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Let's talk investing
- Thread starter Starfield
- Start date
Property and stocks.
Max out your 401(k) employer matching contributions and IRA contributions. Go with low fee index funds (like vanguard total stock market or vanguard s&p 500). Now you’re flush at retirement age.
Own your own home if possible. Buy an investment property on top of that if possible. If you’re working in a pricy area and can’t afford to buy, consider buying property somewhere cheaper in a market with good prospects that you might be down to live in later, and rent it out.
Beyond that, you can pick stocks you like, ride Tesla to heaven and so forth.
Does not constitute financial advice.
Max out your 401(k) employer matching contributions and IRA contributions. Go with low fee index funds (like vanguard total stock market or vanguard s&p 500). Now you’re flush at retirement age.
Own your own home if possible. Buy an investment property on top of that if possible. If you’re working in a pricy area and can’t afford to buy, consider buying property somewhere cheaper in a market with good prospects that you might be down to live in later, and rent it out.
Beyond that, you can pick stocks you like, ride Tesla to heaven and so forth.
Does not constitute financial advice.
FreedomOfSpeech
Banned
Bitcoin as a concept is worth learning to understand.
Real estate is good since it is actually tangible, unlike fiat money which is just printed willy nilly.
Also investing in yourself is a good idea. Get in shape, get better gear, have a better life.
Real estate is good since it is actually tangible, unlike fiat money which is just printed willy nilly.
Also investing in yourself is a good idea. Get in shape, get better gear, have a better life.
Ash Sparrow
Banned
If you can buy cheap houses. I think houses are going to become insanely profitable in the near future. And yeah stocks. That would be my advice.
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Kagey K
Banned
Check the MER on your mutual fund. A lot of them the MER is much too high for what you get and you might be better to invest it in an ETF instead.
Rbk_3
Member
1.07%. It's half of what the big banks change but I know I could do better with Quest Trade or Wealthsimple but I like having everything in the same place.
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bigsnack
Member
I've been trading / investing on for about 12 years. I have a strategy based on a daily chart that I move money in and out with, but that's basically "play" money. That being said I'm 100% committed to passive index fund investing. I put the Federal maximum into my 401K every year (9-5 job) and my IRA (freelance income), and I'm on track to be able to retire in about 8 years. With the average return of the market, plus the dividend, there are plenty of gains to be had without having to stress timing the market.
I had a friend who worked at a place called NinjaTrader many years ago. He kept pushing me to throw some money at this new thing called Bitcoin, when it was 2 - 12 dollars a coin. At one point I was ready to pull the trigger and invest about 3000 dollars, but I got hung up in the whole digital wallet thing, and for some reason gave up that afternoon and then didn't go back to it.... It was definitely an OOF moment looking back.
I had a friend who worked at a place called NinjaTrader many years ago. He kept pushing me to throw some money at this new thing called Bitcoin, when it was 2 - 12 dollars a coin. At one point I was ready to pull the trigger and invest about 3000 dollars, but I got hung up in the whole digital wallet thing, and for some reason gave up that afternoon and then didn't go back to it.... It was definitely an OOF moment looking back.
Maiden Voyage
Gold™ Member
Basically what EL said.
My strategy was to pay off my house first while invest for retirement second. Got the house paid off in 23 months and now all of that money goes into 401k, IRA, and HSA. Each is invested in low cost mutual funds.
Spare cash now goes into savings and home improvement. We might look one day at getting into rental property but for the moment our financial focus is on early retirement.
We are also building skills now to potentially start our own companies, but no hard timeline just yet. Everything is theoretical for the moment.
My strategy was to pay off my house first while invest for retirement second. Got the house paid off in 23 months and now all of that money goes into 401k, IRA, and HSA. Each is invested in low cost mutual funds.
Spare cash now goes into savings and home improvement. We might look one day at getting into rental property but for the moment our financial focus is on early retirement.
We are also building skills now to potentially start our own companies, but no hard timeline just yet. Everything is theoretical for the moment.
jshackles
Gentlemen, we can rebuild it. We have the capability to make the world's first enhanced store. Steam will be that store. Better than it was before.
I used to hobby mine back in the day. 2010ish. I was successful and won the 50BTC payout a few times so I had about 200BTC. Joined a pool and earned another about 100BTC over the next few months. At the time, these Bitcoins (300BTC) were worth about $500. My wife nagged at me because my PC was "too loud" during the day (GPU fan running full speed all the time) and I figured it was unlikely that bitcoin would ever be much more than a passing nerd fascination. Thought I'd never see the day when bitcoins were worth more than a couple dollars each, let alone hundreds or thousands of dollars.
