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Why...

Kenkaboom

September 11, 2017

43 upvotes

/r/MGTOW

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Post Information

Title	Why...
Author	Kenkaboom
Upvotes	43
Comments	17
Date	September 11, 2017 12:37 AM UTC (8 years ago)
Subreddit	Posted in /r/MGTOW
Original Link	https://old.reddit.com/r/MGTOW/comments/6zc2c5/why/
Archive Link	https://theredarchive.com/r/MGTOW/why.557364 https://theredarchive.com/post/557364

Comments

[+][deleted] 8 years ago [recovered] (11 children) | Copy Link

Technically you can get paid for doing nothing if you're smart with money but it's nothing as in not working currently. you still need to get shit done to get to the point where you reap what you sow.

[–]TitanFang924 points5 points6 points 8 years ago (1 child) | Copy Link

[–]Dig-Bick-Nig-Buts8 points 8 years ago [recovered] | Copy Link

[–]mma135790 points1 point2 points 8 years ago (8 children) | Copy Link

[+][deleted] 8 years ago* [recovered] (7 children) | Copy Link

Investing the money into an account (the account should be as secure as a bank account) where it's actively used by professional investors that give you a percentage of the earnings You basically loan your money and get interest. Once enough money is in the account you make enough money for a living without working. Or if you're a stock expert you can do it yourself

[+][deleted] 8 years ago* (1 child) | Copy Link

[deleted]

[–]Dig-Bick-Nig-Buts7 points 8 years ago [recovered] | Copy Link

[–]Teflon08194 points5 points6 points 8 years ago (1 child) | Copy Link

[–]fuckhillaryinthebutt 2 points3 points4 points 8 years ago (0 children) | Copy Link

[–]NaughtyFred0 points1 point2 points 8 years ago (2 children) | Copy Link

[–]TitanFang924 points5 points6 points 8 years ago (0 children) | Copy Link

When you invest money, you do so with the expectation that the money you invest will grow. By investing money in a retirement or brokerage account you are allocating money you are hoping will increase with little direct work from you [Massively simplified].

I disagree with their method, loaning money to other investors, or I disagree with the way they are phrasing it, investing is not always a loan. You are actually buying something a lot of the time

The most basic of all investments is a bond. This is where you loan money to a company or government. One more time, you loan it. Therefore, you expect to get all your money back plus interest. So if you loan $1000 at 2% a year interest, you expect to get $1000 in your principal, + $20 in interest. In one year, without you doing anything, you have made $20 by tying up $1000. This might be what u/Dig-Bick-Nig-Buts meant.

The next most basic investment is a stock. You buy stocks on an exchange or directly from the company itself. However, most people use the exchange. In order to do so, they generally need a brokerage account. When you buy a stock, what you are actually doing is buying a piece of the company; more specifically, you are buying a piece of the companies profits.

When it comes to stocks, there are 2 main ways of extracting money. 1) You sell the stock at a higher price than when you got it, "Buy low, sell high," is the saying. Or 2), the company issues dividends to the stockholder on a certain date. When most laymen think of the stock market, they think of #1. However, someone like me, who values cashflow, prefers method #2. As an example, I have bought 100 shares of AT&T. On average, because I didn't buy them all at once, I paid around $39 for each share. That is a total expense of $3900. As of August 1st, they paid me $49 in dividends for just holding their stock. But, the current price of the stock is $36. So, I have an unrealized loss of $300 but a realized gain of $49. Now, you might be thinking well, why don't you get out? The reason is this. I firmly believe that AT&T (T - the stock ticker symbol) will be a profitable company and be able to continue making money that they can then issue to me as dividends.

Stocks are risky. Especially individual stocks. But the stock market is one of, if not, the best way of growing wealth. However, you must do your homework on the companies.

Or you can passively invest in an S&P 500 mutual fund or ETF. For most people, slowly allocating money into the S&P 500 mutual fund with low fees, might be best.

If you want to learn more use this Investopedia link for stocks, and use this link for investing basics.

The stock market is less complicated then people make it out to be. But, you have to put forth effort to understand what is going on. Then you must have patience, and significant willpower to withstand possible extreme shifts. The market is both rational and irrational because people are both rational and irrational. And as always you must have some kind of exit plan for any position you are in.

[–]Dig-Bick-Nig-Buts1 point 8 years ago [recovered] | Copy Link

[–]Thy_Nomad1 point2 points3 points 8 years ago (0 children) | Copy Link

[–]GimmeDaScoobySnacks1 point2 points3 points 8 years ago (0 children) | Copy Link

[–]SnapshillBot0 points1 point2 points 8 years ago (0 children) | Copy Link

[–]Mr-5-50 points1 point2 points 8 years ago (0 children) | Copy Link

[–]Alternative-MGTOW-1 points0 points1 point 8 years ago (0 children) | Copy Link