How should I Invest my money?

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June 17, 2020
98 upvotes

hey everyone. I have currently $70,000 (4 years worth saving) in the bank. $2,000 in robinhood stocks. I'm also putting away $500 a month into defer comp at my job. I live at home with my parents (no expenses) and I'm probably will stay there for the next 5 years. I'm 25 now.

1 question what is the best way to keep investing my money? Should I just max the defer comp every month?

2 should I pay taxes on my defer comp now or when I cash out in the next 30 years? Cuz right now I'm not paying taxes on my contributions.


Post Information
Title How should I Invest my money?
Author warshadow518
Upvotes 98
Comments 109
Date 17 June 2020 03:46 PM UTC (10 months ago)
Subreddit askTRP
Link https://theredarchive.com/post/696893
Original Link https://old.reddit.com/r/asktrp/comments/hatpuw/how_should_i_invest_my_money/
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Comments

[–]axiscontra81 points82 points  (27 children) | Copy

  1. max out an IRA immediately (6000$ for last year and 6k for this year, do this every year.)
  2. create a diverse investment portfolio and dollar cost average a % portion (in your IRA and maybe robinhood)
  3. Dollar cost averaging in the stock market is the best way to invest, since you are young you dont care about volatility.
  4. Real estate is slow.

Edit: clarity and typos

[–]TreatYouLikeAQuean19 points20 points  (14 children) | Copy

I'd go with this u/warshadow518. You have until July 15th of this year to max the 2019 contribution. Setting up a roth IRA with Fidelity takes like 5 minutes tops.

Real estate can be risky and can require a lot of work on your part. You can invest in real estate through REITs in the market. Doing so in an IRA or any tax-advantaged account allows you to avoid taxes on the non-qualified dividends that REITs pay out which are much higher than other companies (think like 8-22%) dividend yield.

If you head over to the Financial Independence / Retire Early (FIRE) sub, a lot of people are against using physical real estate as an investment tool.

[–]DevilMayCry0 points1 point  (1 child) | Copy

Does it matter who you make the IRA with? Is fidelity better than e*trade for example?

[–]axiscontra2 points3 points  (0 children) | Copy

No do it where its most convenient. I have mine in Bank of America. It counts as money in the bank so you get certain perks.

[–]ValorElite0 points1 point  (1 child) | Copy

Can I still invest for the 2019 contribution if I already did my taxes for this year? (Assuming the July 15th date is referring to the new tax deadline).

[–]TreatYouLikeAQuean0 points1 point  (0 children) | Copy

yes, on fidelity it lets you decide which year you want to contribute to (up until the deadline).

[–][deleted]  (9 children) | Copy

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[–]TreatYouLikeAQuean6 points7 points  (8 children) | Copy

Roth IRA dog.

$6000 is the MAX contribution per year. You don't have to contribute all of that. If you don't need that $1500 and it's just going to sit in your bank account doing nothing. Definitely get it into the market. Invest in companies that you believe in that are undervalued with price targets higher than current share price.

I have a few different accounts so right now my ROTH IRA is pretty heavily invested in Real Estate Investment Trusts because they are still mostly all well off their all-time highs while paying out consistent dividends that I don't have to pay taxes on and can just reinvest.

[–][deleted]  (7 children) | Copy

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[–]Armydude198 points9 points  (2 children) | Copy

An IRA is an investment account that you don’t touch until retirement age. That means 62/65. 57 for some.

You leave the money there and forget about it and just max it out each year. Average returns for the US Stock Market is 10% a year. That means your money grows on average 10%.

So compounded continuously that IRA with $1500 and just depositing $50 every 2 weeks would net you about a million dollars by age 62 if you start in your early 20s. The math is out there in plenty of websites. There will be points where you lose some money but like I said, the average return is 10%.

Like in the recession in 2008 people lost millions of dollars but if they weren’t idiots and panic sold everything in their IRA it should have recovered and gained profit by 2015.

[–][deleted]  (1 child) | Copy

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[–]Armydude198 points9 points  (0 children) | Copy

If the country gets taken over by the Chinese or a nuclear attack wipes ya out, yeah probably.