Sadly after giving up the mining game (probably at the right time, this was right before ASIC miners entered the arena) I spent all of my digital currency on digital games over the next few months. Obviously I wish I would have held on to them because they'd be worth about $3,400,000 today or I could have offloaded them at the 2017 peak for about $6m. Easy come, easy go, I guess.
Threeshotgamer
Banned
Property investment has been a big one for me over the last year or so but man did i pick a bad time to invest in a property that needed some major renovations. Trying to work with people during the lockdowns and such has been a test of my good will.
mango drank
Member
Passive investing in cheap Vanguard index funds. I also have some money in a savings account, but that barely counts, since interest rates are awful these last few years.
I need to find some more stuff. I should've dumped money into AAPL and TSLA long ago. I've heard commercial real estate investing is a good area to try, but I think you have to be rich and credentialed, and I'm neither. And I dunno how good things like Fundrise are.
I need to find some more stuff. I should've dumped money into AAPL and TSLA long ago. I've heard commercial real estate investing is a good area to try, but I think you have to be rich and credentialed, and I'm neither. And I dunno how good things like Fundrise are.
FreedomOfSpeech
Banned
One thing I never understood.
If I buy stocks, I send money to .. someone. And then where is 'my stock' ?
Just in some database, that hopefully does not get compromised?
If I buy stocks, I send money to .. someone. And then where is 'my stock' ?
Just in some database, that hopefully does not get compromised?
StreetsofBeige
Gold Member
Real estate. But it's worth doing as I live in an area where property values have gone up nice for 15 years.
I'd say skip real estate if the properties in your town are dead money. You still gain on equity renting it out and paying off a mortgage, but probably not worth the risk of a shitty renter. and trying to sell a property in a plce where values are stagnant or the population base is steady or in decline sounds like a pain in the butt to sell.
As for stocks, all I can say is only risk money you can afford to lose.
I'd say skip real estate if the properties in your town are dead money. You still gain on equity renting it out and paying off a mortgage, but probably not worth the risk of a shitty renter. and trying to sell a property in a plce where values are stagnant or the population base is steady or in decline sounds like a pain in the butt to sell.
As for stocks, all I can say is only risk money you can afford to lose.
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Kagey K
Banned
It used to be that you actually had paper stocks that you kept in a safety deposit box, but that was a long time ago.
Pagusas
Elden Member
Yep, and that's the very basis of how some major scams have happened in the industry, with agents taking peoples money, supposedly investing it, sending them fake statements every month, then high tailing it when the client comes asking to cash out.
If you really want to make your brain hurt, think about human society, how often we cant do things like feed people or save lives because of money, and then realize money is a completely made up concept by us. We've literally tied ourselves in knots with some of the systems we've artificially created. Yes it has a basis on demand, need and supply, but still its sad to imagine how many things in society that should be done, don't get done, because of this artificial system.
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ThatStupidLion
Member
find a dope financial advisor/trader for yourself. They know how to handle the market and industry waaaay better than your dumbass picking stocks.
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PSYGN
Member
Basically what EviLore said, but I'll explain index funds in super boiled down way. It is really easy to get into and you don't have to understand stocks, but just trust that the market will continue growing (just as it has for the last 40 years), and so naturally there is still some risk should another great depression event happen. Still, with apps like Robinhood making it dead easy to buy stocks individually, I think we will continue seeing the stock market grow as these apps game-ify it and make it way less intimidating. I would not recommend trying to pick stocks yourself or having a broker person pick them for you, I think the statistics ironically show that index funds do a better job because they scatter their eggs far and wide into different industries instead of placing them into one or few stocks in the same. You'll have bad years and great years, but they average out to about 10% - 12% yearly which is pretty damn good.
Index funds.
How do you double your money in 7 to 8 years?
Compound interest. Just think compound interest when you think of index funds.
In my super simple example below, you'll put in $5000 and get 10% return every year (tax will eat a % of that so maybe 7% to 8%, but for simplicity sake):
You can play around with it here: https://www.nerdwallet.com/banking/calculator/compound-interest-calculator Notice the larger the amount you put in, the more you get. This is part of why the rich get richer.
So how do people get into this? Well, seeing all the graphs, charts, and investment lingo, a lot of people are intimidated to research it and go to a local investment broker who will get you set up, but they take a % cut of your profit (that's how they earn their living) and thus your earnings are lowered.
