGT and I don't know how much that is.I will wait and see how this works out.I will try to learn more.
Immediately,then why don't you retire,you've made a lot of money,somebody else will need your job,you are greedy.
So at the age of mid/late 30s,with a mortgage to pay for,and children to pay for $3,000 would last for the rest of my life and pay all bills.Never underestimate how crazy/dumb people are.
That slowly led to a career change and the chance to explain financial matters
in simple terms to people to help them .
Nothing has changed since then,nothing will ever change.My goal was financial security for my family,which they have.They also have enough knowledge to to secure financial security for their families.None of them work in the finanacial industry and never will.
The one piece of very important advice I gave them was there will be no displays of wealth.Just get on with the job of creating financial security forever,and realise you can buy all the toys you want.Don''t buy all of those toys,give money to charity .Don't tell people you are doing well,it will lead to a lifetime of I demand my fair share of your effort/work
Yep, and by the way there is one financial institution/Insurance company that is also and that is USAA, Founded for commissioned officers, it opened to NCO's then all ranks, now if your father or grandfather was a member of the armed forces, you are eligible.
Every year I get a refund on unused profits and premiums, also a yearly Senior Bonus, and contributions to my subscribers saving account, which I can withdraw when I quit my membership, currently about $3,000 and the rates are the very best in the nation.
I have called in for rate comparisons to every company I can think of, and when I tell them I have USAA they say sorry, we can't beat them.
I hadn't heard of this show but will definitely watch it. Thanks for the link.