You’re asking the wrong questions though. If you can’t part with the $1500 this instant without worrying about losing it, you have other priorities to handle first. The $1500 should be as good as lost when you first open the account. It should never be touched ever again until you’re 60.

Look up Dave Ramsey and focus on your financials first. Step 1 is to get a $1000 emergency fund. Step 2 is pay off all debts. Then you open up your IRA and what not.

[–]PureFlames4 points5 points  (0 children) | Copy

“What kind of risk am I dealing with Roth IRA” LMAO

[–]mwrowe920 points1 point  (0 children) | Copy

You need to do a lot more research to understand the full picture.

[–]dan_legend0 points1 point  (0 children) | Copy

First, do your expenses for the last 3 months and average them out. Then take that number and put money away to equal that number in a savings account for emergencies. Once that is filled, pay off any debt that has an interest rate higher than 10%. The reason being, 10% is like the best you can hope to get out of the stock market on average, so paying any debt higher than that is kinda working backward.

Once you have that debt paid off then you should max out Roth IRA. The only risk of a Roth IRA if you live in the USA is the dissolution of the USA. So that's the entire risk to a Roth IRA.

[–]TreatYouLikeAQuean0 points1 point  (0 children) | Copy

sounds like you should build a bigger savings account then.

[–]L1amas3 points4 points  (1 child) | Copy

If you would prefer this route over putting it in the S&P500, would you mind telling me why? Because that's always my default when people ask what to do with money.

[–]axiscontra0 points1 point  (0 children) | Copy

Diversity. S and P isn't diverse. Investing in ETF's aren't bad. I would invest in bluechip stocks and high growth stocks since I am young >30. Their are safer vanguard retirement ETF funds than the SP500 if you are risk averse. I believe with proper research you can do much better.

I trade s&P 500 options for fun. Its not a bad place to put money in no, but a diverse portfolio is much better, we can invest in global markets. Chinese companies, biotechs etc.

[–]gotalowiq2 points3 points  (3 children) | Copy

What’s dollar cost averaging?

[–]axiscontra0 points1 point  (1 child) | Copy

It's a clear directional pointing term that won't mean anything if you lack the inability to google and research things for yourself. I would rather lead you to water than give you a drink.

[–]gotalowiq0 points1 point  (0 children) | Copy

Thanks, I’ll google it :)

[–]dtyler86-1 points0 points  (0 children) | Copy

Following

[–]ApdoSenpai0 points1 point  (1 child) | Copy

Yes to all of this, except physical real estate. While real estate is slow, it is also flexible and easily liquid.

[–]axiscontra0 points1 point  (0 children) | Copy

I can't disagree with you yet I don't suggest it for us young millenials. We don't like to be tied down to physical things just yet, and we want to limit our tax liabilities and responsibilities until we've started something stable.

[–]jadensmithsson0 points1 point  (1 child) | Copy

Why not 401k first? Most companies match, potentially offering up to an immediate 50% ROI.

[–]axiscontra0 points1 point  (0 children) | Copy

He said he doesn't work I believe. But you are right 401k or company plan maxed first, then IRA, then invest

[–]warshadow518[S] 0 points1 point  (1 child) | Copy

can I have a IRA Roth and Defer comp at the same time? What is it about Roth IRA that makes it really good?

[–]axiscontra0 points1 point  (0 children) | Copy

You can do both, it's just you have more tax deferred options for all your millions of dollars.

[–]e36masterrace26 points27 points  (4 children) | Copy

Is there any non-US advise?

[–]kode2010 points11 points  (0 children) | Copy

Check interactive brokers, the work for international investors. Invest in etfs with low fee, itot iwn iefa and iemg are the ones i use. Dont focus on market valuation, focus on the income your investment generates, when the market drops invest agressively. Check out ben felix channel on youtube, best investments channel there is imo.

[–][deleted]  (2 children) | Copy

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[–]alchemical_rage2 points3 points  (0 children) | Copy

Adobe may lose some clients soon since Affinity is releasing a lot of good features on their existent softwares and also new softwares that compete directly with parts from the Adobe Suite.

