Stocks

[firouz]

Jun 14, 2009 5:44:26 GMT -5 Sinbad said:

Meeh, I think I´ll pass. I think I don´t trust finance markets. I´ll rather save my money and put it on a bank account as I´ve done so far where it can bear interest.

Okay, than I would advise you to put your money which you won't need for the next new years in a bank CD. A five-year CD yields 4% interest compared to 0.1% interest for a savings account. And you cannot lose the money, uless the bank fails.

Jun 14, 2009 5:35:28 GMT -5 @firouz said:

Jun 14, 2009 5:21:32 GMT -5 Sinbad said:

Public school teachers have a starting salary of about $35,000. My math teacher had taught for 10 years, and she makes about $60,000 a year.

35 000 pre tax or after tax?

$35,000 pre-tax

[Sinbad]

Jun 14, 2009 5:53:55 GMT -5 @firouz said:

Jun 14, 2009 5:44:26 GMT -5 Sinbad said:

Meeh, I think I´ll pass. I think I don´t trust finance markets. I´ll rather save my money and put it on a bank account as I´ve done so far where it can bear interest.

Okay, than I would advise you to put your money which you won't need for the next new years in a bank CD. A five-year CD yields 4% interest compared to 0.1% interest for a savings account. And you cannot lose the money, uless the bank fails.

CD? Is that something like a building loan contract? Cause they give more interests than a normal bank account.

Jun 14, 2009 5:35:28 GMT -5 @firouz said:

$35,000 pre-tax

... Oh What would that be after tax?

[firouz]

Jun 14, 2009 5:59:47 GMT -5 Sinbad said:

CD? Is that something like a building loan contract? Cause they give more interests than a normal bank account.

No, certificate of deposit en.wikipedia.org/wiki/Certificates_of_deposit

Jun 14, 2009 5:35:28 GMT -5 @firouz said:

$35,000 pre-tax

... Oh What would that be after tax?[/quote] Hmmm... Estimating you pay 25% in taxes would leave $26,250. Nobody pays more than 35-40% in taxes here.

[Sinbad]

*clicks* Ah okay.

huh, 26 500 a year? Hm... I shall be glad then that I´m here.

[firouz]

Yes, I think the education salary and standard is different from the United States. But so are the tax laws.

[Sinbad]

True. But still, my post taxes salary that I will get when starting my first proper job in August is way closer to that 10-year-experience teacher than the newbie.

[firouz]

Aye! Then you should have plenty of money to invest in stocks, treasuries, and bonds and still have some left over to put in CDs. ;D

[Sinbad]

Aw bleeh. What if I´m more the dragon type when it comes to money? Ya know... hord it? ;D That and my building loan thingy.

[firouz]

By putting it in the stock market, or some other investment, you are storing your money away. If you just put it in a savings account, your money will depreciate in value because of inflation, which is generally about 2.2%.

[firouz]

@sinbad: Do you work at a private school, because the pay is much more than at a public school?

[Sinbad]

The school I am at now is a state school, but my new school (from mid August) is a private school.
However, it´s not necessarily the case that you earn more money at private schools. In Germany there are two ways to pay teachers. Most teachers are paid in the higher branch, they are Beamte which could maybe be translated with… hm… civil servant or executive. I don´t know if there is a proper 1:1 translation, but judges for example or policemen are Beamte, too. You´re not automatically one as a teacher, the basis status is to be just an employee. The state can raise your status to that of a Beamter. If they have the money. And private schools often have more money to afford it even though being a Beamter as a teacher is more frequent than being a mere employee. As a Beamter you have many privileges. You get to have a private health insurance for example and there are some taxes you don´t have to pay (don´t know which ones). And of course the pay is better. The difference between an employee teacher and a Beamter teacher can be about 500 Euros a month for the same work (beginners salary. More the older one becomes.)

So, I am lucky. As a trainee you are a Beamter anyways, but the pay is not brilliant because you don´t have that many working hours. However, your Beamten status as a trainee is just for the time that you are a trainee. Good till cancelled after two years. Often, young teachers get to be employees for some years, then they get their jobs promoted to a Beamte status. I am lucky, because I get my Beamte status rightaway. I will be on probation for three years probably, then I will have one more test sort of thing where my principal watches me teach and if things go well, I will become lifetime Beamter after that. Which means, no one can take away that status from me again and I practically can not be fired.

I hope that is logical.

[firouz]

Okay. Well, hope it works. You can finance my trip to Europe. ;D

And I meant that teachers in America get paid more in private schools than public schools. But actually not much more That teacher who had been teaching math for 10 years and making $60,000 a year teaches at a public school. But the starting salary for a teacher in private schools is about $46,000.

[firouz]

tech.yahoo.com/blogs/null/143945
Is that cool or what! BUY NOKIA (NOK)!!!

[firouz]

If any of you Europeans are interested, Siemens (stock ticker: SI) may be a good buy.

Siemens Sees Orders Worth EUR15B From Stimulus Plans
online.wsj.com/article/BT-CO-20090622-701241.html

And more news on Europe:

German businesses expect improvement, survey shows
www.businessweek.com/ap/financialnews/D98VKOV80.htm

How will Anglo react to Xstrata's approach?
www.reuters.com/article/euMergersNews/idUSLM8694620090622

EU OKs Lufthansa To Buy SN Brussels, With Conditions
online.wsj.com/article/BT-CO-20090622-703263.html

And for America, this is a copy from my Facebook page:

Okay, sorry, I have been rather busy. Well, the stock market has certainly come to a halt. But if this weeks news is good, then the uptrend may continue. S&P's downgrades of banks last week did not help. But companies like Hewitt Packard (HPQ), retailer Men's Warehouse (MW), and car rental dealer Carmax (KMX) all reported surprisingly strong earnings and good forecasts.

[firouz]

From www.fool.com/investing/value/2009/07/08/this-is-why-buffetts-buying-stocks.aspx

"How did [Buffett's] "cash is trash" philosophy fare over the past 10 years? $10,000 invested in the S&P 500 exactly 10 years ago would be worth $7,500 today. The safest cash equivalent, [Treasury bills] ... would have returned about 30%, putting you at $13,000. We don't encourage investing by looking in the rear view mirror but a look at the numbers shows that the only bull market right now is in cash."