Investing v.s. gambling

DVFlyer wrote: Why is it that if I put $500 in a mutual fund, it's considered "Investing".

But if I put $500 on 27 black at the Roulette table, it's called "Gambling" and is illegal in many states?

What's the difference?

PrairieMom replied: um... not sure. the way it is taxed? the stakes are different for sure.
I look at investing as a form of gambling.

mom21kid2dogs replied: Actually, according to the people who train us to deal with gambling addictions any time you place money on anything and stand to lose it~it's gambling. This includes investing, stocks, raffle tickets sold by the PTA, lottery, casino, etc. I never looked at most things that way until I took a bunch of gambling additction training

DVFlyer replied:
More of a "tongue in cheek" question. i.e. I find it ironic that the government allows "investing" but not "Gambling".

How are the stakes different?

Kaitlin'smom replied:
'investing' might take a little longer to lose it all

roulette is a quick way to lose it fast

lisar replied:
me to

luvmykids replied: I see what you're getting at, but personally speaking I've done far better with my investments at the craps table than my gamble in the stock market

kit_kats_mom replied:
So do churches.

My in-laws would NEVER gamble but they do invest.

I never thought of it but I'll add that to my (extraordinarily long) list of reasons that their church is lame.

My2Beauties replied: I always wondered this too. Playing the stock market is a form of gambling IMHO. Both put money into the economy as well It baffles me. I'd much rather sit at the Blackjack table with my $100 right now and take my chances than invest any money in the stock market right now.

PrairieMom replied:
not me, put it in when its low, sit back, and it a few years collect!$$$

jcc64 replied: I know the question is rhetorical, but the difference is that investing is theoretically good for the economy, providing jobs and growth yada yada yada, where gambling benefits only the gambler.
I've never been lucky either way.

redchief replied: I don't know. Maybe that's why I live in Jersey, where both are legal.

jem0622 replied: If you put it in a mutual fund, it is divested into different funds that yield various returns. In 99.9 % of all cases, you gain. When you go to the roulette table...you either win or you lose.

It just depends on how much patience you have to grow your money. I have to say though...I have not been good about putting away for retirement. And with all of the horrible losses (in the billions) with the people who would have handled my 401k...I think I'm gonna go with an IRA instead. I won't lose my money in an IRA. Plus I can put in smaller amounts and can only deposit so much per year. I may consider other options...but an IRA is the only stable thing out there right now...IMHO.

redchief replied:
Not in my experience.

jcc64 replied:

I am a total idiot when it comes to all things financial, but b/c my dh works in this business, I'm somewhat familiar with the terminology. I think an IRA is only as 'safe' or as good as the companies you or whomever is managing it has chosen to invest in. I don't think it's inherently safer than a 401K just by virtue of being an IRA, kwim?