[–]jadensmithsson0 points1 point  (0 children) | Copy

1 year of living expenses seems like a lot. Why not 6-9 months and invest the rest?

[–]Finexis9 points10 points  (2 children) | Copy

I have a Master's degree in Financial Econometrics. Investing is really beyond the scope of this forum. Everyone here will somewhat disagree about what's best. Assets which investors disagree about the returns are generally bad strategies on a risk adjusted basis (security market line has a kink in reality, not increasing linearly). This has to do with short-shale constraints; only optimists set the price, pessimists usually don't short and hence don't reflect in the price. E.g. high risk stocks are usually bad investments. Better to leverage up low risk (low beta) stocks, called betting against beta which made Warren Buffet rich. However you need leverage and be able to short assets to do the full betting against beta strategy. If you can though, this will probably seriously beat the market (in the sense of a higher Sharpe ratio than eg the Sp500).

Any recommendations here about trying to start trading options or carefully picking out selected stocks to invest in, are disastrous strategies. Hedge funds will eat you alive on a risk-adjust basis. They profit from amateurs like almost everyone here who suffer severe behavioural flaws (aka bounded rationality), such as the disposition effect (selling winners too soon, holding too long on to losers) and inattention (only consider stocks that are popular or in the news when buying, only consider stocks currently in portfolio when selling/shorting). It is not clear in the literature whether this also holds for investing in Bitcoin, that is, whether investing in Bitcoin leads to low returns due to investor disagreement (which is extreme on Bitcoin).

Also reading the "intelligent investors" is very likely a waste of time in the best case. Currently interest rates are negative and this fundamentally changes some concepts in financial economics, on which a lot of strategies in the book were based on as far as I remember.

I believe that as an amateur investor you don't really have many sound strategies aside from index funds.

I don't live in the USA (which everyone basically assumes you do automatically here) so I don't know about maxing IRA or whatever.

[–]dutchgguy0 points1 point  (0 children) | Copy

Perhaps thats why your advice is so different and contributive then! Thx!

[–]xxx69harambe69xxx0 points1 point  (0 children) | Copy

thoughts on holding tqqq and tlt forever

[–]nolancamp25 points6 points  (0 children) | Copy

Put it in your 401k and Roth IRA in low cost index funds.

[–]thesatellite2320 points21 points  (17 children) | Copy

Real estate. $70k will take you pretty far on down payments for properties.

Learn how to invest in real estate, study the market, and make a move. You buy properties and rent them out. It's a constant cash flow with huge returns.

[–]drevenx1310 points11 points  (7 children) | Copy

Real Estate is cliché because it’s something John Doe can learn.

There are many many other business ventures available but still, he may lack the skill or experience to manage a business.

He did well on saving though.

[–]Alcatraz-12-1 points0 points  (6 children) | Copy

such as ?

[–]drevenx134 points5 points  (5 children) | Copy

My opinion is biaised, I’m a digital marketer but I’m making in the six figures running ads on the Internet and staying at home half the time. Ads on social media can be rewarding if you know how to use them at your advantage. For me it’s 10x times easier than Real Estate, but for the average joe it might not be.

[–]Alcatraz-12-1 points0 points  (4 children) | Copy

can you explain your job in more detail pls ?

[–][deleted] 7 points8 points  (3 children) | Copy

His job is 90% networking and 10% making ad campaigns on social media sites.

[–]Velebit0 points1 point  (2 children) | Copy

What does that mean exactly?

[–]TheNotoriousRic2 points3 points  (1 child) | Copy

It means his job is 90% finding clients who will pay him, 10% actually running ads, for which he charges a management fee

[–]Velebit0 points1 point  (0 children) | Copy

I figure almost 70% of people and work they actually do are basically salesmen and saleswork. Wtf happened to oue society.

