Investing General Discussion

OU Ariakas · Aug 5, 2020

Takyan said:
Hey folks, I have 10k in a savings account for a 10 yr old and want to do something smart with it. The problem is that I have no idea what to do with it. What are some suggestions and realistic outcomes? Thanks in advance.

Do you want it to be for college? A first house? His retirement?

If the first, I am not the right person to answer since I believe the federal vehicles for college savings are a scam

If it is just for it to grow as large as possible then your best bet is to go low overhead index funds from a Vanguard or similar company. They will tell you to go with some sort of 3 fund setup to just set and forget.

I'll let the more knowledgeable investors give you better advice.

Sanrith Descartes · Aug 5, 2020

LachiusTZ said:
So I'm up like 30% on silver, and 30% on ethereum . . .

When do you big ballers pull profits?

Tempted to pull it off the table w/ silver, but there is STILL almost zero physical inventory. Aka, the reality of "spot" and value arent congruent. So thinking it has more to run up.

I wont give advice on crypto as I dont play in that space. As to silver, its not like a stock which (hopefully) generates profit and you can calculate a valuation. its only worth what value people randomly assign it. Speaking strictly for me, I would take the silver/gold profit and run. EU retail sales are rebounding to pre-Coronachan levels. I think gold/silver will see a rapid elevator effect to the basement "at some point". I dont think it will be a gradual sell down.

The other thing with pulling profits is you have to ask yourself "where are you going to reinvest it?" Do you already have a place to put the Silver money so it can keep running up for you. or are you just going to bank it.

TJT · Aug 5, 2020

Takyan said:
Hey folks, I have 10k in a savings account for a 10 yr old and want to do something smart with it. The problem is that I have no idea what to do with it. What are some suggestions and realistic outcomes? Thanks in advance.

Randomly Select stonk as stonks only go up
All in on various Call options on that stonk
???????
Buy Lambo.

Sanrith Descartes · Aug 5, 2020

OU Ariakas said:
Do you want it to be for college? A first house? His retirement?

If the first, I am not the right person to answer since I believe the federal vehicles for college savings are a scam

If it is just for it to grow as large as possible then your best bet is to go low overhead index funds from a Vanguard or similar company. They will tell you to go with some sort of 3 fund setup to just set and forget.

I'll let the more knowledgeable investors give you better advice.

I was a fan of the 3-fund boglehead portfolio pre-Coronachan. Since then my ideas have changed along with the landscape. Bonds are trash in the current environment and I have little faith in global ex-US investments out performing the US in the near future.

T Takyan I have a custodial account I set up for my daughter. It has positions in QQQ, SPLG and SPYG. So the Nasdaq 100 index , The SP500 index and the SP500 growth index. Its fire and forget for the next 10 years or so (hopefully longer if she leaves it there once she gets access to it). Oh, and it has 5 shares of SBUX because she loves owning Starbucks.

Sanrith Descartes · Aug 5, 2020

DIS up 10% on those 8 cents of positive earnings. A whole lot of analysts and funds had priced in a 63 cent loss for the quarter.

Takyan · Aug 5, 2020

Sanrith Descartes said:
I was a fan of the 3-fund boglehead portfolio pre-Coronachan. Since then my ideas have changed along with the landscape. Bonds are trash in the current environment and I have little faith in global ex-US investments out performing the US in the near future.

T Takyan I have a custodial account I set up for my daughter. It has positions in QQQ, SPLG and SPYG. So the Nasdaq 100 index , The SP500 index and the SP500 growth index. Its fire and forget for the next 10 years or so (hopefully longer if she leaves it there once she gets access to it). Oh, and it has 5 shares of SBUX because she loves owning Starbucks.

Great information here, thanks for that. I have a younger son too and starting to build that fund. Who do you purchase through?

Sanrith Descartes · Aug 5, 2020

Takyan said:
Great information here, thanks for that. I have a younger son too and starting to build that fund. Who do you purchase through?

