How do you invest your money?

I have always shied away from the stock market. Remembering the crashes over the years. Many seniors lost thousands of dollars just as they were about to retire.
Today I invested a 6 figure amount into a term deposit at 4.25% for 5 months.

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hartfire · 61-69

I was one of those who lost most of what I had during the GFC, but it was because I had followed the advice of a portfolio manager who recommended that I leverage my stock to buy more shares. When the value dropped, I was forced to sell what I had at below value to pay the leveredging debt.
Fortunately, I owned my land, car and had no other debts, so I didn't become homeless as many did. I was 55 at the time and had been living on the income - so the loss of capital meant nothing to live on. I retrained in aged care, and worked as a carer in residential hospices and the community.
Eventually, when my mother died, I invested what she left me in superannuation with green ethics. I survive on that now. It's no more than a public pension, but if I'm careful how I spend on the basics, it's adequate.

Investing in shares is not necessarily a bad thing.

One key is never to get in debt. Then the rises and falls on the market are "paper" value only. They have no effect until the moment the stock is sold, and then the value is how much it rose since the stock was bought.

Another key is not to be greedy. Anything chasing big profits comes with high risks - without exception. Choose stable stocks with reasonable dividends in companies that have reliable management. Experts research that full time, so if one chooses a stock broker who works for a firm which a large research department, one has a good chance of faring well.

Gusman · 61-69, M

@hartfire I often wonder how those people who lost everything during the GFC are faring now.
Even those who lose hundreds of thousands to scams and the like.
Some get their money back, some don't.
How do they live?
If I was to lose all I had I would become homeless and I have always said, "I will not live the homeless lifestyle again", having been homeless in the early 90s.

hartfire · 61-69

@Gusman I met one when I brought fruit to a Sunday barbeque run by You Have a Friend.
The guy was 63 and living in his campervan, permanently homeless.
In his case, he had been seemingly doing quite well during the bull market, but it wasn't just his shares that were leveredged. His house had a mortgage. So he lost he home as well as his income. His wife and the kids left him. He was too old to get another job. And all he had left was his van.

I suspect this situation might be far more common than we know.

Gusman · 61-69, M

@hartfire I am sure there are many thousands we do not hear about. Really sad.
In this real estate market today, if I was to become homeless, I am renting, I would buy a van of some sort and have that as my living space.
As long as I do not lose my money I have enough savings to see me out to the end.

hartfire · 61-69

@Gusman Sounds like you've been prudent.

Ari, my hubbie, drives a Zuzuki Carry or APV van: frugal on fuel and enough space for a bed in the back. We've done so many camping trips in it that it feels like a home. There's a warm sense of calm and familiarity when returning to it.

Having seen the way some people convert their vans, I think life could be a lot worse than living in one.

For the homeless people I chatted with, getting showers and washing laundry was one of their biggest difficulties. If it were me, I'd spend a chunk of my dole or disability payments on a weekly use of the laundromat, and a pool membership for the showers. Most dump their dirty clothes and get fresh-2nd-hand ones at the charity shops.

Though they did not complain about it, I noticed that the food provided free was almost always lacking green veggies and fruit, the bread was always white, and most of the meat was processed. I'd guess the long-termers probably develop malnutrition and low immunity.