[–]TominatorXX2 points3 points  (0 children) | Copy

You always need a place to live. Buy a duplex or something that you can "house hack." Rent out one side that pays the mortgage. LIVE FOR FREE. Or close to it. You can buy and move in with a low down payment (3.5-5% pre-COVID) and live there a year and repeat with another property.

[–][deleted]  (1 child) | Copy

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[–]RedTenet1 point2 points  (0 children) | Copy

Depends on the type of rental you do. A HMO is the best in terms of risk/reward.

[–]DetroitGangster-2 points-1 points  (5 children) | Copy

I have been considering this route as well but recently have been hearing all the talks about "housing market crash is next!" in a year or so because for COVID-19. I know I cannot time the market, but historically we are at all-time-highs.

[–][deleted]  (1 child) | Copy

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[–]FUCK_YEA_GLITTER0 points1 point  (0 children) | Copy

Living in Canada, saving for my house right now, hoping this is true. I;d like to scoop up a decent place while the prices are low, and enjoy the bounce back upwards

[–]Velebit2 points3 points  (0 children) | Copy

No youre not. Look at foreclosure and bankrupcy numbers. It is just the FED basically buying out literally every company going under. If Enron was here now it would be bailed out. It is simply the market became so extremely dumb due to average Joeization of investing in last 10 years that the people don't really react to things.

For example 'alpha male signals' create 'market confidence' in 2010-2020 age. Bullshit that didn't work previously... for example with 'New Deal' simply because the average investor is a mediocre IQ white male 23-53... and this crowd responds 'intuitevely' to rhetoric and not to any sensible numbers. This crowd would at all prevous times have these liabilities: wife, 3 kids, own home while now they don't and they are content and 'confident' the situation/regime/Trump will 'take care of them' and that it is fine.

It is utterly idiotic and not connected to reality. The worse off generation is having the highest ever confidence in economy. Honestly this group deserves the wrath and vengence of History and Darwin.

[–]sasakuowo0 points1 point  (0 children) | Copy

That’s good. Save money and when the housing market crashes houses will be at a low. A 250k house might be valued at 60-80k. Buy it and hold it and when the market recovers you’ll get it appraised for 250k or more. After a recession or crash there’s always a wave of new wealthy individuals who know how to take advantage of a market.

[–]thesatellite23-1 points0 points  (0 children) | Copy

You're partially right. People will start losing their homes really soon because they cannot afford to pay their mortgages. So there will be an abundance of houses but few buyers.

Perhaps you should wait until Sept/Oct when the market does crash to scoop up some properties for cheap. They'll appreciate over time

[–]dtyler863 points4 points  (4 children) | Copy

34 year old here, paying down about $20k of credit card debt. As of last year I’m earning about $185k/year. I’m getting very excited reading some of the replies in this thread but I know or what I think I know, the smartest thing I need to be doing right now is just paying down credit card debt with a laser focus. Is this not correct?

Some of you have incredible advice on here and it makes me realize just how ignorant I might be to investments. What I have learned thus far is that when you have credit card debt interest ranging from 13% to 24%, that is eating money quicker than I would be earning in an IRA. Is this correct?

[–]ApdoSenpai3 points4 points  (3 children) | Copy

Yes absolutely. Pay off all CC debt and then invest. At a conservative average of 8% return per year in the US stock market, you’re CCs are crippling you financially.

Right now you have no flexibility until you pay them off.

[–]dtyler860 points1 point  (2 children) | Copy

Thanks! It’s tempting when you earn $600-1,200 a day to just throw a few thousand at something long term and “feel” responsible, but my gut says pay the debt first.

I dont mean to mention finances to sound like an asshole, but that’s the nature of it. I expect to be cc debt free by November at this rate

[–][deleted]  (1 child) | Copy

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[–]dtyler860 points1 point  (0 children) | Copy

Thanks my man! That’s a great way of looking at it, the first part and thanks for the great advice

[–]buddhone4 points5 points  (0 children) | Copy

check bogleheads site, they should have some portfolios samples.

[–]Unatchurral2 points3 points  (1 child) | Copy

Below is the sequence of steps that I would advise. For the most part, it's very similar to what you would find in the Dave Ramsey program, though I make some minor changes. Following them in this order serves to create stability within your financial life, so that you can then built wealth aggressively.