A broker doesn't have to be a person, though, it can be an institution. Vanguard has index funds with minimal fees (0.10% to 0.15% I think). That means you get to keep a much larger chunk of it. Just go to their website, create an account for free, and transfer money from your bank into it. Once transferred, Google how to put your money into a Vanguard index fund.
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As for other forms of investment, I think I'd get stressed with real estate right now. I think not being able to sell the asset immediately like stocks makes it harder for me to swallow. Maybe when I am older.
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I'm not an investment guru so don't blame me if the stock market crashes as soon as you put your money into it.
Index funds.
How do you double your money in 7 to 8 years?
Compound interest. Just think compound interest when you think of index funds.
In my super simple example below, you'll put in $5000 and get 10% return every year (tax will eat a % of that so maybe 7% to 8%, but for simplicity sake):
- 1st year: $5000 * 10% = $500 gained; $5000 + $500 = $5500.
- 2nd year: $5500 * 10% = $550 gained; $5500 + $550 = $6050.
- 3rd year: $6050 * 10% = $605 gained; $6050 + $605 = $6700.
- 4th year: $6700 * 10% = $670 gained; $6700 + $670 = $7370.
- 5th year: $7370 * 10% = $737 gained; $7370 + $737 = $8,107.
- 6th year: $8107 * 10% = $810 gained; $8107 + $810 = $8917.
- 7th year: $8917 * 10% = $891 gained; $8917 + $891 = $9808.
You can play around with it here: https://www.nerdwallet.com/banking/calculator/compound-interest-calculator Notice the larger the amount you put in, the more you get. This is part of why the rich get richer.
So how do people get into this? Well, seeing all the graphs, charts, and investment lingo, a lot of people are intimidated to research it and go to a local investment broker who will get you set up, but they take a % cut of your profit (that's how they earn their living) and thus your earnings are lowered.
A broker doesn't have to be a person, though, it can be an institution. Vanguard has index funds with minimal fees (0.10% to 0.15% I think). That means you get to keep a much larger chunk of it. Just go to their website, create an account for free, and transfer money from your bank into it. Once transferred, Google how to put your money into a Vanguard index fund.
--
As for other forms of investment, I think I'd get stressed with real estate right now. I think not being able to sell the asset immediately like stocks makes it harder for me to swallow. Maybe when I am older.
--
I'm not an investment guru so don't blame me if the stock market crashes as soon as you put your money into it.
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JapeMincers
Member
I'm not sure if this is the place, if not, let me know and I'll either move it or create a new thread.
I've been relying on my cash ISA for too long now and its poor 0.01% means my cash is actually worth less each year with inflation at the rate it is. Most of my savings are gone as I've bought a new car and house so I'm looking to create a more diverse portfolio going forward. Ideally one that gives me a combination of easy access (just in case) and more longer term savings (3+ years).
I'm not risk adverse but I would like to edge more on the side of caution.
So far I have the following, percentages are the £xxxx mount per month to be invested/saved.
Vanguard S&S ISA - 50%
LifeStrategy 60% Equity Fund - 25%
FTSE Global All Cap Index Fund - 25%
Cryptocurrency (Binance) - 5%
Bitcoin - 2.5%
Ethereum - 2.5%
(0.6%) Cynergy Cash ISA - 10%
(1%) Bank 1 12m Regular Savers - 25% (Max Allowed)
(2%) Bank 2 12m Regular Savers - 10% (Max Allowed)
Happy to be told different
I've been relying on my cash ISA for too long now and its poor 0.01% means my cash is actually worth less each year with inflation at the rate it is. Most of my savings are gone as I've bought a new car and house so I'm looking to create a more diverse portfolio going forward. Ideally one that gives me a combination of easy access (just in case) and more longer term savings (3+ years).
I'm not risk adverse but I would like to edge more on the side of caution.
So far I have the following, percentages are the £xxxx mount per month to be invested/saved.
Vanguard S&S ISA - 50%
LifeStrategy 60% Equity Fund - 25%
FTSE Global All Cap Index Fund - 25%
Cryptocurrency (Binance) - 5%
Bitcoin - 2.5%
Ethereum - 2.5%
(0.6%) Cynergy Cash ISA - 10%
(1%) Bank 1 12m Regular Savers - 25% (Max Allowed)
(2%) Bank 2 12m Regular Savers - 10% (Max Allowed)
Happy to be told different
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