I use Fidelity for my accounts and Merrill for my mom's (i manager her finances). I like Fidelity and have been with them for decades. For your kid's you can open up what they call a custodial account. Once money is put in, it cant be withdrawn until control of it is handed over to the child when they hit adulthood (age depends on individual state laws). Taxes on profits it makes are a little complicated (it depends how much it makes to determine of the parents have any tax liability). This is to prevent millions of dollars being passed down tax-free to kids. For normal folks taxes on profits aren't a real issue. As the custodian you can trade freely in the account and anyone can donate money to it. I put all her birthday/baht mitzvah money in it.

FAQ from Fidelity

UGMA & UTMA accounts | Tips for custodial accounts | Fidelity

Custodial accounts help adults save and invest money on behalf of a child until the assets must be transferred to them. Learn about UGMA/UTMA accounts here.

www.fidelity.com

Flobee · Aug 5, 2020

LachiusTZ said:
So I'm up like 30% on silver, and 30% on ethereum . . .

When do you big ballers pull profits?

Tempted to pull it off the table w/ silver, but there is STILL almost zero physical inventory. Aka, the reality of "spot" and value arent congruent. So thinking it has more to run up.

My 2c. ETH is a long term hold.

We won't see it peak until next summer if I were to place a bet. With Ethereum 2.0 phase 0 by the end of this year, plus EIP-1559 scheduled for sometime after that (change to base fee + ETH burn... will possibly lower issuance (inflation) to the negatives. Lower than even Bitcoin.). I would suggest holding. You're likely to see a large percentage of ETH currently on the market get locked up in staking which will drastically lower the circulating supply.

If ETH ends up "working" you'll feel like a fool for selling now. If you aren't comfortable with the fundamentals then I'd just take my profit and run.

Full disclosure, I'm actively buying ETH.

Khane · Aug 5, 2020

Sanrith Descartes said:
I use Fidelity for my accounts and Merrill for my mom's (i manager her finances). I like Fidelity and have been with them for decades. For your kid's you can open up what they call a custodial account. Once money is put in, it cant be withdrawn until control of it is handed over to the child when they hit adulthood (age depends on individual state laws). Taxes on profits it makes are a little complicated (it depends how much it makes to determine of the parents have any tax liability). This is to prevent millions of dollars being passed down tax-free to kids. For normal folks taxes on profits aren't a real issue. As the custodian you can trade freely in the account and anyone can donate money to it. I put all her birthday/baht mitzvah money in it.

FAQ from Fidelity

UGMA & UTMA accounts | Tips for custodial accounts | Fidelity

Custodial accounts help adults save and invest money on behalf of a child until the assets must be transferred to them. Learn about UGMA/UTMA accounts here.

www.fidelity.com

I opened one of these for my niece when she was born, pretty painless and easy to manage.

Sanrith Descartes · Aug 5, 2020

For anyone looking for an investment, CVS beat earnings top and bottom today and raise guidance for the year. its 40-day level of support is $63.90 (it bounced off it exactly early but I missed it). Analyst have a price target of about $80. I have an order in to buy some at $64. Company makes over 5$ a share in earnings. It has a lot of debt but thats because it used it to buy Anthem recently. Might be worth a look. Of course due your own due diligence.

Limit triggered at $64. Looks like the bounce was at $63.92
Technicals work 100% of the time about 75% of the time.

Locnar · Aug 5, 2020

Regarding gold/metals. How do you guys go about selling them? I've always used APMEX or Kitco. You can I suppose get better pirces on ebay or what not, but I've seen with my own eyes people get ripped off hardcore on ebay. I'm talking them getting the metal delivered, taking the metal OUT of the package and returning the empty envelope and snatching up the refund from ebay the moment the seller picks up the envelope from the post office.

And Ebay did jack shit about it. 700 in rhodium down the drain. Even opened up the suspiciously light feeling envelope infront of the post office employee.

Locnar · Aug 5, 2020

Sanrith Descartes said:
For anyone looking for an investment, CVS beat earnings top and bottom today and raise guidance for the year. its 40-day level of support is $63.90 (it bounced off it exactly early but I missed it). Analyst have a price target of about $80. I have an order in to buy some at $64. Company makes over 5$ a share in earnings. It has a lot of debt but thats because it used it to buy Anthem recently. Might be worth a look. Of course due your own due diligence.