  1. If you have any debt, become debt free. You stated that you live at some, so I'm assuming that you do not have a mortgage. If you did, though, that is not included in this step.
  2. Depending on your risk tolerance, save 3-6 months worth of income in a savings account. I personally shoot for 4 months, but that's just me. In this sense, income means the total amount that you receive from your employer.
  3. Ensure that 15% of your income is being invested in retirement automatically every month. Index funds are your friends because they're low-cost, the US stock market has a good track record over the long term, and you're starting early enough in your life that you can tolerate additional risk in your portfolio by not holding bonds. Index funds also allow you to easily achieve diversification. I purchase index funds inside of a Roth 401(k) and a Roth IRA. Use whatever tax-advantaged accounts you have access to.
    1. If you're not sure what index funds are good, typically anything that tracks the S&P500 is a good starting point. If you want more exposure, a total stock market index is good. If you want to be even more aggressive, you can look into a small cap index. I have a mix of all three.
  4. At this stage in the game, once you've done all the prior steps, working on owning your own primary residence is a great option. This means both purchasing a house as well as paying off the mortgage early (you should target to buy a house where the payments will stop in less than 15 years). You do not want to pay off the loan over a 30 year period of time.

I hope this helps.

[–]redblueninja0 points1 point  (0 children) | Copy

Hey, great advice. I have one question though. In your point 2, what made you decide on n number of months of income instead of expenditures?

[–]richasalannister2 points3 points  (0 children) | Copy

VOO

[–]treehauz5 points6 points  (4 children) | Copy

World is losing it's trust on financial institutions. Everyone knows that they print dollars and other currencies as they want. Inflation is their tool to play and it's never in our favour. Fiat money is NOT RELIABLE.

Invest in blockchain projects. It will be everywhere in 5 years with the help of internet and smartphones. There will be decentralized AIRBNB and decentralized BANKS and decentralized PAYPAL and decentralized SKYSCANNER etc. Decentralization is inevitable and UNSTOPPABLE.

Some cool projects that I've invested in:

-Nano (decentralized, feeless and instant money transfer)

-Unibright (they decentralize your idea or company for you)

-Presearch (decentralized search engine(google))

-Travala (hotel and flight booking that allows crypto payments for the first time)

[–]doonspriggan1 point2 points  (1 child) | Copy

I've never heard of any of these or even this trend you speak of untill now. Thank you for exposing them to me, they look very interesting!

[–]treehauz1 point2 points  (0 children) | Copy

You are welcome bro. Thank you for feedback!

[–][deleted]  (1 child) | Copy

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[–]treehauz0 points1 point  (0 children) | Copy

Yeap. Even more 🤓

[–]r4moy1 point2 points  (0 children) | Copy

60% index funds

[–]gediwer3 points4 points  (0 children) | Copy

Warren Buffet loves index funds. I think you should try those. Also Roth IRA. Couldn’t stress it enough. Start now. Have a million dollars waiting for you at 65 tax free. Learn about real estate (how to flip, how to rent out,etc). If you wanna invest in stocks don’t go looking for big companies in an instant. Stock market is played for the long run. Do your research about companies and decide if you think it’s a good or bad investment. Don’t buy more than five stocks of companies with stock price>$300. Imo real estate,gold,silver are the best investments.

[–][deleted] 0 points1 point  (0 children) | Copy

Your young, take some risks, I took some risks with some crypto, put about 10k in and its worth well over six figures..do your research (buy chainlink), and you'll do alright.

[–]__TheDon__0 points1 point  (0 children) | Copy

Dividend stocks, and maxing out your 401k. I was in the same boat as you, finally decided to put the money to good use. It’s nice having stacks in your bank account, but the value of your money decreases yearly (inflation).

[–]pdiggs15000 points1 point  (0 children) | Copy

First of all, read The Intelligent Investor by Benjamin Graham (preferably the revised version, which is an updated version). This is the holy grail of investment literature and helps you understand the essentials of investments, taxes and risk.

