Investing

Blazin

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<Prior Amod>
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why is this the case? this is me to a T.
Usually because it's an age and income bracket that is going to have people overly confident in their understanding. They are savy enough to read but they read the wrong things. They are engaged enough to know everything they should be fearful about, we just heard a few...The Fed, buybacks!, QE, ZIRP, etc. This little bit of information garnered is devastating leading to making the exact wrong choices. As I mentioned when their portfolio was smaller to their income they just "let it go" as it gets bigger the fear grows, they study a little, that feeds the fear more. The internet provides endless reading on why we are doomed tomorrow and how the market can't possible go up in the face of XYZ.

If you were go through this thread it has a history of people who come in, say market looks rough and they are getting out and some of them that was a 1000 S&P pts ago. They won't ever catch up, and it's a shame. The market can be an incredible life changing thing for people but one thing it certainly isn't is easy. We have a tremendous enemy to our success staring us in the mirror everyday.
 

Captain Suave

Caesar si viveret, ad remum dareris.
1,202
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26d 4h 57m
The best way to grow $100k into millions remains to work hard save as much as you can and put it into an index fund.
^

Been putting money in indexes since I was mowing lawns at 16. Not entirely self-made because of family help with tuition, but currently 40 and facing the quite real ability to retire indefinitely in the next 5-10 years, subject to lifestyle aspirations and how much we pay it forward for the kids' college.
 
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Khane

Got something right about marriage
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Yea I don't agree with that. I think investing in real estate is better than investing in index funds, if you have the stomach for being a landlord that is.

Of course, you can always do both.
 
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Khane

Got something right about marriage
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Especialy when you can get 30 years mortgages below 1% IR (fixed rates...) ... why would you waste any of your cash on real estate.
Uhhh... what? Where do you live?
 

fris

Golden Knight of the Realm
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Risk
Cost of entry


I say them while trying to save enough to start house hacking
 

Gurgeh

Ahn'Qiraj Raider
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Uhhh... what? Where do you live?
I live in France... It's a bit ridiculous, but currently the only plus side of being middle class in Europe, you can borrow 10 years worth of salary for under 1% interest rate insurance included, over 25 years... I honestly have no idea how that works for the banks if there is any significant inflation during the next 2 decades... Some banks will not even require any downpayment, and fund 110% or more of the cost of the house (to pay taxes/moving/repairs/a nice kitchen/whatever).

So basicaly my investment strategy, given the current rules, is like this : my household is earning 6k€/month after taxes, which means the banks allow us to borrow about 500k for 2k€/month. So I've used 320k to buy a 3 bedrooms 2 years ago, now I'm buying another 3 bedrooms for 190k, which is currently rented for 1k/month (mortgage is about 750€/month), but the income from rent add to what I can borrow, as our salaries increase, so I'm planning to buy another one in 2 years if nothing changes. It also means that the rent is money I can save, and that I am saving, mostly in the stockmarket... Which would mean that in 2 years, I'd be capitalizing 3k5/month on a 7k salary.

The risk being, of course, that if the real estate market crashes hard and the stockmarket crashes hard and I have to sell because my income has decreased I'm in real trouble. But I believe that risk to be rather small, as any major crash like this would probably come with some real inflation due the the Eurozone dieing. So, give me another serving of this printed money Christine !
 

Gravel

Ssraeszha Raider
15,951
22,353
47d 9h 10m
Man, Europe's financial situation is absolutely screwed.

Seems like it's just one recession away from total collapse.
 

Gurgeh

Ahn'Qiraj Raider
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71d 15h 32m
Man, Europe's financial situation is absolutely screwed.

Seems like it's just one recession away from total collapse.
In the long run, most assuredly. we've been saying that for over a decade, for good reasons. But it could go on for another decade or two, unfortunately. So it's not a very usefull information from an investing point of view.
 

sleevedraw

Arcade Gannon
680
1,207

Sanrith Descartes

Get off my fucking lawn!
<Silver Donator>
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Figured they would follow suit with something exactly like this; BofA likes their high-balance clients.
Wonder what this is going to do to their credit card rewards which give free trades. Not much value to it as a reward now.
 

sleevedraw

Arcade Gannon
680
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Wonder what this is going to do to their credit card rewards which give free trades. Not much value to it as a reward now.
The credit cards themselves don't give free trades; the trades came from your total asset balance with BofAML, same as the bonus multiplier on the credit cards.

They might slightly increase the multiplier or increase the discount for advisory services for Platinum Honors people because they already got a hundred free trades a month (largely a net neutral for all but the most active traders among them), but the change is a net positive for Gold (me) and Platinum, so I don't really see those tiers getting any new benefits. And BofA Premium Rewards is already the best flat cash card on the market when you have 100k with them, so upping the bonus any more would probably cause them to start taking a loss.

Preferred Rewards is still a pretty solid high-balance loyalty program with or without the free trades. Might not have the wingdings like concierge service like Citigold has, but it's still got a lot of good, utilitarian things like the card multiplier.
 

Sanrith Descartes

Get off my fucking lawn!
<Silver Donator>
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The credit cards themselves don't give free trades; the trades came from your total asset balance with BofAML, same as the bonus multiplier on the credit cards.

They might slightly increase the multiplier or increase the discount for advisory services for Platinum Honors people because they already got a hundred free trades a month (largely a net neutral for all but the most active traders among them), but the change is a net positive for Gold (me) and Platinum, so I don't really see those tiers getting any new benefits. And BofA Premium Rewards is already the best flat cash card on the market when you have 100k with them, so upping the bonus any more would probably cause them to start taking a loss.

Preferred Rewards is still a pretty solid high-balance loyalty program with or without the free trades. Might not have the wingdings like concierge service like Citigold has, but it's still got a lot of good, utilitarian things like the card multiplier.
Interesting stuff. Thanks.
 

Blazin

Creative Title
<Prior Amod>
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Had the joys of filling out FAFSA for the first time with daughter applying for college, and the Feds hand me a giant EFC FU. What's funny reading the rules is that if a person is a spendaholic, have a $2MM mansion doesn't count, drive a Ferrari doesn't count, Foler level watches doesn't count. BUT if you save your money then you can get fucked. System rewards parents who didn't save for the kids school at all and punishes any one who did.

Capture4.JPG


Sorry for rant just tired of entire system being skewed towards consumption.
 

Khane

Got something right about marriage
14,722
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71d 3h 38m
So it doesn't take into account total assets? Just liquid assets?
 

Blazin

Creative Title
<Prior Amod>
1,987
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32d 22h 56m
So it doesn't take into account total assets? Just liquid assets?
It counts cash and cash equivalents, stocks, bonds and includes investment real estate if you hold it in your name. Retirement accounts are excluded. I have a chunk of assets that I just moved from LLCs that I sold and now the cash in my hands. If I went and spent $800k on a car they would hand me money, it's seems insane to me. I don't need the money that's not really what bugs me it's just knowing that a person could be quite wealthy and receives significantly more just irks me.