Limit triggered at $64. Looks like the bounce was at $63.92
Technicals work 100% of the time about 75% of the time.

Im a sucker for these little plugs. You did not lead me astray with Terradine. Don't worry I won't hold you accountable either way. Like Gildor says in LotR:

“Advice is a dangerous gift, even from the wise to the wise, and all courses may run ill.”

Sanrith Descartes · Aug 5, 2020

Locnar said:
Im a sucker for these little plugs. You did not lead me astray with Terradine. Don't worry I won't hold you accountable either way. Like Gildor says in LotR:

“Advice is a dangerous gift, even from the wise to the wise, and all courses may run ill.”

Ill do my best to make sure I mention in bold letters if I think something is speculative (like SPACs). I'm using the current earnings season to find long holds that did well during the shutdown but who wont crash back to the mean once things are back to normal and that also fills a whole in my portfolio in terms of sectors.

LachiusTZ · Aug 5, 2020

Sanrith Descartes said:
I wont give advice on crypto as I dont play in that space. As to silver, its not like a stock which (hopefully) generates profit and you can calculate a valuation. its only worth what value people randomly assign it. Speaking strictly for me, I would take the silver/gold profit and run. EU retail sales are rebounding to pre-Coronachan levels. I think gold/silver will see a rapid elevator effect to the basement "at some point". I dont think it will be a gradual sell down.

The other thing with pulling profits is you have to ask yourself "where are you going to reinvest it?" Do you already have a place to put the Silver money so it can keep running up for you. or are you just going to bank it.

What do you mean retail is rebounding?

Most of the places I look at still nearly out of physical

Sanrith Descartes · Aug 5, 2020

LachiusTZ said:
What do you mean retail is rebounding?

Most of the places I look at still nearly out of physical

"The two consecutive increases in sales fully offset the record declines in March and April as the economy recovers from the coronavirus hit. "

Euro Area Retail Sales MoM

Retail Sales In the Euro Area decreased 0.50 percent in February of 2024 over the previous month. This page provides the latest reported value for - Euro Area Retail Sales MoM - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar...

tradingeconomics.com

Mist · Aug 5, 2020

Sanrith Descartes said:
For anyone looking for an investment, CVS beat earnings top and bottom today and raise guidance for the year. its 40-day level of support is $63.90 (it bounced off it exactly early but I missed it). Analyst have a price target of about $80. I have an order in to buy some at $64. Company makes over 5$ a share in earnings. It has a lot of debt but thats because it used it to buy Anthem recently. Might be worth a look. Of course due your own due diligence.

Limit triggered at $64. Looks like the bounce was at $63.92
Technicals work 100% of the time about 75% of the time.

Counterpoint: CVS is an absolute epic clusterfuck of a company internally, which might explain why it's shares never seem to go up.

Sanrith Descartes · Aug 5, 2020

Mist said:
Counterpoint: CVS is an absolute epic clusterfuck of a company internally, which might explain why it's shares never seem to go up.

I cant have any knowledge of that. The earnings and financials look solid. With a 3% dividend yield if it hits $70 by year end I will be happy.

Fogel · Aug 5, 2020

Can you break down the pro's/cons of dividends a bit more? I know the basics that certain companies pay out dividends to a various degree to incentivize investors, but is the payout based on earnings, stock price, or some kind of combination of both?

Cad · Aug 5, 2020

TJT said:
It will never cease to amaze me how much of the world operates on Oracle products despite all of their products being absolute nightmares to work with. Every single one.

We did great with Oracle on enterprise level stuff when you are already paying for large managed hosting etc.. the license for oracle was either thrown in or a small piece on top. We did large multi-node replicated oracle installs with weblogic custom applications on top... back in my Accenture/consulting days.

MySQL might have come a long way since then but at least in big big installs there really weren’t options. You did oracle or your shit would crash and suck. This was 6-7 figure concurrent users type apps.

For single office or small office apps, total overkill and not necessary.

Khane · Aug 5, 2020

Back when you were doing software development Oracle and MSSQL were the only big players in the enterprise level relational database space. The industry as a whole has come a long, long way since then.

Investing General Discussion

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