Second, if your not in the financial industry and not a finance guy, then I'd suggest hiring a financial advisor. Robinhood is ok for play money, to see how if your money grows based on your intuition. However, an investors know what they are doing, they have people working 24/7, their people know the markets, who work at your risk level and understand how to diversify your portfolio. Sure they take a small percentage, which is peanuts. Remember Investment is for a long game, and compound earnings can make you happy not for short/quick wins. if you want short and quick risks, I hear Vegas is now open.

Lastly, money growing in your savings or checking account is not smart. I'd say keep a small percentage there for day-to-day activities, or maybe keep some if you're planning a large purchase. Your $70k is growing probably at 1-2%(if your lucky). At your age, you may be able to have more risk and invest that in some riskier stocks/ETA, and then possibly see that money grow at 10-15%/year.

[–]MarylandLion0 points1 point  (0 children) | Copy

Set aside an emergency fund unless you live with the parents then you don’t really need it. Like the others said, put 6K in the IRA for 2019, and 6K in for 2020. Now it’s important to note there is a fixed amount you can put in your IRA depending on your net income and if you have an employer with a retirement plan, so look into that first so you don’t screw yourself over.

Next you’re gonna want to but the bulk of your money into S&P 500 or similar style ETF’s. This will get you steady growth. Don’t be afraid invest a few thousand in individual stocks you like as well. Personally I’m invested in Tesla, Cheesecake Factory, QCOM (5G), and a few other tech stocks.

Now this is where you have some fun. I say you take 5k and mess around in high risk options trading. If you hit it right and time things well, you can make a lot of money fast. I was able to make 10s of thousands of dollars off of an initial 1k because I bought PUT options while the market was crashing during corona. I then moved the profit over to my long term investing account and started messing around with 1k again for options tradings.

[–]brianmcg3210 points1 point  (0 children) | Copy

[–]VigilantSmartbomb[🍰] 0 points1 point  (0 children) | Copy

Work on setting up a portfolio for passive income. Investing in something like m1 finance (since you use robinhood this is kinda similar) and putting your money into something that gives dividends would be beneficial.

$777,777 invested with 4.5% dividends is like $35,000 a year. That’s enough to live off of for most.

Going to check out the personal finance subreddit and checking out their flowchart would be good too. Tells you how to prioritize for essential payments.

I’d you don’t make $6,000 a year I don’t see the point in just suggesting that be the move without weighing the options of what else you could do with that $6,000. Yes it is vital that you focus on that but if that $6,000 had to be used for you to go to school to make $100,000 a year that’d be a better move.

Your first step should be to increase your dollar per hour in labor, like school, and then passive, and then hold in assets.

Most people are saying to just invest but do you have a job? A trade? If the markets crashed for good? Things to think about.

If you don’t have a career. WGU is a good site. Computer science degree around 6 figures can be done in 6-12 months.

[–]Altin_Beg0 points1 point  (0 children) | Copy

Invest half in long term stock market (s&p 500) Other half in real estate, rent it out

[–]ilikedbt0 points1 point  (1 child) | Copy

how much are you making a month ? (can't believe no one asked this yet)

[–]warshadow518[S] 0 points1 point  (0 children) | Copy

$3,152 base + whatever OT I work.

[–]GifThatKeepsOnGivin0 points1 point  (1 child) | Copy

55% upro 45% tmf rebalance quarterly. Outperforms the S&P by 7x over a 30 year period

[–]asyty0 points1 point  (0 children) | Copy

I would definitely not recommend tmf right now because there's just such limited upside for treasuries, but no limited upside for stocks. It's gonna be like this at least until late 2022 as per jerome powell.

OP's question doesn't have a whole lot to do with TRP though...

[–]self-proclaimed_____0 points1 point  (0 children) | Copy

Invest 6k in an IRA now (and keep doing it), and put a good chunk down on a house you want to live in for a few years assuming you buy in a decent area.(I say this as a loan officer, I’ve basically lived rent free + some over the past 8 years, and have seen plenty do way better than me). Learn how to use the rest tactfully. There’s a millions ways to spend, and a thousand ways to actually gain.

