Sanrith Descartes
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Investing General Discussion
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Blazin
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I needed the cash for an offer on a house that we ended up not settling on. If it wasn’t for the cash part of the stupid system could work in my favor because they weigh w2 income heavily which other than my wife I don’t have.
Oh well on the plus side QQQ hit a new all time high today. I really wanted to play the amzn drop but didn’t want to trade AH last night and by this morning it had already bounced $100/share.
Oh well on the plus side QQQ hit a new all time high today. I really wanted to play the amzn drop but didn’t want to trade AH last night and by this morning it had already bounced $100/share.
Sanrith Descartes
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I wonder if Bezos ever reads the ticker and thinks "wow I just lost 10 billion dollars"?
I wonder what that must feel like.
Ps.. yes the 10 billion number is a made up number and yes I know it's a paper loss. Using it for dramatic effect.
I wonder what that must feel like.
Ps.. yes the 10 billion number is a made up number and yes I know it's a paper loss. Using it for dramatic effect.
Blazin
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I doubt it and not just because he is rich, a business owner doesn't believe this company's value changes at the whim of traders. It's the buffett style of thinking. He owns the same amount of the company today as he did yesterday. Now his exwife maybe cared a little more than he did last night.
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well against all good judgement I put some money (a few thousand) into Nokia and wouldn't you know not 3 days later it lost 25 percent in one day! Lesson learned: stop thinking you have anything figured out and just stick with the low fee indexes/mutual funds. All else is roulette wheel.
Sanrith Descartes
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That sucks. Sorry man. If you arent trading based on some form of fundamentals analysis then it pretty much is gambling.
Always remember there is a reason that all the algos and institutional investors are getting out of a stock. If you want to go long in a stock that others are bailing on you need to have a sound reason you believe they are wrong. For every buyer thinking it's going up, there has to be a seller thinking it's going down. One of those two is right and one is wrong.
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I need to hear again. If putting money away in hopes of early retirement, is there any point in bonds? Or should it all be shoved into a S&P index and ride it out for 10 to 15 years? I'm ok with the up and down. What has the best chance of getting me 10 percent a year on average for the next 15 years?
Gravel
Mr. Poopybutthole
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Technically, yes, having 10-20% in bonds allows you to rebalance and smooths out some of the volatility. And it's a small enough amount that it doesn't destroy your returns.
That said, the math behind it is heavily biased because we just came out of, what appears to be, a multi-decade bond bubble. Additionally, on a long enough time frame, you should be able to bounce back from the volatility.
I'd say there's pretty little downside risk to a small percentage of bonds (or even cash). But you absolutely have to have an asset allocation and then stick to it (forcing you to rebalance).
That said, the math behind it is heavily biased because we just came out of, what appears to be, a multi-decade bond bubble. Additionally, on a long enough time frame, you should be able to bounce back from the volatility.
I'd say there's pretty little downside risk to a small percentage of bonds (or even cash). But you absolutely have to have an asset allocation and then stick to it (forcing you to rebalance).
Blazin
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Bonds are quite likely to underperform in the next 15 yrs, I would stick with s&p 500 index. As far as 10% a year it’s certainly possible but with inflation so low it’s more likely to be 8%
Sanrith Descartes
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I'll take the ground between the two above. If your time frame is far enough out bonds may not be an answer. The return on long dated bonds right now might very well be below inflation. Bonds can, and are, the right decision for some people. When you have multiple decades of time for investing, a bond position may very well inhibit gains to a level you may not be happy with. SP500/total market index fund may provide close to the return you are looking for over the time frame you have.
If it were me, I would skip the bonds at current yields. I wouldnt trust going into corporate debt or high yield, and treasury yields are too low right now.
If it were me, I would skip the bonds at current yields. I wouldnt trust going into corporate debt or high yield, and treasury yields are too low right now.
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This isn't exactly the thread for me, since the 30k somebody spent here on stocks is about my entire net worth, but is there any books you guys recommend.
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Sanrith Descartes
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OU Ariakas
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If you have any sort of debt outside a mortgage I would suggest starting with this; if you aren't religious then just skip the bible verses.
Total Money Makeover by Dave Ramsey
brekk
Dancing Dino Superstar
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I've watched some of his stuff on Youtube. He's generally reasonable but I think he takes debt aversion a little too far. Being 100% liquid is a nice goal, but
He's told people to get an old beater rather than getting a car loan on a reasonable sub $10,000 used car. Considering the risks of increased maintenance on a beater and/or lack of safety that's bad advice.
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OU Ariakas
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I agree with you but only because I don't think either of us are financially illiterate. I think his advice is perfect for whipping those that have no clue into shape and forcing them to basically justify every dollar spent as legitimately working towards financial stability. The beater thing is the advice that I disagree with the most but if you've ever really listened to him talk about it he says that you buy a $2,000 beater and save $200/mo per year and then the next year trade it in and buy a $4,000 car....etc. It is an asinine way to think about car purchases even when you are trying to get people out from under any type of monthly payment.
Khane
Got something right about marriage
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I don't know if there is "good" advice when it comes to purchasing vehicles. They are a necessity for the large majority of Americans and more than used vs new is making sure to buy a reliable, safe car. A used Camry is still going to be expensive relative to other used cars because they are so reliable and retain their value. In that regard you don't save yourself as much money purchasing a used Camry vs a new Camry. Especially if you can get a new one during a 0% finance initiative.
Not to mention the lack of stress involved with driving a new, reliable car vs an old beater. What is your mental health and well-being worth to you? Not to mention that being a total, over the top tightwad will more than likely lose you some friends, even good friends. There never seems to be a sensible middle ground for authors like that guy.
Not to mention the lack of stress involved with driving a new, reliable car vs an old beater. What is your mental health and well-being worth to you? Not to mention that being a total, over the top tightwad will more than likely lose you some friends, even good friends. There never seems to be a sensible middle ground for authors like that guy.
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sleevedraw
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2 cents about investing for income given low bond yields: dividend stocks. DGRO or VIG.
2 more cents about Ramsey: Echoing others, he goes too far. While being out of debt is great, his advice applies more to those who are "debt addicts". He recommends a 15-year mortgage when financially it makes more sense to do a fixed 30y if you're prudent about saving and investing. He does not recommend cashback credit cards even though they can be money-saving tools, etc.
2 more cents about Ramsey: Echoing others, he goes too far. While being out of debt is great, his advice applies more to those who are "debt addicts". He recommends a 15-year mortgage when financially it makes more sense to do a fixed 30y if you're prudent about saving and investing. He does not recommend cashback credit cards even though they can be money-saving tools, etc.
Khane
Got something right about marriage
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I agree that 15 year mortgages are better. Maybe 5% of Americans (probably less) are investmest savvy enough to outperform the savings between a 15 and 30 year mortgage through other investments. Even if you go with a 30 year mortgage I still find it a good rule of thumb to never buy a house you wouldn't be able to make payments on if you took a 15 year term. Refinancing to a 10 year some years back and then paying off my house last year was the single best financial decision I've ever made.
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