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If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.
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You wake up and you think, okay, how much money is in my savings account?
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If I want 100% of my money back, how quickly can it be put back in my account, and are there any fees associated with moving it back?
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Sam convinced me that he could deliver an 18 percent return by placing my money in the Special Situations Fund more than twice what my IRA was earning in a bank account.
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My mind began racing, calculating the returns I was forgoing by keeping my savings in a money market account rather than handing them to Sam who could deliver twice as much!
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As for myself, Texas Christian University contracts with me to teach, research, and perform service activities on a regular basis, and in exchange they direct deposit money into my account every month.
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Even I struggle with how to conceptualize those numbers ticking up and down in my bank account as real money, and understanding that concept as a child must be even harder.
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Such liabilities might be bonds it has issued, money borrowed on the overnight markets, even that 3p left in my bank account each month after the mortgage has gone out.
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