You ain’t gonna learn shit from keeping your 70k in a checking account though. At least put that shit in a Money market acct if you’re too scared to figure out how to grow it

[–]officer-maggot0 points1 point  (0 children) | Copy

equity and bond markets are an unpredictable shitshow right now. Buy GLD and gold mining companies. Bitcoin. Oil like Conoco Phillips.

[–]zachthrowaway3000 points1 point  (0 children) | Copy

mirin savings bro

[–]infamous3238-2 points-1 points  (6 children) | Copy

How about you use that money to move out of your parents basement and rent your own place, so you don't end up as a 30 year old living with mommy.

[–]Ranarrseeds6 points7 points  (1 child) | Copy

Why rent tho, could just get a mortgage with that cash

[–]jackandjill227 points8 points  (0 children) | Copy

Exactly. Dude is flexing but not thinking.

[–]riskitit9 points10 points  (2 children) | Copy

Why incur expenses unnecessarily? Big ego? It's so easy to move out if you have money and he has money.

[–]jackandjill224 points5 points  (0 children) | Copy

/u/Infamous3238 riskitit is right.

He should figure out how to make that money work for him. Rather than burning it on a lease or something he doesn't own.

[–]infamous32383 points4 points  (0 children) | Copy

It's so easy to move out if you have money and he has money.

What are you trying to say? That's exactly my point.

[–]Frebaz0 points1 point  (0 children) | Copy

That’s a shitty advise

[–]Velebit0 points1 point  (0 children) | Copy

I have a masters in finance. Right now US central bank is printing money like crazy that means that all existing money is losing value. If there is 1m money overall, 100k is 10% of economic value, if 1m is added, that means 100k is now 5% or has half purchasing power.

Don't keep money in bank. Put it into anything else. If you want to just save it and not worry too much then put it into real estate, gold or bitcoin as those have a stable or slowly increasing value mid term.

Same goes with retirements which are dropping in value right now. If you plan to have a good retirement cash then buy a share of some very stable business that won't fail in crisis. Something that sells food or basic tools. Investing in something like Amazon, Netflix, Tesla is a big gamble because they are a fad of current age and despite either not making any profits, relying on subsidies or preferential treatment by the system.

Overall, if you just feel bad about having it in a bank then put it into bitcoin or gold. If you don't mind a little work yourself, buy a run down property and fix it. And if you wanna basically DO investing then you gotta buy trendy shares and look what is going on constantly and always be nervous if you will in 10 days lose everything.

[–]LSDparade0 points1 point  (0 children) | Copy

btc

[–]THE_EVIL_EYE_IS_REAL0 points1 point  (0 children) | Copy

Cryptocurrency. Big risk, big reward

[–]rprookie0 points1 point  (0 children) | Copy

Would you mind giving me a loaning of $500 to invest in options? I mean you do got a lot of money why not help a youngin’.

[–]MountainFact9-4 points-3 points  (0 children) | Copy

Depends.

Low risk: Invest in gold/silver

High risk: Options trading or selling drugs

Past me would have gone with the latter.

[–]scottknudsen-2 points-1 points  (0 children) | Copy

Not sure about the deferred comp. You'd need to speak to a tax attorney. I'm sure they'd give free advice, hoping that maybe you'd engage them later for something where it would be reasonable to charge.

In terms of investing, a good general rule to consider is 100-age % in stocks and/or other risk assets, which would be 75% in stocks/risk assets. Rest can be in bonds, like TLT ETF. Can also consider 5-10% of portfolio in gold, like through GLD ETF. Roughly 1 year (or whatever you're comfortable with) of expenses should be in cash or cash equivalents, like short term CDs. As always, good to diversify. In terms of asset class and custodian, i.e. don't give $70k to one adviser to invest.

Smart that you're able to save on expenses by living at home.

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[–]gediwer-1 points0 points  (0 children) | Copy

Fuck really? I need to read the news more. F



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