That's definitely true. But I feel like people here would be talking about it, so it seems unusual that this one is so volatile.
www.albertbridgecapital.com
I can say without a doubt that TSLA was more of a rollercoaster ride than PLTR ever was. TSLA making it into the S&P 500 has settled it down a lot in terms of volatility. Some of us here used to swing trade TSLA regularly.
Good memo. One reason I love investing is that it has so many different and varied ways to win. If you make 30% return your way and I make 28% my way, I most assuredly did not lose. We both won."This surely will sound quaint and stale to a few readers, but – and I’m sorry – the future value of a thing is ultimately based on the dividends the thing will eventually pay you, or someone to whom you are prepared to sell your shares. Whether the proxies for those dividends are cash flows, earnings, margins, sales, or the dividends themselves, alpha happens when expectations of those future dividends change.
That’s it. That’s the stock-picking game. Stocks are not pieces of art. They are not fiat money. Cults of personality do not last forever in the stock market. Narratives break. Eventually, everyone figured out that Galileo was right. Eventually, everyone will figure out that Cathie Wood isn’t. And it won’t take as long either."
A Memo to Investors
I know, these are weird and trying times. It all makes you wonder what the point of stock-picking is. What is the purpose of kicking the tires, looking under the hood, and doing our jobs?
529 is a solid choice, and probably a far superior choice for kids that could go to college or trade schools. For someone that young it's definitely the route you wanna go. There's alternate ways to use the money, so you're not fixed into any specific path. I'd definitely go it over the roth.
You can also consider a UTMA custodial account for kids. It grows tax free up to certain limits and is then handed over to the kids when they hit the legal age of maturity (by state). Its not a retirement account, but I see it as a great vehicle to use for kids to have a down payment for a house or the like when they are adults. Think of it like a brokerage account for kids that you manage where you cant take any money out and the account becomes theirs at adulthood.
College gets a lot of shit, mostly because it's become a "everyone needs to go" option without consideration for differing interests and abilities.
If your kid has no idea what they want to do or focus at all in college, I'd push them toward a trade school. At the very least that'll give them a good source of income and teach them the value of hard work. With that they'll be able to go to college on their own later on if they find it to their desire.
529 is fine. If they want to go to college, you’ve made plans for it. If they don’t, you missed some gains, you didn’t lose money, big deal. When you go 529, check out your states plan, they have various incentives that a 529 with a brokerage may not have. Indiana’s for example, if you put $5k you get a $1k return at the end of the year. Not a write off, they give you $1k. So you’re essentially putting in $5k a year at a cost of $4k. It’s insanely good. But you have to join the one Indians specific plan that does that, not just have a 529 and live in the state.
I had thought 529 would be superior because you can just keep it in your name and then pay for your kids education shit out of it anyway without decreasing their lifetime gift amount?
I should have been more clear. I wasn't mentioning UTMA as an exclusive alternative but as an addition even if you go the 529 route. My daughter is now 14 and my goal with the UTMA is to hand it to her with enough in it for a down payment on a house. I throw in spare cash now and again and let it run in indexes (QQQ and SPYG).
